I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.................
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.......
Housing prices going down is a good thing. There's thousands of people that can't even dream of buying a property, but all people like this care about is their profit margin. Millions of people stuck in the cycle of renting to people like this 🤮
Could not have said it better! People like this are adding more people to the pyramid scheme of property, so they can push up the prices further. on paper this guy might have millions the truth is he doesn't own any of it until its been paid off to the bank, don't forget people you don't own it until you have paid off the last payment, fall behind on your payments and see how the bank takes it away from you.
@@deebrown7160 currently your at the mercy or these ruthless landlords that drive up the rent for no other reason than they are greedy cnuts. nothing wrong in renting, if there was a real framework to protect the tenant.
@@deebrown7160 because most landlords are amateurs who just want money & have no interest in fulfilling their obligations, as a landlord? Landlord isn't a profession....
My daughter has been trying to buy a house for ages but can’t get a look in. Estate agents have been so arrogant they know they get higher offers from people like yourself who buy property to rent out. She is an ambulance technician trying to buy a house closer to her place of work but estate agents just going through the motions of showing the house and not interested in her. She said it looked as if they had already received an offer. Then this lady turned up in a big fancy land rover and estate agent nearly broke his neck to chat to her. One agent even laughed at my daughter because she offered slightly less than the price. Estate agent stopped laughing and said we only accept offers way above the asking price now. So I don’t know you but people like you are denying young people from getting onto the property market.
I understand the frustration Brian. We help people get on the housing ladder not the opposite. First time buyers have huge advantages over property investors. 1. First 3% or even 4% stamp duty surcharge. Plus lower rates of stamp duty anyway on first property. 2. Home buyers can get 95% mortgages, property investors cant. 3. As a property investor I am always looking to buy a house and add value. A new build that I can do nothing to rarely interests me. So whole swathes of the market are for First Time Buyers (FTB) and no investor worth their salt would want to compete. 4. FTB will almost always offer more than an investor as they are buying with their heart not their head. I will rarely have reason compete with a FTB. 5. Barclays offers a "Family springboard mortgage" which essentially means the FTB needs no depsit and can get a 100% mortgage. Investors can not access this funding. 6. Mortgage rates for FTB are lower than for investors through a limited company. I could go on. I am sure you get the picture. The right deals are massively stacked in favour of FTB. If you or your daughter want to email office@touchstoneeducation.co.uk copy/pasting this then the team can set up a call with me so I can help your daughter get on the housing ladder. I have 6 children. I am an investor but I am a Dad first. Good luck. Paul
@@PaulSmithTouchstoneEducation Thankyou for that , I get a bit passionate about my daughter. She’s had a rough ride upto now and just want to see her happy. She’s saved very hard for a deposit and having no luck at all. Thankyou for your kind helpful reply
You are right Brian, these people are vile leeches on the young who now face a lifetime of owning nothing. They will crash the banking system like they did before with their greed and we will all pay in the end.
Estate agents are just like that - they are horrid to everyone! There has been a huge shortage of houses coming on the market lately. It has always been tough to get on the property ladder. We could never think of getting a new house and tended to get houses that needed lots of work on them which we did ourselves. BTL now cannot rent out houses with low insulation values so an old house with single glazing would be no good for BTL now. I really do not think that BTL pays top dollar for houses. We have to buy cheap to make it pay so will not be pushing up the price. But it also has to be almost ready to let as we cannot afford to have it stand empty with a mortgage on it. I would check different areas if you can as where you are may just be a hot spot perhaps with a uni, other areas may not be so sought after for renting.
If thats where society wants to go then fine. "My right" to whatever costs money.... not sure being given a free house is a basic human right but if thats the way society goes then fine...
@@PaulSmithTouchstoneEducation Maybe not hate then. But when people who should know about financial affairs use it I find it annoying as they should really know what a PLC is.
Long term yes 100%, But I remember 30% to 40% price drop where I lived in milton Keynes and my clever mates who bought property investments losing everything, not just 40% of their money , mortgaged property is fine when prices are going up but if it drops just after you buying it you will need to keep mortgage provider happy or lose your deposit and fees and house and still owe them money. Add to that the danger of tenants not being able to make the rent etc and yes right now it seems very dodgy.
You only ever lose money if you sell which is what those that panicked in 2008/9 did. According to the ONS price drops in the worst recession ever recorded were 15%. As long as rent covers mortgage with a profit why would you sell? As soon as prices fell the government dropped interest rates and actually the landlords that didn't panic made more money than ever. Understand if you feel it seems risky, everything in life has a risk. "Fortune favours the brave". Good luck.
@@PaulSmithTouchstoneEducation my friends were repossessed and had no choice in the matter, no fault of their own apart from buying the house when prices were in a bubble, bank decided they wanted 30k because mortgage was now more than the house was worth, he didn't have it, bank then sold house for 60% of the price he paid and he lost all his money and bank still chased him for the shortfall. Another one had bad tenants didn't pay and wrecked house, he could make the mortgage payments so again repossessed. Yes they were unlucky but it happens a LOT . I owned a btl for 10 years, 3 different tenants and 2 different agents, 1 agent stooe 6 months if rent, the other one was just a bit useless. 2 out of the 3 tenants fell behind on rent and left the house is a disgusting state causing thousands of pounds worth of damage during covid when I couldn't get anyone to do the work it was left empty for 7 months costing me a fortune. Its no picnic. I do believe we are in bubble territory and that's the big risk again.
@@FlyingFun. Very sad to hear Nigel. Your friends must have had commercial mortgages? Friend of mine has £23m of commercial property. Paying mortgages no problem at all. Bank decided they wanted £3m cash within a week, complete nonsense and they ended up repossessing. I help him sue the bank and he got more than £10m compensation. Knowledge and network is key to making sure the banks can not abuse you. I understand now why you say 40% drop as it was a repo sale: that does not reflect market rates. It does happen sometimes that tenants take the mickey. Being professional, trained and on top of the situation will stop this 9 times out of 10. Not trying to be clever just sharing some people that come to Touchstone have had similar experiences. Serviced Accommodation has no tenants (guests with zero tenancy rights), commercial property on FRI leases = zero landlord responsibility, rent 2 but ... I could go on: property has something for everyone. I do sympathise deeply. Why not give property a second go, learn your lessons and make money this time? Knowledge. network, support and accountability. If you believe we are in a bubble (I disagree as you know) then rent 2 rent, deal packaging and many other strategies mean you are never impacted by any bubbles even if they exist.
@@PaulSmithTouchstoneEducation thanks , I'll defo consider it , like you say if we had more knowledgeable people on our side it would help a great deal, I defo dont want to br a hands on landlord and would need trustworthy agents managing it.
I’ve recently purchased our first property in May 22. I got 2.69% on a 5 year fixed. The property is in East Midlands, it was a new build in 2018 and sold for £295k. I paid £349k. I’m glad to have fixed at that rate but I’m worried about property prices crashing. I’ve always thought its best to have time on the market than trying to time the market. Do you think I made the right choice? Or should I have waited for prices to drop
Relax... you have done a great thing.. time in the market not trying to time the market.... 30 years from now this will be a cornerstone of your wealth.
