Podcast Summary
18-year property cycle and current events: The 18-year property cycle is ongoing, and we may be in the mid-cycle wobble with upcoming events, but its length can vary and isn't an exact science.
The 18-year property cycle is an ongoing trend in the real estate market, and its length can vary from 16 to 20 years. Pete, a listener of Ask Rob and Rob, asked about the current state of the cycle with the upcoming events such as the national living wage increase, Brexit, and foreign investment, and a general election. Rob reassured Pete that the cycle is still in effect and it's likely that we are approaching or already in the mid-cycle wobble. The cycle's predictability is not an exact science, and it may last a few years shorter or longer than 18 years. Listeners can continue to ask questions to stay informed and learn from Rob and Rob's insights.
Signs of an approaching economic downturn: Prepare for potential economic changes by staying informed and looking for good investment deals during times of uncertainty.
We are currently experiencing economic uncertainty, and it's likely that there will be a mid-cycle wobble, or economic downturn, within the next couple of years. This is indicated by high stock markets, ongoing Brexit negotiations, and the historical trend of mid-cycle wobbles occurring every 5-7 years. Preparation for this potential downturn could include looking for good investment deals and being cautious with finances. During past mid-cycle wobbles, there have been signs such as rising inflation, falling stock markets, and economic instability. However, it's important to note that these events are not exact indicators and can vary in severity. Ultimately, staying informed and being prepared for potential economic changes is key.
Navigating market instability for investment opportunities: Despite market turbulence, the property market remains stable. Low interest rates, resilient house prices, and disincentives to sell create opportunities for savvy investors, but precise timing can be challenging. Focus on long-term strategy and be prepared to act when opportunities arise.
The current market instability should not be cause for panic, but rather an opportunity for those willing to navigate it. While the stock market may be experiencing turbulence, the property market is holding steady. The lack of available properties on the market, due to a combination of low interest rates, resilient house prices, and disincentives to sell, may create opportunities for savvy investors. However, timing the market to capitalize on these opportunities can be challenging, as the length and severity of market downturns can vary. The mid-cycle wobble, as seen in previous property cycles, may only last a quarter, making precise timing difficult. Instead, potential investors should consider their long-term strategy and be prepared to act when opportunities arise.
Consider investing in property as part of a long-term strategy: Investing in property now, despite market uncertainty, could lead to greater long-term growth compared to waiting for market dips. It's essential to consider investing as part of a long-term strategy, even if the market experiences instability in the short term. Missing out on even a few years of growth could negatively impact your investment potential.
Investing in property now, despite potential market uncertainty, could lead to greater long-term growth compared to waiting for market wobbles or dips. These wobbles are unpredictable and could be minor, with prices continuing to rise. Therefore, it's essential to consider investing as part of a long-term strategy, even if the market experiences some instability in the short term. It's impossible to perfectly time the market, and missing out on even a few years of growth could negatively impact your investment potential. The property market is currently in a growth phase, and prices are expected to continue rising for the next few years. However, this could change as the market cycle comes to an end. For more information on property market trends and cycles, listen to previous episodes of the Property Podcast available on propertyhub.net/podcast by searching for the word "cycle."
