Podcast Summary
Media's influence on our perception of reality: Consider multiple perspectives before forming opinions, as media bias or skepticism can impact reporting on significant events.
The media we consume can significantly influence our perception of reality, and it's essential to consider multiple perspectives before forming opinions. This week on the property podcast, Rob and the speaker discussed the unexpected 5.9% rise in UK house prices reported by the Halifax House Price Index in February. This figure, which added over £13,000 to the value of a typical home in just a month, is the biggest monthly increase since 1983. However, despite this positive news, it hasn't been widely reported or celebrated in the media. The speakers suggest that this could be due to the media's bias towards negative news or the skepticism surrounding such a significant increase. Regardless, it's crucial to remember that one news story does not make or break the truth. It's essential to seek out multiple sources and perspectives to form a well-informed opinion. The speakers encourage listeners to remain balanced and not let the media sway their beliefs too heavily.
Uncertainty and volatility in the property market: Uncertainty from Brexit has decreased property listings, leading to market volatility, but a crash is unlikely due to low transactions.
Despite the recent surge in house price growth reported by Halifax, there is doubt about the scale of the increase due to the low number of transactions in the market. This volatility is a result of the uncertainty caused by Brexit and the long-term decline in properties being marketed for sale. Contrary to some concerns, a crash in the market is unlikely even in the event of a no-deal Brexit, as transactions have significantly dropped off and most people are holding off on buying or selling unless necessary. The uncertainty and fear surrounding Brexit have led to a decrease in the number of properties being marketed for sale over the last decade, as shown in a graph from the Halifax report. Overall, the property market is experiencing uncertainty and volatility, but a crash is not imminent.
Housing market volatility and recovery: Despite short-term volatility, the housing market is expected to recover and enter a boom phase, but finding deals may be challenging due to a lack of supply.
While there may be some short-term volatility in the housing market due to economic uncertainty, a crash is unlikely. Prices may dip slightly in the first three months following any outcome, but beyond that, the market is expected to recover and enter a boom phase. However, finding deals may be challenging due to a lack of supply. Despite this, the next three to six months could still present opportunities for those who are proactive and persistent in their search. Overall, the housing market is expected to continue its 18-year cycle, with the next phase being a period of aggressive growth.
Persistently follow up on potential property sales opportunities during uncertain economic times: During economic uncertainty, follow up on potential sales opportunities weekly, target those motivated by personal reasons, and be patient as major events influence market sentiment.
During uncertain economic times, it's essential to follow up on potential property sales opportunities persistently. Finding someone who needs to sell due to personal reasons is your best bet, but don't assume they'll take a low offer right away. Instead, keep in touch with them weekly until you know the property has been sold. This strategy is crucial during the mid-cycle wobble, which we're currently experiencing. It's essential to remember that the mid-cycle wobble is a natural part of the 18-year property cycle and that major world events can influence its timing. For owner-occupiers, sentiment plays a significant role in their property buying and selling decisions. They'll wait for positive signs before transacting again. Once a decision is made on significant issues like Brexit, people will start listing their properties again, and owner-occupiers will gradually return to the market. Newbie investors may face challenges during this period due to the uncertainty, but as the market improves, transactions will increase rapidly.
Despite economic uncertainty, property prices will continue to rise: New investors can seize opportunities in a hesitant market, as long-term property price increases remain driven by supply and demand imbalance.
Newer investors may be hesitant to enter the property market due to current economic uncertainty and negativity, but the long-term fundamentals of property price increases remain unchanged. Brexit's impact on the economy is uncertain, but the supply and demand imbalance in the property market will continue to drive long-term price increases. It's important to remember that world events come and go, and their impact on the property market is often overstated. Newer investors may be waiting for the right time, but now could be an opportunity to enter the market when others are hesitant. Ultimately, the property market has shown consistent growth over the long term, regardless of external events.
Stay focused on long-term financial goals during uncertain times: Maintain consistency in investment strategy, view property investment through a long-term lens, and focus on what you can control to achieve financial success.
During uncertain times, it's crucial to stay focused on your long-term financial goals and maintain consistency in your investment strategy. Property investment, specifically, is most effective when viewed through a long-term lens due to its inherent fundamental forces. Although external factors like Brexit can be distracting, they should not deter you from sticking to your plan. Ultimately, you are in control of your financial destiny, and external events are just that – external. Instead of getting bogged down by external factors, focus on what you can control – your actions and your plan. The stock market may be unavailable to you due to less competition, but this can also be an advantage. Remember, the key to success lies in your hands, not in the hands of world events or external circumstances.
Disruptive innovation in banking: Monzo's user-friendly approach: Monzo simplifies banking with easy account opening, real-time alerts, and categorization through its mobile app, making it easier to manage finances and stay conscious of spending.
Monzo, a new breed of online banks, offers a user-friendly experience with its easy account opening process and real-time transaction alerts and categorization. Monzo's mobile app simplifies the process of opening a bank account and managing transactions, providing an easier way to keep track of spending. This can be particularly helpful for individuals who want to be more conscious of their finances without the need for manual budgeting. Monzo is just one example of the disruptive innovation in the banking sector, offering improved customer service and convenience. If you're in the market for a new bank, Monzo is definitely worth considering. You can learn more and sign up at monzo.com. Stay tuned for next week's episode where Rob and Rob will discuss the trend of city living and its potential investment opportunities.
