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By Brett Alegre-Wood | [fa icon="calendar"] 30-Aug-2017 00:22:54

Property Investment News - 30th August 2017

This week Brett tackles the negativity around London Property and explains that as usual London will astound. He also looks a specific claim that prices will drop to £70k but who are these experts making the predicts? The answer will probably surprise you...

Video Transcription

Hi guys, and welcome to this week's Property News.

So, this week, I mean it's an amazing...and I'll keep the same theme as the other week where, you know, there's so much negativity about that if you believe it, you'll miss all the actual positive stuff that is there. And I think that this is a classic example. If we go to the Express. And you know what, I tend to go to the Express when I want to find out what negative there is in the market. And some of the stuff I really don't understand what they're saying because, for instance, there is this one: "Property News: Crash predicted by experts would see house prices drop to £70,000." It's like, "What? £70,000? You know, predicted by experts?" And so, I'm sitting there going, "Where are these experts? Experts. Experts." There is no mention of any experts. You know, experts are claiming there is...you know? They are saying, "experts, experts, experts," all around. There is actually no defining of any experts in this article whatsoever, except for this: "Property News predicts market crash could see house prices drop £70,000." Now, hold on, so drop to £70,000 or drop £70,000? Well, actually, when they do the numbers, it's not drop to £70,000. I mean, it's just misleading rubbish, you know? And look, could they? Yeah, they could. Yeah. But the question is, is that a £70,000 house that's now an £80,000 house? Was it a £100,000 house? Was it at the average 200 and whatever thousand pound house? Just rubbish, you know? And so you've got to be really careful about reading headlines. And that's one of the things when you know what media outlets you're looking at, you know whether to sort of be a bit, you know, don't take them on face value. You know, you then go into another: "Mortgage lending falls to 15 month low." It's like, my goodness, you know, this is in July. And you know, fair enough, mortgage lending is falling. So, they're actually...can't find it by who it was he that said this, but basically, mortgage lending is falling and things are slowing down. There's no doubt about that. The market isn't as inactive as it was. Okay. Now, interestingly, where is the market slowing down? Because actually, if a lot of the places that I'm looking at now, and remember, what we're selling now may not be exactly where we are looking now. We start to look 3 to 6 to 12 months out and start building our relationships and start getting in there with developers. And that way you get a sort of sense for where the market is going as opposed to where it has been. And that's one of the key things I think here is, you know, this news is all about what's happened, not what is going to happen, okay? So, there by us saying, "Mortgage lending is falling", and the impression is that, well, if it's falling, therefore, it's going to continue to fall. That's not the case, okay? So, you know, it's interesting. I read an article today, and basically what it was, you know, "Why London will astound again." And the whole basis of this argument is people are running around saying, "Oh London. Oh, I mean, that's terrible, going to crash, terrible." It's got the best fundamentals in the world, you know? There is no better country that I found anywhere and even with all these changes. But yet, we somehow think that because the normal market shifts, and you know, changes, all of a sudden, I don't know, that's a terrible place to invest. Now, I'm not saying buy anywhere. I'm not saying be stupid about it. But what I am saying is London has some of the best fundamentals in the world. Now, it's interesting. I sat at two dinners over the last week. One dinner I sat with a guy who basically told me how terrible London was, and London lost this thing. And Brexit was going to destroy the whole country, and you know, you might as well write off the whole country. And I was like, you know, I shut up. I just didn't say anything because you can't really argue with that, you know, that sort of thing. Now, I went to another dinner where similar, well, actually, a lot more I would say educated guy said to me, you know, he's buying in London now. He's jumping into London, you know? We've been talking about doing business here. Why? Because he sees the opportunity and what's been happening over the last few years, which is exactly what I've been seeing. House prices in London have come off over the last two years, and what I've seen in the last sort of three, six months is they've started to even out, okay, which is great news. You know, "Nationwide: House prices rose for the second month in a row in July after fall in March." What? They're rising? House prices are rising according to map? You know, it's like on the one hand, we're saying we're getting a 70% drop, and on the other hand, we're saying they're rising still, you know? Decade, you know, what's happening to house prices a year after Brexit vote and 10 years after the financial crisis? You know, London house prices remain subdued. They do, absolutely, since Brexit. But the longer term pitch is very boring, and it is, you know? There's so many good things happening. Fundamentals are changing. Money is getting spent. Crossrail, you know? All these sort of things are happening. And that's the stuff that you need to ride the coattails of, the coattails of, yeah? You know, interestingly, and this is an article we wrote about, but you know, a step on the ladder, but at what cost? Micro-homes, the size of prison cells, yeah, some even smaller than car parking spaces, I mean, built in record numbers. And this is a trend. This will continue. Why? Because cities are moving up. They're getting higher, okay, and places are getting small. In Singapore where, you know, we talk about Mickey Mouse house or Mickey Mouse apartments, that is coming worldwide. Yeah. Because, obviously, as the population moves into the center, yeah, inorder to keep prices down, you're going to squeeze the size, okay? More squared footage or less squared footage for you to live there, so you know, unfortunately, you can sit here and you can say, "I don't want that. I want a big apartment," but the reality is it's what you'll probably end up with and what you'll be is squeezed further and further down. So, my advice is, yeah, if you're going to choose to rent for the rest of your life, you're going to be the market's bitch. Yeah, excuse the French. You are going to be beholding to the market. Get on the property ladder and secure a property now, and that way you own it, okay? And that way you get to choose where you live, all right? It's absolutely key. All of this smoke and mirrors about tax changes and Brexit and all that sort of stuff, that's just serving to keep you poor. Be one of the people that owns property, not one of the people that rents it. Now, that doesn't mean that you don't live in a place that you rent, by all means do that, but make sure you're investing. And make sure you got your portfolio built and you continue to build, okay? But there is a good article on our website about that on micro-apartments. Also, it's interesting I find because one of the things I mentioned is we try and get ahead of the market, you know, Liverpool, Manchester, I think great cities. have been performing quite well in terms of price growth, you know, all of the units getting sapped up by international investors, by locals, all that. It's interesting that actually, when you go to Leeds... Now, this is, you know, a secondary city but a Northern powerhouse city, you know? It's a legal and financial hub, you know? There's lots and lots of good things going forward. And that's starting to pick up. So, we're starting to look in there now because what you'll find in a year, two years, okay, all of a sudden, Leeds will be the place to invest. But we'll already be in there, and this is what we're doing. So you know, have a look on and [inaudible] in Leeds, you know, it's great investment, you know, great opportunity, regeneration in that area, you know. Lots and lots of people had negative things to say because the market hasn't taken off yet. But then again, if you go across the whole of the UK , you know, it's...if you're going to invest only where it's taken off, you will miss that. You want to get ahead of the curve and then you'll see that growth, okay? And look, guys, finally, what I want to do is just introduce you to the academy page, okay? If you haven't had a look at it, get on it and have a look, okay? Once you're signed in, this will become the home page of the website. It's constantly updated with constantly writing, you know, I constantly write articles. We're doing videos. We're doing all sorts of things. If you want to know where the property market's at, get on there and have a look at it. All right guys, have a great day. Live with passion

 

Topics: Property Investment News

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