25/06/2022
It is extremely likely that the UK government will announce soon that we are officially in a recession.
Inflation is currently at 9% and growing, while the Bank of England interest rates recently rose to 1.25%.
This means though, that if you have cash sitting in the bank, then it is being eroded away.
Stocks and shares are dropping.
Pensions are losing value.
Gold and silver prices are falling.
Crypto currencies have nose dived.
UK house prices have risen 10% on average for each of the last 2 years.
Amid the chaos that is unfolding, the UK property market remains buoyant.
Yes, but there is going to be a housing crash. I doubt it! It is possible that there may be a correction and a dip. However, if your house has risen in price by 20% in the last 2 years, then it dips by 5%, or even 10%, is that a crash?
Yes, but interest rates are going to rise again. That is extremely likely, as the Bank of England attempts to bring inflation down. But fear not, it cannot rise to that which we witnessed in the 80’s, otherwise the government won’t be able to service its debt, and the UK will go bankrupt. Then we are all doomed!
If you have a mortgage, then now might be a good time to consider fixing it for 5 years or longer, then you need not worry about what might happen in the next couple of years. There are still plenty of low interest deals out there!
Remember with high inflation your debt is also being eroded, because in time your mortgage will be less in real terms - plus your house will have gained in capital appreciation. Investing in property is for the long term, and there is no better time to invest in UK property.
Don’t wait to buy houses, buy houses and wait!
I’ve managed to build a small portfolio the last 2 years, and I’m now on the look out for investors or joint venture partners.
Let’s see if I can help you, who in turn will help me and see if we can make some great investments together.
As Warren Buffett said ‘be fearful when others are greedy. Be greedy when others are fearful’
The media is going to have a field day with all this negative news, so it’s up to you - join the doom mongers, or join me!