Property Predictions: UK Inflation

Current Issues Inflation Aug2022

Wed, 8/3 5:01PM • 6:15

SUMMARY KEYWORDS

inflation, prices, high, price gouging, governments, debt, repossessions, inflation rate, costs, property investor, interest rates, business, sitting, leadership, recession, gouging, paying, issues, economy, borrowed

SPEAKERS

Brett Alegre-Wood

Brett Alegre-Wood  00:02

Hey guys, so current issues, we're gonna look at inflation now. And this is August 22. So, yeah, I think inflation.

Brett Alegre-Wood  00:12

We're going to start to see these off a bit now. Okay. I still think it's going to remain high, you know, but wow, I mean, it's it, there's no doubt about it, things have gone up prices have gone up. I mean, I'm currently in Australia. And it's amazing how much price has gone up. But remember, with inflation, a lot of this inflation is it's anticipatory inflation. All right, which means it's not real costs going up that much. It's businesses going, if we're gonna raise our price, let's raise it now this much, rather than doing it this much. And then next month, this much, then next month is much, much. Okay. So some businesses and the other thing is is in a lot of businesses will do that, because they can, they can get away with it, it's in the media, it's not seen as price gouging, it's seen as good business, alright, but what it means is all of us pay more, and potentially, the inflation rate is over caught, if you like, now, it is a real inflation rate. Okay, now it is caught because governments do colocalize figures, but But anyway, but it's probably overcompensating and so what you'll find is, it might go up really quickly, but then it's likely to come down and ease off because obviously, with interest rates, and with things like you know, all, you know, government spending, and all those sort of things that are going on the world economy, US blah, blah, blah, go into recession, you know, so realistically, for me, inflation is not something that's going to be high, as high as it is the 9%, September sets, that sort of stuff. And the real inflation is probably even higher than that. What it's going to be, it's going to be high, and then it's come back down. But the kick in the tail is I do think it will be persistent. I think we've probably an account for I think it's gonna stay double above, you know, double the amount of the expected to the 4%. I think it's gonna be more of the 4% for at least the next year. Okay, because governments need to deflate away, and all of this money that's soaking around through the COVID thing, basically, what's going to happen is that needs to be, you know, soft up, and how will that will be is by running inflation a bit higher, for a bit longer? Yeah, we don't want to. Now, we do want to get it down to 2%. We do want to get it down 100%. But I don't think that is what's going to happen. I don't think that's what the central banks, that's what they, you know, the government's want to happen. They want to run a bit of home or inflation, get rid of their debt, get rid of this money, they borrowed from places and they're not, they're not the same. Let me say this, they're deflating the value of the money, therefore the debt they have, which is fixed, okay, becomes less onerous on them. And that's what they're actually doing. It's not paying debt off quicker, they're still paying the same amount of debt, it's not decreasing the debt. It's decreasing the value of the money that that debt was borrowed. Okay. And that's one of the key. I mean, it's one of the key benefits being a property investor. Yeah. So look, guys, I think for from your own perspective, you got to worry about your biggest concern is, how do you fund all these increases in prices? Okay. And if that's going to be for another year, how do you do that? If if, you know, prices are gonna go up by maybe another 3040 50%? Okay. You know, that's, that's what it could be. I know, we've had, you know, bills go up 300%. And the lesser stuff, that's the stupidity of privatising energy and that sort of thing. But that's also price gouging on companies, you know, call it what you will, but it is a price gouging, you know, most of these countries, you know, it's artificially it's a cartel being, you know, all this sort of stuff anyway, let's not get in that can be another video. All right. But bottom line is that I think we're gonna have next year for the next. So as long as you sit there, and you go, Well, hold on a sec, if my costs go up, 50%. And how do I how do I combat this, and it's not all the costs, okay? You'll find that a lot of costs have already gone up as much as they're going to, okay. So that will happen, stuff will start to come down because the economy will start to slow, the world economy will start to slow, some of those issues around COVID supply will start to go away. So there's some of these issues. And make no mistake, Russia is not the reason behind this. That's all the BS and hype that these politicians give you to distract you from the reality. All right. So take a look at your finances, make sure they're in order, if you can cut back on some of their costs. You don't need to keep some cash ready at hand. Because the other thing is there is likely to be some repossessions there is likely to be some fall in house prices, some fall in various things in certain areas. I think what you're gonna see certainly is the central areas actually will perform very well because even if prices do dip, they'll come back very quickly in the places where the best fundamentals and that's when you get in and get a bargain and certainly, that's what I'm sort of, you know, sitting on my hands sitting here going come on, come on, you know, although nobody wants this. We kind of want this You know, and backup. And that's what we've been waiting for. But we've been self inflicting, you know, harm to ourselves for over a decade now with austerity and Brexit, and leadership that is just horrific. You know,

Brett Alegre-Wood  05:13

we just need some leadership. That isn't corrupt leadership. But anyway, that's a whole nother video again. But inflation, I think we've seen the worst of it. Now, that doesn't mean that next month might not be bad. I think what we're going to see now is the trend will start to even off and then start to come down. And I think, you know, with a recession, looming October ish through March sometime there, that will then really start to bring it off. What we're trying to keep away from is the stagflation, which is where we have high inflation and business activities well down, okay, we don't really want that. We want to keep the business activity up. I mean, the high employment now we've got, we're going into we know we're in a decent position, which is good. So guys, any questions you've got on the pages downstairs or down? I think it is underneath. You can ask any questions and I'll reply with a video on social media. So jump in us whatever you want. Happy to answer anything, it doesn't just have to be on the inflation or interest rates or any of these current issues that are covering. Alright guys, chat later. See you later. Bye.