If property is as safe an asset class as you suggest, then how come the rises since the financial crisis have had to be fuelled by very significant state intervention (endless demand-side measures), and how come this state intervention gets conspicuously and conveniently omitted from your analysis?
I shared my analysis openly AM.. do you mean the 2008/09 financial crisis? How about the period from 1845 (when the bank of England started reporting house price rises) until 2008/09. I believe we are heading for the largest world wide financial crisis yet, caused by crazy QE/print and spend. Inflation is 10% plus and this will further fuel house price rises... in my view of course.. lets just see what happens. Out of interest how did your property investments do the last 15 years or so? good luck.
@@PaulSmithTouchstoneEducation Many thanks for your response. Yes, I understand that your video doesn't just pertain to the situation post 2008/09. I'm merely pointing out that rises since the 2008/09 financial crisis have in no small part been driven by demand-side measures introduced by central government (or market parties in conjunction with central government), e.g. Help to Buy (various components over the 2013-2023 period or stretches thereof, including equity loans, mortgage guarantees, New Buy, Help to Buy ISA, Lifetime ISA), Funding for Lending, stamp duty holidays (2008-2009, 2010-2012, 2020-2021) and reforms, shared ownership and the First Homes initiative (2021 onwards). From the investor's point of view, the net result is the same: house price inflation. From an analytical point of view, however, any analysis of the prospects for the market can't be complete without acknowledgement of the contribution made by artificial stimulus and the potential effects of the government continuing or discontinuing demand-side measures. I agree that we're heading for another financial crisis. In that regard, I'd suggest that factors such as QE are inextricable from the government's commitment to inflating house prices because we as a nation are obsessed with making the number on the price tag go up at all costs, even if that means the value of the number on the price tag must come down and even if that means creating another bubble fuelled by taxpayers' money and 'printed' money. It's a precarious situation, but it's one that has been in the pipeline for the last 15 years; the situation in Ukraine is just a catalyst.
You might of course be right Paul. I have been hearing this since 2012 or so. Since then house prices have doubled. What specific reason makes you think house prices will decrease soon? For me all the fundamentals show further increases. I predicted in December 2021 8% average for 2022. I am still confident.
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The key is demand but also interest rates. Low rates artificially increases house prices. The U.K. has most mortgages on short term rates, mostly 2-3 years fixed. That means interest rate rises have an almost immediate impact on home owners. If inflation does rise much higher many who purchased on short term deals may struggle to keep repayments. Wage growth is poor in general. What I am saying is at some point there will be a breaking point. When that is I don’t know. I also wouldn’t expect a crash, housing doesn’t crash, it’s a slow process when correcting. But it is possible to have a 10% correction
Certainly agree 10% correction is possible David ... will prices go up 30% first then 10% down in which case the "crash" is plus 20% from current levels?
my current fixed rate (1.9%) mortgage is expiring in August. I am not sure what to do next, if staying with a variable rate until the inflation settle or choose a high fixed rate for 2 years. What are you thoughts?
Hi Paul, watching this 6 months after the video was made by you. Could you please do a video on strategies for people with BTLs as rates gone up to 7 percent from say 1 or 2 percent. What would be the best way forward for anyone with BTLs? Sell up as outgoing will be very high once the fixed term rates come to an end
I have had dinner in their house... long time ago now though... do you remember Gerald Ratner lost his fortune after a mis-judged speech? If we draw on this lesson we should stop talking? What is your point Nick?
If I'm really honest?! I don't think I could handle the pressure of all those mortgages and keeping up with the properties as I would have to completely immerse myself in proiperty and do nothing else so I wouldn't be able to do all the projects \i weant to do -eg build my own boat! but that's just me, am I wrong?
Remember 17% interest ? Never has the value of money been so little, A reset is coming and being in debt could mean that you are in negative equity as were hundreds of thousands in the crash in 1980. Giving the keys to the banks and still in debt. Just to remind you that cycles have peaks and troughs.
Of course I remember 17% interest Huw. If that worries you join the 80% of mortgage holders on long term fixed rates. You can get a 25 year fixed rate if you want. I agree money is worth less and less (inflation) which is great if the money you use to buy the property is a mortgage (ie banks money becoming worthless) meanwhile your property value and rents are going up. Happy Days! If there is a reset why would hard assets (like property) not shoot up in value? Just like in the Wiemar republic...
The value of property is the monthly affordability, not its price. When jobs and income are unable to sustain monthly payments then no matter what the cost is it makes property value drop. No property is worth 3/4/5 + hundred thousand if you had to put down 50% and only borrow.3 of one person’s income. It’s cheap money lent out to people on unrealistic multiplayer scales. Greed and brainwashing does the rest. A home is to have for a normal life, not being led into the debt trap and lose everything by people who have got luck and support . All I want to say is it works for some people and destroys others, I have been in construction for 45 years and my experience is wait until things are clear.
There is one thing that would reduce the value of property - mass death caused by war or plague or some other disaster. I guess we have to plan in hope this will not happen, but we do have some historical precedents to consider…🤔
That is what I call my "meteorite question"... what if a meteorite comes through the roof in the next 5 seconds and kills us all? well we will all be dead.... so nothing to worry about! Your point that many people may die... in the context of the world, possibly, somewhere. If that happens somewhere else, generally this causes more people to want to move to the UK. So house prices in the UK go even higher.....In the UK could this happen? .. only by something very extreme like nuclear war. If this happens then see meteorite question.
@@PaulSmithTouchstoneEducation Hi Paul, i will keep it brief. I was a joint mortgage holder on a 3 bed end terrace in Derby, my good friend passed away from cancer 4 years ago so i am now the sole mortgage holder. £94.000 outstanding on an interest only mortgage. I lost my case with the FSCS on a possible miss sell on time. I am 56 registered disabled finally. Can i get a mortgage or should i get a lifetinme mortgage? House has equity. Dabs from Derby. If you want my email let me know?
@@dabstheleo1967 almost impossible for me to give advice as I do not know what you are trying to do. Please make sure you are clear on your objectives, despite your challenges you are financially way better off than most. Use that wealth to achieve what you most want. Good luck.
@@PaulSmithTouchstoneEducation Hi Paul, i am trying to keep the house as the mortgage ended in 2020. Landmark Mortgages have been very understanding. I have a respite until 24/12/22 then they need to know how i will pay back the £94.000. Can i get a mortgage if my income is UC and PIP? Dabs from Derby
*You actually need to read the small print of your mortgage which obviously you haven't. Banks have a hidden right to rewrite your mortgage when the need arises. Do you honestly think that banks will give you a loan of £100 @ 2% whilst inflation is 9% , or 15% over a sustained period of time? No. However if interest rates become static , what about if unemployment goes up as inflation puts many companies out of business. And then ownerscannot service their debts. Well houses are going to have to be sold in order for the banks to recuperate their own capital. That's when houseprices will go down. And your own house price will collapse then even if you are paying your mortgage. When this continues , that's when it gets into negative equity. The basic rule is this: you cannot build wealth on debt.*
Hi Online, I think your model for banking operations is a little dated. Banks do not lend capital given them by depositors. We left the gold standard a long time ago. I have to disagree with your final statement: massive wealth is built on debt. Bluechip PLC's talk about WACC for instance:. Average cost of debt and shareholder funds. Apple and all the rest grow by receiving investor funds and debt that they then use to create a return. Good luck.
