Hey Steemerzz!
I am a true believer in real estate being a proven and great way to become wealthy and financially free in life, enabling people to achieve total time freedom to do what they want when they want.
In a previous post I mentioned how in April 2016, I went to Melbourne for a property seminar; later in that year I went to another free seminar on real estate in Adelaide which was a rich dad affiliated event. I brought my best friend, Jack, who lives in Adelaide to this event because I wanted to show him first hand what I had been exposed to and learned regarding the potential in real estate investing to earn a living and even then some!
Best friend: Jack
During the event, both of us had earned a bonus CD each which wasn't sold anywhere (they were for seminar giveaway presents, given out to individuals in the crowds who took action or participated in answering questions or giving explanations on questions or ideas that were raised during the seminar) This present made my friend even more engaged and interested in the seminar and at the end once the seminar speaker promoted the next, 'paid' course that would teach us more in depth ways to earn money through real estate, we both jumped in and paid then and there for the next seminar which was a 3 day seminar unlike this current 1-2 hour free seminar.
Dark pink is Jack, light pink is meee
I have no idea what everyone is pointing at ⬅️❔↖️❔↗️❔
I booked time off work to attend the seminar and once the time came, I drove to Adelaide and stayed at Jack's auntie's house for the 3 nights in town. I discovered a great deal more regarding property investing during those 3 days and I will share some of it with you now.
I would like to explain HMOs (Housing of Multiple occupancy)
HMO is a British English term which refers to residential properties where ‘common areas’ exist and are shared by more than one household.
A home is a large HMO if the following applies:
-It is at least 3 storeys high
-at least 5 tenants live there, forming more than 1 household
-you share a toilet, bathroom or kitchen facilities with other tenants
Benefits of HMO in UK:
-There is an increase in demand for room only lets like HMO
-You get a higher gross rental income
-You need LESS properties to produce MORE rental income
-Your money effectively works harder for you
-Lower risk investment as more profit centres within one building
Cost for tenants:
-HMOs are usually cheaper than a one bedroom flat with a room for a tenant.
-When comparing the average tenant from a HMO and the average tenant from a one bed flat, the HMO tenant saves more per year.
-HMO agreements often include most utility bills with the rent because it is difficult for landlords to calculate a fair price for the bills to each individual tenant and it is also more appealing to potential tenants.
HMOs must comply with basic requirements including but not limited to:
-Linked smoke alarms
-Furnished with fire safe/tested furnishings
-Electrical certification for building
-Meet gas safety requirements
-Have fire exit signs at exit doors
-Have fire doors and fire escapes
Sourcing HMOs
This is where you look for a property that you can use as a HMO
Look for things such as:
-Town houses
-A property with 2 or more reception rooms
property with 3,4,5 or more bedrooms with 2 recreational rooms
-Garage(s) built on the side of the house to renovate and let out to a tenant or keep as a garage and increase rent to accommodate garage hire/use
-Kitchen dining areas to share between tenants
-Location of property close to university, hospital, offices, town CBD, etc
For New Zealand:
-NZ tenants prefer quality housing over quantity, meaning it may cost you more for a HMO in NZ than UK, but, you may be able to earn a higher rental income from NZ HMOs due to its higher quality finish.
-NZ HMOs have 6 or more people and have similar requirements and restrictions to UK HMOs.
-Get a property that has wheelchair accessibility as more people are retiring!
-You can achieve a higher positive cash flow p/month from HMOs in comparison to buy to lets and social housing - that is money for you to keep every month AFTER all expenses paid!
Story Continued..
The above pics of the group were only a fraction of the people that attended the 3 day seminar, the two pics above included the speakers and investors themselves which ran the event and the remaining people who attended the 3 day event who then purchased the next and final set of investing information/courses, called the elite trainees.
Thanks for reading, be smart. 💡