Podcast Summary
Understanding the 18-year property cycle: Educate yourself about the 18-year property cycle, consider releasing equity or selling properties during market crashes or buying back in at lower prices, and make informed decisions based on economic cycles and available options.
During the peak of a property market cycle, understanding the options for releasing equity or selling properties can be crucial for investors. In the podcast, Rob and Rob answered a listener's question about this topic, known as the 18-year property cycle. They advised that before making a decision, investors should educate themselves about the 18-year property cycle by visiting propertyhub.net and exploring the educational resources. Once informed, investors can consider the pros and cons of releasing equity to buy more properties during a market crash or selling their properties to buy back in at lower prices. Overall, being aware of the economic cycles and having a solid understanding of the options available can help investors make informed decisions and navigate the property market effectively.
Prepare for potential real estate market crash by releasing equity: Release equity for long-term financial stability during market downturns, review portfolio, and identify underperforming properties for potential sale.
If you're planning to be active in the real estate market after a potential crash, it's recommended to release equity before the crash occurs. This may require taking on a higher loan-to-value ratio and potentially dipping into negative equity or losing favorable refinancing terms. However, securing a long-term fixed product at a low rate can provide comfort and financial stability during the ensuing turmoil. Additionally, conducting a portfolio review is crucial during this time, allowing you to identify underperforming properties and consider selling them to have cash on hand for future opportunities. Remember, if we follow the 18-year property cycle, there are still several years before major decisions need to be made, providing ample time to prepare.
Seek advice from multiple brokers for buy-to-let mortgages as a expat: Expats facing mortgage challenges should consult with multiple brokers specializing in buy-to-let and experienced with expat applications to increase chances of approval.
Even if a broker initially tells you that you cannot obtain a mortgage due to your specific situation, it's essential to seek a second and even a third opinion from brokers who specialize in buy-to-let and have experience working with expats. The mortgage market has become more flexible, and there are options available for those who may have previously been deemed ineligible. Expats, particularly those without an earned income from an established employer, may face challenges in securing a mortgage, but it's not impossible. Brokers who understand the unique criteria of these products can help navigate the process and increase your chances of success.
More mortgage options for expats due to increased competition among lenders: Competition among lenders leads to more attractive mortgage options for expats, improving their living conditions
The current market conditions have led to increased competition among lenders, resulting in more attractive mortgage options for expats. Previously considered high-risk or high-maintenance clients, expats now have more opportunities to secure mortgages due to lenders' efforts to meet their desired lending volumes. This is good news for expats living abroad and earning rental income. While the situation may not be easy, the availability of these mortgage options can significantly improve their living conditions. Keep an eye out for more information on investing £50,000 in property in our upcoming YouTube video, and stay tuned for the property podcast on Thursday.