@@PaulSmithTouchstoneEducation *Hi. I'm not trying to publicly shame you. I think that you are generally very erudite and sincere in what you are doing. First of all , banks DO lend from deposits. Its called FRACTIONAL RESERVE BANKING. Admittedly this ( customer deposits ) is a part of what they do. If for instance all depositors collectively place a total of £100 in the bank , about 97% of that will be lent out to customers for borrowing. Then when borrowers spend that 97% and it is paid into banks by recipients , that about 97% of that 97% is lent out again to new borrowers. This cycle is repeated over and over and over again. In fact it would not be far fetched to find that £100 of customer deposits are supporting £1000 worth of debt. THIS REMAINS THE MAIN BUSINESS MODEL FOR 99.9% of the banks globally. This is actually how credit is created ... totally out of thin air. I'm struggling to understand how what I have said has suggested that this has anything to do with the gold standard. In fact it is because we are not based on the gold standard thatbanks are able to lend in the manner I have narrated above.* *Admittedly since Lehman Brothers central banks around the world have lent banks trillions and trillions to reflate their balance sheets. This keeps the banks afloat but the liabilities of the banks have been transferred from banks to sovereign governments. Most central banks are totally bankrupt. If you don't believe me Google Professor Laurence Kotlikoff , a professor of economics at Columbia University who for years has been warning that the USA's real debt is around $250,000,000,000,000 ( Two hundred and fifty trillion dollars ) ... I stand to be publicly shamed by all your viewers if I am proved wrong.* *As I have said you cannot build a sustainable business on debt. Yes companies do use WACC and other metrics. But if you consider the fact that the bond markets are said to have a derivatives exposure to the tune of somewhere in the order of half a quadrillion dollars. Yes QUADRILLION!!! That's a 5 with 14 zeros !!! This is not speculation. This is fact.* *The reason why stock markets have been rising incessantly over the last 20 or 30 years is because governments are simply printing money and that money , especially during the time of Lehman Brothers, was given to banks who in turn use it to "invest" in the stock markets. Price appreciation of S&P , Dow Jones , Nasdaq , FTSE is directly correlated to how much money the government prints. In case you don't believe me do your research into a group called The President's Plunge Protection Team. The President can and does authorize them to buy up shares on the stock market any time theres a dip. So the buoyancy that you cite for Apple etc are all based on debt ( money printed from thin air ). This false sense of security flows throughout the economy , including the housing market. When the tide turns , there will be absolute mayhem. Warren Buffet once said : "Its only when the tide goes out that you can see who has been swimming naked"* *So in response to your comments that my business models are "dated" , respectfully Sir , I think that you are giving "advice" without having the full picture. In the coming collapse ANYTHING based on debt will have a counterparty risk. That is not the best way to hedge against risk , with more (countrtparty)risk.* www.google.com/amp/s/www.cnbc.com/amp/2018/09/08/boston-university-economics-professor-laurence-kotlikoff-wants-to-change-your-retirement.html
You didn’t experience a property price crash because prices in Scotland weren’t as ludicrous as the south east of England. In the outer suburbs of south London 1930s 3 bed semis are over 600k , the average wage in that area 30k , these prices can’t continue. Once the government/bank of England stops printing money to prop up the economy, land lords won’t have access to cheap money to further inflate property prices.
@@PaulSmithTouchstoneEducation They are and have been addicted to printing money for over 2 decades . Pumping that money into the economy causes inflation. Inflation is normally quelled by raising interest rates to dampen demand , but they just moved the goalposts to pretend the economy was ok. This caused asset prices to soar ie houses, because money was cheap and easy to borrow . This is coming to an end . I just feel sorry for the people that have borrowed large amounts just to get on the property ladder.
Hi Greg! What we would highly suggest is you take a look at our Wealth Through Property 2-day training? This really is the A-Z manual on what we do and what can be achieved with property! Click the link to book your space (the events do tend to sell out well in advance and are all online) shrtlnk.co/YGPwb Let us know if there’s anything else I can help you with? 😊
Do you think it is wise for me to release some equity and use that to "buy a buy to let" property? I hope the answer is yes, because I'm wanting to go outside of my comfort zone and go for it.
definatelly im doing the same remortgaging all my 7 properties to go to the next level i m a millionaire through property hopefully i can know buy land and build no looking back after that
I have a friend called Omar and he always wants a property crash and takes the Micky out of me for having buy to let’s saying we going to have a massive property crash, it will end in tears, we going to have sky high interest rates, we going to have high inflation, your houses are liabilities not assets blah blah, I felt very satisfied showing him this video
Thank you for watching Khanage! Glad it made you happy. More importantly glad your BTL are making you money and you are putting roofs over peoples heads. Well done you.
Most people think like you K Crypto. I never intend to pay off my home mortgage: the money is too cheap and I can use it to make a lot more money. Good luck. Paul
We're in a de-pop situation so it won't be 70 mil for long, you arnt taking into account thex4th industrial revolution AND PROPERTY, please advise with that in mind.
Population is going up Alison not down. World events (eg Ukraine, rising sea levels) could very easily accelerate the rate of UK population growth. The 4th Industrial revolution (AI, Quantum Computing, Genetic engineering, The internet of things etc) will of course impact jobs: I believe 30% to 40% of all the jobs humans do now will not exist by the year 2030. What will not change is whatever we are doing we still need homes to live in. Work will be ever more decentralised and home working 100% the norm. Space is our homes ever more precious and valuable. The 4th IR will put even more pressure on property prices. Roughly 1 billion people will be displaced medium term by rising sea levels and another 3 billion are lining up globally to improve their lifestyles. Thanks for your great point. Paul
I remember telling someone I USED to work with my plans for buying multiple houses and he said to me “You can’t buy multiple houses you can only have 1 mortgage” and I knew right then to kill the conversation as there was no convincing this gentleman otherwise.
A lot of people speak very well but they are really full of shit. The amazing thing is when you don't speak English the way an Englishman does, they think you are stupid until they realize 10 or 15 years later that you own the business in which they work or own the house they are renting. Life can really be interesting. 🤔
Ha ha ha ha ha ha 😂 😄 😆 small mind thinking from small people. Don't tell anybody your plans. Stay hush and do it for yourself. Fun fact you can also get first time buyer deals in other countries also.
Used to think like the solicitor...Now I think like the banks and gamble as much as can on the long term property market. The wealthy get wealthier by borrowing against their assets.
In the North of England- I bought a new build 2007 which dropped 35% within 2 years.... 10 years later it got back to original value. I wasn't the only one!
Hi Christopher.... thank you for sharing, averages by nature just that: averages. There will be somebody on the other side of your average that has made even more money than you. You are saying by 2017 it got back to original value.... that was 5 years ago. How much has it gone up since then? If you did not sell you did not take a loss. If you rented it out you have made rental profit for 15 years now. How much deposit did you put in and 15 years later what is your total (rent plus capital appreciation) so far on that deposit? Thanks for your comment.
@@PaulSmithTouchstoneEducation Hi Paul. Do you think rents will increase in order to offset diminishing yields? Or will it take that elusive correction to make that happen?
