Podcast Summary
No Imminent Property Market Crash Predicted by Fred Harrison: Fred Harrison does not predict an imminent property market crash in 2023, but the trend is expected to continue for the remainder of the year.
Despite recent reports suggesting a potential property market crash next year, according to the creator of the 18-year property cycle theory, Fred Harrison, there is no imminent crash predicted. Ali, a listener from London, had expressed confusion after reading an article on This Is Money that seemed to attribute such a prediction to Harrison. However, upon re-reading the article, Rob clarified that Harrison had not made such a claim. Instead, he believes the property market will continue its current trend for the remainder of the year, but a crash is unlikely to occur in 2023. It's essential for investors to stay informed but also to critically evaluate sources and understand the nuances of the information presented.
Predicting Economic Cycles with Fred Harrison: Fred Harrison's 80-year economic cycle theory suggests the next recession may occur around 2026, despite short-term easing from the COVID-19 pandemic. Stay informed and prepared for future economic downturns.
Economist Fred Harrison has been accurately predicting economic crashes and recessions based on an 80-year cycle, and he currently predicts the next one to occur around 2026. Harrison believes that the COVID-19 pandemic may cause a short-term easing but won't stop the overall economic trend, which he predicts will continue to be upward until the next recession. Harrison's predictions should be taken with caution, as not all economic predictions are accurate, but historically, his 80-year cycle theory has been a reliable guide. It's important for individuals to be aware of potential economic downturns and to prepare accordingly, rather than being caught off guard. Harrison's predictions are not a call for panic, but rather a reminder to stay informed and be prepared for the future. Overall, Harrison's predictions serve as a valuable reminder of the cyclical nature of the economy and the importance of staying informed and prepared for the future.
Hold a property for 6 years to double its value and extract equity: By buying a property and holding it for 6 years, you can double its value, extract equity for reinvestment, and collect rent for passive income.
Buying a property and letting it sit for several years while it appreciates in value can be a simple yet effective strategy for building wealth through real estate. Using a conservative estimate of 5% annual growth, a property worth £100,000 would be worth £134,000 after six years. At this point, the homeowner could potentially remortgage and extract around £25,000 in equity, which could be reinvested to buy another property and start the cycle again. The rent collected during those six years would also contribute to the overall return on investment. This strategy, often referred to as "buy and hold," can be a powerful tool for generating passive income and accumulating wealth over time.
Save for a second buy-to-let deposit faster with rental profits: With conservative assumptions, you could potentially save for a 25% deposit on a second buy-to-let property in just 4 years through reinvesting rental profits
Reinvesting rental profits can help you save for a deposit on a second buy-to-let property faster than you might think. Based on conservative assumptions, you could potentially have enough for a 25% deposit again after just 4 years, assuming you don't spend the rental income. This can make seemingly ordinary buy-to-lets an exciting investment opportunity when you consider the long-term financial gains. Remember, if you have any property-related questions, you can send them in at propertyhub.net/ask. We'll be back with another episode on Thursday. Stay tuned!
