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Showing results for tags 'property cycle'.
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Ed Holdstock posted a topic in General property discussionHello & Happy New Year to you all! I am considering the Buy, Refurbish & Refinance strategy and in this scenario would be using a bridging loan for the purchase (along with my own savings for the refurb). Whilst I know predicting the market is nearly impossible, I would like to be able buy with some confidence that the local market would be in a good position in the short term so I could continue with my strategy and refinance, pay the bridging loan off and pull out some (or hopefully all) of my money. Are there any market indicators I should be looking for? Is there ever a "right" time, or is it best to just go for it as long as the fundamentals are there in my chosen area? I am wondering if anybody with experience in this strategy could give me some advice? Thanks a lot, and happy investing! Ed.
House Prices Since Referendum
Jake Wherton posted a topic in The MidlandsI read this article by Which the other day which confirms my feelings about the local property market over the past couple of years. https://www.which.co.uk/news/2020/02/how-have-house-prices-changed-in-your-area-since-the-brexit-referendum/ I've found the market really competitive and have been outbid on more deals than I care to remember. I usually invest in Sandwell, which has seen a 20% rise on it's average house price since the referendum. I feel the current level of both sale and rental prices are unsustainable in the local area, which would mean we are at a different point in the property cycle. What does everyone else think? Is there a way to prove my theory?
The chief economist for Nationwide today stated that annual house price growth has stayed constant between 2-3% This is directly correlated to the supply and demand for housing staying relatively level throughout. Taking this into account when looking at the 18 years property cycle, we might well be in the mid-cycle dip as properties aren't increasing rapidly in price. This does mean it is a good time to be buying as a property investor. Prices are lower and fewer buyers mean less competition. If we look further ahead with regards to the 18-year property cycle, we will see that the cycle will go through an explosive phase straight after this one. Meaning all property bought now will increase in value within a few years time. This coupled with the fact the base rate hasn't moved yet and borrowing is still at incredible lows, makes for a strong argument towards property investing. For more info, click here: https://www.propertywire.com/news/uk/annual-price-growth-falls-five-year-low-uk/
The Property Cycle
Louise_S posted a topic in Introduce yourselfHi everyone, I’m pretty new to the Property Hub! What a great site! Quick question, the property cycle, I know what it is but I have no idea where we currently are on it, there seems to be so much info that contradicts! Have we had the explosive phase? Half way through? About to plummet? HEEEEELP Lol
Hi guys ! As I've been slightly studying the property market, I'm trying to imagine what it's going to be like in London after 15 years or so? I can hardly imagine the average house prices doubling. As from the investors point of view, the demand will always be there in order for it to build passive income. However, I can't see houses which are currently worth £300,000 being worth £500,000 or more. So for instance the rent is £1,700 that means after 15 years the rent should rise to at least £2,500 or so right? But I don't see any regular family paying such kind of money for the house. Either London is going to be full of HMO's or the minimum wage is going to rise to sky. Could anyone put out a scenario how could we possibly see house prices doubling in London within the coming 15 years? Thank you so much !!!
The 18-year Cycle
T Clarke posted a topic in The MarketHi everyone, As I'm sure most of you are, I'm incredibly interested in the principle of the 18-year cycle in which booms and busts seem to repeatedly recur throughout history with amazing consistency. I am very interested to learn as much as I can about this topic as I find it so fascinating. Does anybody know if there are any dedicated books on this topic? Ideally the deeper and more technical the better! I want to get stuck right into this one if at all possible. Cheers Tom