@@lordsummerisle852 Great question. Rents are rising and will continue to rise. What else can happen? Massive supply shortage and huge demand. Our yields are going up on a month to month basis from rent and most of our mortgages are fixed so rate rises are not relevant for years. When you add the huge capital growth our total returns are the highest they have ever been.
@@PaulSmithTouchstoneEducation me to if your innit for the long haul you cant go wrong i bought my first property 15 months before the crash in in the 80s i rented all rooms and slept on the couch till this day i still own it and have remortged to buy other property you just need staying power and b.......s
@@leonreece1169 amazing! We would highly suggest for you is to take a look at our Wealth Through Property 2-day event training. It is the A-Z manual on what we do and what can be achieved with property. You may click here to book your seat>> shrtlnk.co/0ObdV. Let us know if there’s anything we can help you with :)
You wake up and discover you were dreaming... seriously interest rates can not go to 15%. The government could not service the national debt and the UK would be bankrupt... even the most bonkers of politicians would not bankrupt the UK... I have lived through rates higher than that so I do know what to do. I can not see it happening this time for many reasons. Good luck.
Price crashes and recessions aren't caused by lack of demand. There's always been a demand and shortage of housing. The 'thing' which causes a drop in house prices, is the availability of finance, and the affordability of finance. And this is how all recessions are used to mainpulate the money supply, and subsequently rob the people of their wealth, of their assets, and now as we'll see, their savings. If you choose to buy now, best of luck, it's your journey, and I'm sure some people will do okay. But a word of caution, if you haven't seen it already, go and watch the film, 'the big short', and then see if you can see any similarities in the world today. Maybe make your plans based on that, rather than marketing, and cash back mortgage offers.
Hi Wayne, I agree "The Big Short" is a great film and a must watch for property investors. 2008/2009 was very different to previous recessions. Bankers seem to love inventing new ways to break the system! This time it is a massive QE bubble. Let's see what happens. I am backing physical (ie non-cash / equities) assets. Specifically UK property and gold. Plus I am backing bitcoin. How do you think people who have created wealth should protect it? I agree with you inflation will rob you of your wealth if you leave it in cash.....
Well said, personally I think it's terrible advice to buy now at inflated prices and interest rate rises iminent. Very few economists are predicting that house prices will continue to increase at the current rate, at best, prices will flatline. Look at the US rates and how much they have gone up in the last few months. I expect guys like this who may have lots of cash may take advantage of the crash.
Karl Marx once said ‘landlords reep where they never sewed’. ❤ I’d love to have a passive income but I believe that income should be earnt. As a renter, I have experienced the lack of care that property owners have for the people living in their domains. It’s really a selfish market. I’d rather work flat out in a cafe on minimum wage than receive a lazy income by indirectly enslaving people worse off than me. God bless and I hope you see the light ❤
honestly I’m so fed up with renting… but I don’t have much for deposit and too old to having a mortgage… even me & hubby have a good salary no loans no credit card… but I don’t think so we could have one these time… we living in south west… 🇬🇧
Property is the best investment 👌 you can ever make. I've had over £335,000 in rents over the last 25 years. Plus the value 👌 these days.🤭🤭very interesting video 📹 of yours 👍👍👍
If interest rates in the UK increase from the current 0.75% level to their long term average 3.5% then mortgage rates will increase by 450% undermining this extremely interest rate sensitive market - I wud rather invest in a trailer park than residential British Property🤓
Hi David, the MPC can not do this that quickly as it would directly and massively impact the cost of servicing the national debt. It would lead to the UK defaulting which will not be allowed to happen. Maybe by 2030 rates could hit 3.5%. Of course it depends on your reference frame, for long term UK mortgage rate average I would say it is closer to 6% not 3.5%. BTL lenders typically use an assumed 6% mortgage interest rate and 145% debt service cover (ie rent being much higher than mortgage payments) so even at 3.5% not an issue assuming you are holding the property long term. Of course each to their own. Good luck.
@@PaulSmithTouchstoneEducation Thanks for your wisdom - let’s face it what really caused the property boom was interest rates falling from 15% to 0.5% making interest only mortgages 30x cheaper - those days are over 🤓
@@davidrouth9901 partly David but also lack of supply, massive demand, relative volatility of other asset classes... and all the other elements I tried to cover in the video... yes interest rates dropping certainly helped.
I hate property with a passion - what made Britain a monumental super power was industry and science and not people sitting on their fat arses and assessing property gains🤓
Property prices have gone up over the past 2yrs yes....but property prices have infact gone up over the past 10, 20, 150 yrs. 1000s of yrs and will continue to. Having said all of that a correction in the short term will happen and then the upward trajectory will return again. Just take a look at the charts for the past few decades.
Why on earth do you *want* a property crash? If a crash arrives, then it's likely that interest rates will rise. So that supposedly cheaper house will cost you more in higher interest rates.... Don't expect some sort of windfall. Prices are expected to ease by around 5%, but that's about all.....
fundamentally speaking, prices are not in line with wages, and continue to depart from reality with every passing decade. People like yourself Paul have benefitted from generational position, not 'good investments' per se, i.e. you got in at the ground floor of right-to-buy and the 'great financialisation' and have never looked back since. Landlords like yourself prey on the suffering of others, and one day you might find your conscience speaking to you with a tone you've never recognised. In the mean time, the politics will change with the next generation and these contingencies that you label 'fundamentals' will change with it (green belts, landlordism, population growth, public housing, material price, housing density etc).
how anyone can tell us we’re better off than 40 years ago or we live in a society where we have choice or more choice than in previous times is either talking about the amount of channels available on screen or take away food options compared to 2003 or relying on the ignorance of those whom weren’t around long enough to know different. how on earth can a so called wealthy nation call itself a free country when something as fundamental as housing is an option to only those over 35 or more unless they’re extremely well paid or from those with the means & when that choice means aspiring to be tiny tycoons or go without . those without - however hard they work whom simply expect a roof over their heads for rent at a fair proportion in respect of the average expected or paid income as their parents & grandparents could enjoy but instead are the unwanted or unimportant bi product of one political ideology / business model hatched 45 years ago . that’s how I see it !
Rising fuel prices , food prices , energy prices , insurance prices , property prices … in general everything has gone up. Wages have stayed the same . How do you expect people to afford the average home to either buy for themselves or rent out? There is a shortage of houses in most areas . A shortage to buy or rent . Great for you with a property portfolio, but not realistic for the vast majority of people who work forty hours a week , with no money left over for investment , solicitors fees , deposits etc etc . Your living in a dream world . All you’re doing is talking about you , how great you are going and how you manipulate things to suit you . Most people are struggling to put food on the table and get by. Give it a rest mate. If it were that easy everyone would have done it . Your in a privileged position and using it on UA-cam to help yourself .
Hi Will. If I am in a privileged position or I am "lucky" I have one thing to blame: hard work. Of course it is not easy that is the point. Anyone can do it, I started with nothing. I am talking about how those with work ethic, determination and a dream can achieve massive results. I want to help everyone that accepts personal responsibility and are willing to learn. Good luck on your journey.
