Podcast Summary
Podcast surpasses crowdfunding target: The Property Podcast raised over a million pounds from listeners, highlighting the strong community of engaged listeners.
The property market continues to be a topic of debate, with predictions of both price rises and falls. However, the hosts of The Property Podcast, Robby and Rob, had some exciting news of their own to share – they successfully surpassed their crowdfunding campaign target, raising over a million pounds in just a few days. This success underscores the strong community of podcast listeners who support their content. Turning to the market update, Robby discussed the mixed predictions for property prices, while Rob shared news about ground rents and a unique opportunity to buy property with no money down using Bitcoin. Stay tuned for the full episode and HUB Extra for more insights and a fun property game.
18-year property cycle and its potential implications: Experts predict significant house price downturn by 2026 based on 18-year property cycle, but not all agree. Make informed decisions based on current circumstances.
According to experts, there is a strong possibility that house prices will experience a significant downturn by 2026 based on the 18-year property cycle. However, it's important to note that not everyone agrees with this prediction, and some economists believe that growth will slow down instead of prices falling. The chief economist of Nationwide, for instance, believes that energy prices, inflation, and other economic factors will cause the rate of growth to decrease. Listeners are encouraged to listen to episode 475 of the property podcast for a more in-depth understanding of the 18-year property cycle and its potential implications. Ultimately, the most important thing is to make informed investment decisions based on current circumstances rather than trying to predict the future with certainty.
Analysts' house price predictions: Take them with a grain of salt: Examine the accuracy of sources before relying on their predictions, especially those with a history of inaccuracies.
While some analysts are predicting a 5% drop in house prices over the next two years, it's important to consider their track record before taking such predictions too seriously. For instance, Capital Economics, who made this prediction, have a history of inaccurate predictions, having previously predicted a 4% fall in 2020 and a 5% fall in 2021, which did not come to pass. Instead of relying on headlines or confirmation bias, it's crucial to do some research and examine the accuracy of the source before making any financial decisions. While mortgage rates may influence house prices, it's essential to consider the reliability of the predictions and not be swayed by sensational headlines alone.
London house prices rise at their fastest rate since 2016, but it's not as significant as it seems: London house price growth rate is below the national average and uncertain government policies add complexity to the market
It's crucial to be cautious when interpreting real estate market news based on headlines alone. A recent report of London house prices rising at their fastest rate since 2016, with an annual growth of 7.4%, may seem significant. However, it's important to note that this growth rate is still below the national average and is a pattern that has been ongoing for several years. Additionally, London's strong performance could be due to its early recovery and the subsequent growth of other areas. Another story regarding the government's potential extension of the right to buy from council and housing association tenants to private tenants also lacks certainty. While the idea has been suggested in the past, it's unclear if and when it will be implemented. The upcoming session of parliament is expected to bring several housing policy announcements, including the abolition of section 21. Overall, it's important to approach real estate market news with a critical and informed perspective.
Housing Market Changes in Manchester: Politicians address housing issues, opposition to Right to Buy, build-to-rent market may slow, cladding crisis ongoing, transformative changes in housing market
The housing market, particularly in Manchester, is experiencing significant changes. Politicians are expected to address housing issues due to rising rents and house prices. The Right to Buy proposal, which has previously failed, is met with opposition from organizations like Shelter due to the loss of social housing stock. In Manchester, the build-to-rent market might slow down, potentially worsening the undersupply of rental properties and increasing rent prices. The cladding crisis remains unresolved, with ongoing updates and unsatisfied residents. Overall, the housing market is undergoing transformative changes, and it's crucial to stay informed about these developments.
Progress in UK building safety and new home financing methods: Developers commit over £2B to fix buildings, new leases have zero ground rents, a building safety levy raises £3B, Bitcoin used as collateral for crypto mortgages
Significant progress has been made in addressing building safety issues in the UK, with 35 developers committing over £2 billion to fix buildings they've constructed in the last 30 years. Starting from June 30, 2022, new leases will have zero ground rent charges, marking an end to the exploitative use of ground rents. This change, which is expected to benefit the vast majority of leaseholders, follows years of uncertainty and concerns over who would bear the cost of fixing safety issues. Additionally, a building safety levy will raise an additional £3 billion over 10 years to address buildings where the developer hasn't signed up or has gone out of business. Although there is still work to be done, the progress made brings certainty and relief to those affected. Another notable development is the use of Bitcoin as collateral for crypto mortgages, allowing home buyers to purchase properties without physically putting cash down. This innovative approach, while sounding unusual, could potentially make homeownership more accessible for some. Overall, these updates represent steps forward in addressing building safety concerns and exploring new methods for home financing.
Bitcoin and Stock Market Correlation Could Lead to Financial Losses During Market Crashes: Individuals with Bitcoin-backed property loans could face massive financial losses during market crashes due to Bitcoin's correlation with growth stocks and potential housing market interventions.
The correlation between Bitcoin and the stock market, particularly growth stocks, could lead to a potentially disastrous situation during a market crash. If both asset classes experience a significant decline at the same time, individuals with Bitcoin-backed property loans could face massive financial losses due to the fall in value of their collateral and inability to access cash equity. Additionally, various countries are implementing measures to curb soaring housing prices, including bans on foreign purchases and targeting central banks. These interventions could have significant consequences, making it an intriguing time to observe the housing market and its related trends.
Learn about property market cycles with Property Hub's free game: Try Property Hub's free game, the Property Boom Phase Simulator, to understand property market cycles and improve decision-making skills.
The Property Hub team has created a free game called the Property Boom Phase Simulator for their members. This game allows players to make decisions in various market scenarios and learn from the results at the end of the market cycle. It's a fun and educational way to understand the property market cycle and improve decision-making skills. Property Hub membership is also free, and it provides access to the Hub Extra newsletter and other resources. The game can be found at propertyhub.net/boom. The team encourages listeners to give it a try, learn from their mistakes, and come back for more. Remember, Property Hub will be back with another episode next Thursday. Don't forget to follow them on Apple Podcasts, Spotify, or wherever you listen for more informative content.
