Amazing. Clear. Not sensational. No click bait. On the mark. Housing follows equities. Goes up and down cyclically but in the long run both have gone up, up, up…!
The crash and rescue phase usually lasts about 4 years. This means the recovery phase starts in 2012 not 2008. The mid cycle dip would happen in 2019ish , not 2016.
The sad reality is that most will find remortgaging isn’t an option because the lender’s stress tests no longer support the loans they have. Product switches or standard variable rates will be the reality for most in 2023 unless things change quickly
no one can time the market so perfectly unless you are the actual speculator yourself. stop dreaming everyone. just buy the property that you can afford. make sure your monthly payments are less than 40% of your income. if your cashflow doesn't work you can go bust within a few weeks. don't over invest. if you already have, then cut your losses and dumpt it immediately and just focus on paying back your debt. it's better doing this than holding on to something you can't affford.
My fear is not the property cycle. My fear is the Scottish government regulation! 6% second property and someone can be in your house, paying you no rent and you can’t evict them for 12 months and that’s just the start. If I’m wrong please tell me.
In order for this cycle to be 18 years there needs to be a significant global recession in 2023 so that inflation & therefore interest rates can come down. Otherwise this cycle lasted 14 years
it's called inflation my friend, a 4 bed detached house in london back in the 70s was priced at a few thousand pounds, they would probably call you crazy if you said the same house would go on to cost more than 6 digits just 30 years later, and 7 digits another 20 years later
Amazing. Clear. Not sensational. No click bait. On the mark. Housing follows equities. Goes up and down cyclically but in the long run both have gone up, up, up…!
The crash and rescue phase usually lasts about 4 years. This means the recovery phase starts in 2012 not 2008. The mid cycle dip would happen in 2019ish , not 2016.
Should the house prices be in line with how much much is printed by the BofE?
Excellent video. Great explanation.
Thank you Scott, I appreciate that!
Other people's fear is our opportunity.
The trouble is now when we all remortgage to a new fixed rate... we will be on interest only with no cash flow profit every month.
The sad reality is that most will find remortgaging isn’t an option because the lender’s stress tests no longer support the loans they have. Product switches or standard variable rates will be the reality for most in 2023 unless things change quickly
Rents will rise then
Other options are available... Such as Tracker and Discount Variable Rate. You don't have to go for a fixed rate mortgage.
Trackers are the new darling of the mortgage market. 5 year fixes are bad value for the time being.
why isnt my term 175 years? 🥺
no one can time the market so perfectly unless you are the actual speculator yourself.
stop dreaming everyone. just buy the property that you can afford. make sure your monthly payments are less than 40% of your income. if your cashflow doesn't work you can go bust within a few weeks.
don't over invest. if you already have, then cut your losses and dumpt it immediately and just focus on paying back your debt.
it's better doing this than holding on to something you can't affford.
My fear is not the property cycle. My fear is the Scottish government regulation! 6% second property and someone can be in your house, paying you no rent and you can’t evict them for 12 months and that’s just the start.
If I’m wrong please tell me.
My fear is the Scottish government in general.
In order for this cycle to be 18 years there needs to be a significant global recession in 2023 so that inflation & therefore interest rates can come down. Otherwise this cycle lasted 14 years
I think the property market will always be up and down because otherwise any crap house the price could reach millions of pounds by 2050
it's called inflation my friend, a 4 bed detached house in london back in the 70s was priced at a few thousand pounds, they would probably call you crazy if you said the same house would go on to cost more than 6 digits just 30 years later, and 7 digits another 20 years later
😮
this is trusted education from a certified UK company i am learning from them amazing free stuff