@@PaulSmithTouchstoneEducation I too am In a good position through hard work . But half of everyone’s life choices are luck . Lots of people work hard and don’t get the breaks . Lots of people don’t get the opportunity to work hard due to factors beyond their control . You are on a good place , but not everyone can get there . Circumstance have changed . I have no doubt you had a couple of breaks, good networks and the initial cash to start , however it’s not achievable for all. It’s very simplistic to suggest it is . Not everyone can achieve what I have , and I wouldn’t begin to tell everyone they can all do it . There are a lot of variables and uncontrollables, If their wasn’t then what a lovely world it would be. If ifs were what’s, and pots were pans , there’d be no work for beggars hands . I wish you well in all you do . I’m sure if you met neil Armstrong and he told you all he had to do was a bit of study and sit in a rocket ,you’d have to be an idiot to think it was that simple . Funny how your altruism also raises your profile and benefits you somehow . I see a narcissist with an ego, not an altruist that wants to help his fellow man . Not all success is about money . Funny old world eh? .
@@Morten_Nielsen1979 first one was The Serviced Accommodation Success Manual. Then The Property Investment Survival Manual then most recently Wealth Through Property. Hope this helps?
Re: crashes and corrections in the stock market and property market. A 10% 'correction' in the property market is much worse than a 20% 'crash' in the stock market, because in the property market I have invested someone else's money, not my own. Take £1M invested in property, and I sell the asset after the crash. I now owe the bank £100k, whereas in the stock market I have only lost 2 or 3 years interest.
And finally, you insinuate that financial experts not invested in property are in no place to question the future of the property market if they don't own property themselves. In fact, it's exactly the opposite. Would you trust someone prophesising a bear market in a commodity if you discovered that they maintained a significant investment in that commodity? Of course not, that would make them a fool or a liar.
It isnt going to drop. The issue we face here in Cornwall is that prices are up by more like 40- 45% in just 2 years. For example we had a 20% deposit for a nice house now I can't save fast enough to keep a 20% deposit for even a medium sized flat. It's the rate of rise here that's doing us in. The fact that professional property investors are still offering those increasing prices tells me that we are not near the price peak yet.
Mixed emotions on this one for me Dan: I agree with you we are nowhere near the top and there is far more money in the world than there was pre-pandemic (QE printing) until that flows through prices will rocket. Clearly I sympathise with anybody that this stops from getting on the housing ladder. Why not go for a 95% mortgage? Or at least a 90% mortgage? Do whatever you have to to get into property is my advice.
@@JJ-tb9cq I replied to Brian below who had similar concerns. This is a copy/paste of what I said to Brian: "I understand the frustration Brian. We help people get on the housing ladder not the opposite. First time buyers have huge advantages over property investors. 1. First 3% or even 4% stamp duty surcharge. Plus lower rates of stamp duty anyway on first property. 2. Home buyers can get 95% mortgages, property investors cant. 3. As a property investor I am always looking to buy a house and add value. A new build that I can do nothing to rarely interests me. So whole swathes of the market are for First Time Buyers (FTB) and no investor worth their salt would want to compete. 4. FTB will almost always offer more than an investor as they are buying with their heart not their head. I will rarely have reason compete with a FTB. 5. Barclays offers a "Family springboard mortgage" which essentially means the FTB needs no dep0sit and can get a 100% mortgage. Investors can not access this funding. 6. Mortgage rates for FTB are lower than for investors through a limited company. I could go on. I am sure you get the picture. The right deals are massively stacked in favour of FTB. If you or your daughter want to email office@touchstoneeducation.co.uk copy/pasting this then the team can set up a call with me so I can help your daughter get on the housing ladder. I have 6 children. I am an investor but I am a Dad first. Good luck. Paul"
@@PaulSmithTouchstoneEducation I have the opposite problem. I saved a nice deposit since living at home for 10 years spending little. Since my gf can not work the household income is not enough to compete with couples buying together. 4.5x is what they will lend me so almost £100,000. The cheapest terraced houses start around £160,000. New builds are £200,000 plus. As a solo buyer you need to earn £35,000 to have a chance to compete. How many people under 30 achieve this? Id guess 25% at most but more likely 10%.
I hope ther is a big crash in the housing market the prices are disgraceful. My mortgage is payed off so don't have to worry any more about intrest rises. I have 4 kids who will probably never get on the housing market. Cut down imagration then that should cut down demand Al though nothing against immigration just the numbers. How will we ever catch up while so many people are moving here
Totally agree. There will not be a price 'crash'. Maybe it will plateau or increases will be low but there will not be a crash. The shortage of decent housing, and housing in areas where there are jobs will always ensure there is demand. Add to this the increasing population - though I feel this will decrease as the increase is mainly through immigration , not babies being born. I think you can make a mess of buying a property as an investment, but it's not easy to do !
Question - get on the property ladder as soon as possible for a 1 bedroom apartment (approx £180k) in a high appreciation area, or, wait 1-2 years to raise a much bigger deposit (+£15-30k) and a substantially higher salary (+£30k). UK buyer here.
Depends on your current situation outside of finances and what you are happy living in. It costs lots in stamp duty and other fees to move later so what would you need in 5 years time?
This was so helpful, I live in the South east and i'm currently in negotiations over a buy to let property here and my family have discredited what i'm doing by saying taking mortgages and investing in property (before the crash XD) is the stupidest thing I can do and i'm throwing my money away. My genuine belief is that (in the UK) property prices will never go down (on average), year on year. Its a much safer and economical investment than stocks or savings accounts. I'm new to this channel but its very helpful, I have liked and subscribed.
Nothing is ever safe. Building a portfolio of buy to lets is fake money, you don't own the property the bank does and when the crash happens you end up with nothing. Seen it happen in 2008/9 and seemingly the greedy idiots like yourself haven't learnt a single thing.
I thought that about crypto until it fell by 99% (luna). please remember that a house is only worth what people can afford, regardless of demand. borrowing is going to get a lot tougher.
Property developers *do* however charge much too much for housing at the moment... It all has to be constrained by what people can afford. As you say, there is a housing shortfall, which a better Government would work to correct. There was a property price crash at the start of the 1990s, which dragged on for years and years, and people were trapped in negative equity. Probably the biggest reason why the Tories (eventually) lost to Labour in 1997.
The 1990's did see a correction. It lasted a few years. Main differences are interest rates for mortgages then were 12% to 15% not 3% to 5% and unemployment was way above 10% as opposed to 0% at the moment. From 2000 to 2020 the population of the UK increased by 8 million people... these are the underlying facts we need to think about. The market determines what developers (or indeed anyone) selling a property can charge. I agree the current situation is such a mess government should address the issues causing it. I believe that is unlikely therefore house prices will continue to increase. Good luck. Paul
@@PaulSmithTouchstoneEducation (I have watched lots of your UA-cam ads and rather like them! 🙂) I totally agree with you that property is a very good long-term investment. I've lived long enough to know that! (In the 1990s property prices really went down too low; and yet houses (other than like a Barratts home) were difficult to sell outside of London because of the shortage of employment and decent-paying jobs. And, of course, as you say, base interest rates were much higher. I live in Cornwall so am not crazy on the continual construction of "surf pods" and no new social housing. My mother left me her cottage when she died in 1999: otherwise I would never have been able to afford to buy anything.😏 This country has full employment then? I would dispute you on that: it's more like lots of partial employment: with loads of people on Universal Credit. 😏 But I might yet take one of your courses some day. 🙂
Great video mate. The population will keep going up bcz it's the best country in the world by a country mile for all sorts of people...we do have issues like racism etc but its nowhere near as bad as it is in the rest of the world so people who just want to live a normal peaceful life will choose the UK over the US, Austrailia and the rest of EU any day.
I have lived in countries so far: France, Poland, Canada, Czech Republic, Spain, the UK and I can tell you you are totally wrong. Any of those 5 places is easily as good as the UK, 4 out of 5 are better.
I’d rather have multi million pounds worth of GOOD debt that I then use to have multiple income streams from, then work my ar$e off for 15 years to pay off my 1 mortgage and be mortgage free saving myself a measly £600 a month.
Could you do some videos for housing and council tenants. Pros and cons when leaving a rented home to buy a home and rules of owning a home for rent/business. I met a girl who lives in a council flat and was given a house due to someone passing, I don't know what she ended up doing, but would she be able to rent out the house for business & carry on living in her flat that she pays rent for. 🤔 after all the house would be user as an real estate business & not as a second home etc.
1991 my home I had bought for £140k I sold for £120k and that was great for me as I was moving up to a bigger home... I bought it for £220k prior to the early 90's dip that same house would have been £270k. Almost always an opportunity Richard, most people need support to see it. Thanks for watching.
Very interesting video, but I just couldn’t finish it because of that extremely annoying background noise…. A scratched record playing the most irritating three notes over and over again. It absolutely drove me crazy. Otherwise I would have subscribed!
I do agree governments need to do far more. Meanwhile myself and the whole Touchstone family does what it can to help put roofs over people heads. Paul
Average new mortgage is about that. Roughly 70% of UK buy as opposed to rent property. Of the 70% homeowners 37% have no mortgage at all, it is paid off. of the 33% that still have a mortgage 80% are on longer term fixes. This leaves about 6% to 7% of the population on variable or new higher fixed rates. Property has gone up in value a lot (as it pretty much always does) over the last few years, people who bought their home pre-covid could sell and make a decent profit. The "at risk" group are those that bought in the last 2 years and did not take a long term fix. This is a tiny number. I know if you are impacted it is horrible but it is also rare. All that said the mortgage affordability tests are supposed to mean that people taking out mortgages are able to pay all the way to 7% plus interest rates. So the real at risk group is people that bought in the last 18 months, without fixing and their income has come down from what they stated on the application forms. Re-possession data is flat, ie does not support your claim. This of course could change but for now you are repeating media hysteria. Good luck.
Brilliant. Got into the Buy to Let some years by various routes. Got the same kind of response from a lot of people. All the comments you have mentioned, I got. I'm glad I kept going and ignored them. Without doubt, this has been my best investment . I probably would invest more in the rental sector, but just now, prices are going mad, plus , here in Scotland , a 4% Stamp Duty is applied, so sums not working out great. Still a great investment , so I'm happy. PS: I would also like somebody to clarify what a " crash " was :-)
I'm so sick of hearing about the property CRASH, I think I've heard about one going to happen over the last 20 years, even in 2008 there was only small dip. People obsession with a housing crash and hoping prices will half or something of the like are living in the clouds. There will always be demand for houses, a house costs the same as it did 70 years ago if you measure it by the weight of gold, this just highlights that the prices aren't increasing, tour money is losing its value.
Clearly you never experienced the 1990's property crash in which millions of home owners couldn't service the debt and went bankrupt due to high interest rates and negative equity. The only reason there was no correction in 2008 is because the Tory government bent over backwards to rig house prices. In the 90's you could buy a decent house for three times average salary yet the market still crashed. Today you need ten times average earning just to buy a shared property in London. It's completely unsustainable.
100% Agree Spokes... I always remind myself that bad news, crashes, disasters sell news papers. That is why they print it. March 2022 sadly was the worst month for US shares since 2008. Are the papers and media outlets full of that? This has been a bigger crash with more billions lost then ever in the history of time in the UK housing market...
I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.................
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.......
Housing prices going down is a good thing. There's thousands of people that can't even dream of buying a property, but all people like this care about is their profit margin. Millions of people stuck in the cycle of renting to people like this 🤮
Could not have said it better! People like this are adding more people to the pyramid scheme of property, so they can push up the prices further. on paper this guy might have millions the truth is he doesn't own any of it until its been paid off to the bank, don't forget people you don't own it until you have paid off the last payment, fall behind on your payments and see how the bank takes it away from you.
Why do you need to buy? What's wrong with renting.
@@deebrown7160 currently your at the mercy or these ruthless landlords that drive up the rent for no other reason than they are greedy cnuts. nothing wrong in renting, if there was a real framework to protect the tenant.
@@deebrown7160 because most landlords are amateurs who just want money & have no interest in fulfilling their obligations, as a landlord? Landlord isn't a profession....
@@deebrown7160 because you're just throwing money away when renting
My daughter has been trying to buy a house for ages but can’t get a look in. Estate agents have been so arrogant they know they get higher offers from people like yourself who buy property to rent out. She is an ambulance technician trying to buy a house closer to her place of work but estate agents just going through the motions of showing the house and not interested in her. She said it looked as if they had already received an offer. Then this lady turned up in a big fancy land rover and estate agent nearly broke his neck to chat to her.
One agent even laughed at my daughter because she offered slightly less than the price. Estate agent stopped laughing and said we only accept offers way above the asking price now. So I don’t know you but people like you are denying young people from getting onto the property market.
I understand the frustration Brian. We help people get on the housing ladder not the opposite. First time buyers have huge advantages over property investors. 1. First 3% or even 4% stamp duty surcharge. Plus lower rates of stamp duty anyway on first property. 2. Home buyers can get 95% mortgages, property investors cant. 3. As a property investor I am always looking to buy a house and add value. A new build that I can do nothing to rarely interests me. So whole swathes of the market are for First Time Buyers (FTB) and no investor worth their salt would want to compete. 4. FTB will almost always offer more than an investor as they are buying with their heart not their head. I will rarely have reason compete with a FTB. 5. Barclays offers a "Family springboard mortgage" which essentially means the FTB needs no depsit and can get a 100% mortgage. Investors can not access this funding. 6. Mortgage rates for FTB are lower than for investors through a limited company. I could go on. I am sure you get the picture. The right deals are massively stacked in favour of FTB. If you or your daughter want to email office@touchstoneeducation.co.uk copy/pasting this then the team can set up a call with me so I can help your daughter get on the housing ladder. I have 6 children. I am an investor but I am a Dad first. Good luck. Paul
@@PaulSmithTouchstoneEducation
Thankyou for that , I get a bit passionate about my daughter. She’s had a rough ride upto now and just want to see her happy. She’s saved very hard for a deposit and having no luck at all. Thankyou for your kind helpful reply
You are right Brian, these people are vile leeches on the young who now face a lifetime of owning nothing. They will crash the banking system like they did before with their greed and we will all pay in the end.
True estate agents take back handers
Estate agents are just like that - they are horrid to everyone! There has been a huge shortage of houses coming on the market lately.
It has always been tough to get on the property ladder. We could never think of getting a new house and tended to get houses that needed lots of work on them which we did ourselves.
BTL now cannot rent out houses with low insulation values so an old house with single glazing would be no good for BTL now.
I really do not think that BTL pays top dollar for houses. We have to buy cheap to make it pay so will not be pushing up the price. But it also has to be almost ready to let as we cannot afford to have it stand empty with a mortgage on it.
I would check different areas if you can as where you are may just be a hot spot perhaps with a uni, other areas may not be so sought after for renting.
thank you Paul..I will see you in Monaco sometime in October...Les Floralies...
How about having a home is your human right and the UK has failed young people …….
If thats where society wants to go then fine. "My right" to whatever costs money.... not sure being given a free house is a basic human right but if thats the way society goes then fine...
Hate it when people call the country "UK plc". It's not a public limited company. It's a nation.
Hate is a strong word. Do you really mean that? I hate starvation, murder and other things.
@@PaulSmithTouchstoneEducation Maybe not hate then. But when people who should know about financial affairs use it I find it annoying as they should really know what a PLC is.
Long term yes 100%,
But I remember 30% to 40% price drop where I lived in milton Keynes and my clever mates who bought property investments losing everything, not just 40% of their money , mortgaged property is fine when prices are going up but if it drops just after you buying it you will need to keep mortgage provider happy or lose your deposit and fees and house and still owe them money.
Add to that the danger of tenants not being able to make the rent etc and yes right now it seems very dodgy.
You only ever lose money if you sell which is what those that panicked in 2008/9 did. According to the ONS price drops in the worst recession ever recorded were 15%. As long as rent covers mortgage with a profit why would you sell? As soon as prices fell the government dropped interest rates and actually the landlords that didn't panic made more money than ever. Understand if you feel it seems risky, everything in life has a risk. "Fortune favours the brave". Good luck.
@@PaulSmithTouchstoneEducation my friends were repossessed and had no choice in the matter, no fault of their own apart from buying the house when prices were in a bubble, bank decided they wanted 30k because mortgage was now more than the house was worth, he didn't have it, bank then sold house for 60% of the price he paid and he lost all his money and bank still chased him for the shortfall.
Another one had bad tenants didn't pay and wrecked house, he could make the mortgage payments so again repossessed.
Yes they were unlucky but it happens a LOT .
I owned a btl for 10 years, 3 different tenants and 2 different agents,
1 agent stooe 6 months if rent, the other one was just a bit useless.
2 out of the 3 tenants fell behind on rent and left the house is a disgusting state causing thousands of pounds worth of damage during covid when I couldn't get anyone to do the work it was left empty for 7 months costing me a fortune.
Its no picnic.
I do believe we are in bubble territory and that's the big risk again.
@@FlyingFun. Very sad to hear Nigel. Your friends must have had commercial mortgages? Friend of mine has £23m of commercial property. Paying mortgages no problem at all. Bank decided they wanted £3m cash within a week, complete nonsense and they ended up repossessing. I help him sue the bank and he got more than £10m compensation. Knowledge and network is key to making sure the banks can not abuse you. I understand now why you say 40% drop as it was a repo sale: that does not reflect market rates. It does happen sometimes that tenants take the mickey. Being professional, trained and on top of the situation will stop this 9 times out of 10. Not trying to be clever just sharing some people that come to Touchstone have had similar experiences. Serviced Accommodation has no tenants (guests with zero tenancy rights), commercial property on FRI leases = zero landlord responsibility, rent 2 but ... I could go on: property has something for everyone. I do sympathise deeply. Why not give property a second go, learn your lessons and make money this time? Knowledge. network, support and accountability. If you believe we are in a bubble (I disagree as you know) then rent 2 rent, deal packaging and many other strategies mean you are never impacted by any bubbles even if they exist.
@@PaulSmithTouchstoneEducation thanks , I'll defo consider it , like you say if we had more knowledgeable people on our side it would help a great deal,
I defo dont want to br a hands on landlord and would need trustworthy agents managing it.
I’ve recently purchased our first property in May 22. I got 2.69% on a 5 year fixed. The property is in East Midlands, it was a new build in 2018 and sold for £295k. I paid £349k. I’m glad to have fixed at that rate but I’m worried about property prices crashing. I’ve always thought its best to have time on the market than trying to time the market. Do you think I made the right choice? Or should I have waited for prices to drop
Relax... you have done a great thing.. time in the market not trying to time the market.... 30 years from now this will be a cornerstone of your wealth.
If property is as safe an asset class as you suggest, then how come the rises since the financial crisis have had to be fuelled by very significant state intervention (endless demand-side measures), and how come this state intervention gets conspicuously and conveniently omitted from your analysis?
I shared my analysis openly AM.. do you mean the 2008/09 financial crisis? How about the period from 1845 (when the bank of England started reporting house price rises) until 2008/09. I believe we are heading for the largest world wide financial crisis yet, caused by crazy QE/print and spend. Inflation is 10% plus and this will further fuel house price rises... in my view of course.. lets just see what happens. Out of interest how did your property investments do the last 15 years or so? good luck.
@@PaulSmithTouchstoneEducation Many thanks for your response. Yes, I understand that your video doesn't just pertain to the situation post 2008/09. I'm merely pointing out that rises since the 2008/09 financial crisis have in no small part been driven by demand-side measures introduced by central government (or market parties in conjunction with central government), e.g. Help to Buy (various components over the 2013-2023 period or stretches thereof, including equity loans, mortgage guarantees, New Buy, Help to Buy ISA, Lifetime ISA), Funding for Lending, stamp duty holidays (2008-2009, 2010-2012, 2020-2021) and reforms, shared ownership and the First Homes initiative (2021 onwards). From the investor's point of view, the net result is the same: house price inflation. From an analytical point of view, however, any analysis of the prospects for the market can't be complete without acknowledgement of the contribution made by artificial stimulus and the potential effects of the government continuing or discontinuing demand-side measures.
I agree that we're heading for another financial crisis. In that regard, I'd suggest that factors such as QE are inextricable from the government's commitment to inflating house prices because we as a nation are obsessed with making the number on the price tag go up at all costs, even if that means the value of the number on the price tag must come down and even if that means creating another bubble fuelled by taxpayers' money and 'printed' money. It's a precarious situation, but it's one that has been in the pipeline for the last 15 years; the situation in Ukraine is just a catalyst.
The property market will decrease not necessarily crash and it will happen quite soon.
You might of course be right Paul. I have been hearing this since 2012 or so. Since then house prices have doubled. What specific reason makes you think house prices will decrease soon? For me all the fundamentals show further increases. I predicted in December 2021 8% average for 2022. I am still confident.
Got few property don’t know where to start and which program of yours I need 🤷♀️ to get
Well done you! Suggest you start with Wealth Through Property.. 2 days .. online... do it from anywhere and give you overview of all the main property investment strategies so you can compare and contrast ... booking link is here: shrtlnk.co/ORvk5
The key is demand but also interest rates. Low rates artificially increases house prices. The U.K. has most mortgages on short term rates, mostly 2-3 years fixed. That means interest rate rises have an almost immediate impact on home owners.
If inflation does rise much higher many who purchased on short term deals may struggle to keep repayments. Wage growth is poor in general. What I am saying is at some point there will be a breaking point. When that is I don’t know. I also wouldn’t expect a crash, housing doesn’t crash, it’s a slow process when correcting. But it is possible to have a 10% correction
Certainly agree 10% correction is possible David ... will prices go up 30% first then 10% down in which case the "crash" is plus 20% from current levels?
@@PaulSmithTouchstoneEducation 😂perfect reply
my current fixed rate (1.9%) mortgage is expiring in August. I am not sure what to do next, if staying with a variable rate until the inflation settle or choose a high fixed rate for 2 years. What are you thoughts?
Hi Paul, watching this 6 months after the video was made by you. Could you please do a video on strategies for people with BTLs as rates gone up to 7 percent from say 1 or 2 percent. What would be the best way forward for anyone with BTLs? Sell up as outgoing will be very high once the fixed term rates come to an end
we'll definitely have this on our content calendar :)
@@PaulSmithTouchstoneEducation many thanks
I remember Grant bovey ,Anthea turners then husband had 130 buy to let properties ,lost the lot when interest rates hit 15 percent.
I have had dinner in their house... long time ago now though... do you remember Gerald Ratner lost his fortune after a mis-judged speech? If we draw on this lesson we should stop talking? What is your point Nick?
If I'm really honest?! I don't think I could handle the pressure of all those mortgages and keeping up with the properties as I would have to completely immerse myself in proiperty and do nothing else so I wouldn't be able to do all the projects \i weant to do -eg build my own boat! but that's just me, am I wrong?
You need to do what is right for you.
Remember 17% interest ?
Never has the value of money been so little,
A reset is coming and being in debt could mean that you are in negative equity as were hundreds of thousands in the crash in 1980.
Giving the keys to the banks and still in debt.
Just to remind you that cycles have peaks and troughs.
Of course I remember 17% interest Huw. If that worries you join the 80% of mortgage holders on long term fixed rates. You can get a 25 year fixed rate if you want. I agree money is worth less and less (inflation) which is great if the money you use to buy the property is a mortgage (ie banks money becoming worthless) meanwhile your property value and rents are going up. Happy Days! If there is a reset why would hard assets (like property) not shoot up in value? Just like in the Wiemar republic...
The value of property is the monthly affordability, not its price.
When jobs and income are unable to sustain monthly payments then no matter what the cost is it makes property value drop.
No property is worth 3/4/5 + hundred thousand if you had to put down 50% and only borrow.3 of one person’s income.
It’s cheap money lent out to people on unrealistic multiplayer scales.
Greed and brainwashing does the rest.
A home is to have for a normal life, not being led into the debt trap and lose everything by people who have got luck and support .
All I want to say is it works for some people and destroys others,
I have been in construction for 45 years and my experience is wait until things are clear.
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Already liked and subscribed!
Bossshhhh
There is one thing that would reduce the value of property - mass death caused by war or plague or some other disaster. I guess we have to plan in hope this will not happen, but we do have some historical precedents to consider…🤔
That is what I call my "meteorite question"... what if a meteorite comes through the roof in the next 5 seconds and kills us all? well we will all be dead.... so nothing to worry about! Your point that many people may die... in the context of the world, possibly, somewhere. If that happens somewhere else, generally this causes more people to want to move to the UK. So house prices in the UK go even higher.....In the UK could this happen? .. only by something very extreme like nuclear war. If this happens then see meteorite question.
Many mortgages, high debts, as long as you have cash flow you can write off expenses, the better strategy.
Hi Paul, just subscribed, great informative video. Can you help me if you give advice? Dabs from Derby.
How can I help?
@@PaulSmithTouchstoneEducation Hi Paul, i will keep it brief. I was a joint mortgage holder on a 3 bed end terrace in Derby, my good friend passed away from cancer 4 years ago so i am now the sole mortgage holder. £94.000 outstanding on an interest only mortgage. I lost my case with the FSCS on a possible miss sell on time. I am 56 registered disabled finally. Can i get a mortgage or should i get a lifetinme mortgage? House has equity. Dabs from Derby. If you want my email let me know?
@@dabstheleo1967 almost impossible for me to give advice as I do not know what you are trying to do. Please make sure you are clear on your objectives, despite your challenges you are financially way better off than most. Use that wealth to achieve what you most want. Good luck.
@@PaulSmithTouchstoneEducation Hi Paul, i am trying to keep the house as the mortgage ended in 2020. Landmark Mortgages have been very understanding. I have a respite until 24/12/22 then they need to know how i will pay back the £94.000. Can i get a mortgage if my income is UC and PIP? Dabs from Derby
*You actually need to read the small print of your mortgage which obviously you haven't. Banks have a hidden right to rewrite your mortgage when the need arises. Do you honestly think that banks will give you a loan of £100 @ 2% whilst inflation is 9% , or 15% over a sustained period of time? No. However if interest rates become static , what about if unemployment goes up as inflation puts many companies out of business. And then ownerscannot service their debts. Well houses are going to have to be sold in order for the banks to recuperate their own capital. That's when houseprices will go down. And your own house price will collapse then even if you are paying your mortgage. When this continues , that's when it gets into negative equity. The basic rule is this: you cannot build wealth on debt.*
Hi Online, I think your model for banking operations is a little dated. Banks do not lend capital given them by depositors. We left the gold standard a long time ago. I have to disagree with your final statement: massive wealth is built on debt. Bluechip PLC's talk about WACC for instance:. Average cost of debt and shareholder funds. Apple and all the rest grow by receiving investor funds and debt that they then use to create a return. Good luck.
@@PaulSmithTouchstoneEducation *Hi. I'm not trying to publicly shame you. I think that you are generally very erudite and sincere in what you are doing. First of all , banks DO lend from deposits. Its called FRACTIONAL RESERVE BANKING. Admittedly this ( customer deposits ) is a part of what they do. If for instance all depositors collectively place a total of £100 in the bank , about 97% of that will be lent out to customers for borrowing. Then when borrowers spend that 97% and it is paid into banks by recipients , that about 97% of that 97% is lent out again to new borrowers. This cycle is repeated over and over and over again. In fact it would not be far fetched to find that £100 of customer deposits are supporting £1000 worth of debt. THIS REMAINS THE MAIN BUSINESS MODEL FOR 99.9% of the banks globally. This is actually how credit is created ... totally out of thin air. I'm struggling to understand how what I have said has suggested that this has anything to do with the gold standard. In fact it is because we are not based on the gold standard thatbanks are able to lend in the manner I have narrated above.*
*Admittedly since Lehman Brothers central banks around the world have lent banks trillions and trillions to reflate their balance sheets. This keeps the banks afloat but the liabilities of the banks have been transferred from banks to sovereign governments. Most central banks are totally bankrupt. If you don't believe me Google Professor Laurence Kotlikoff , a professor of economics at Columbia University who for years has been warning that the USA's real debt is around $250,000,000,000,000 ( Two hundred and fifty trillion dollars ) ... I stand to be publicly shamed by all your viewers if I am proved wrong.*
*As I have said you cannot build a sustainable business on debt. Yes companies do use WACC and other metrics. But if you consider the fact that the bond markets are said to have a derivatives exposure to the tune of somewhere in the order of half a quadrillion dollars. Yes QUADRILLION!!! That's a 5 with 14 zeros !!! This is not speculation. This is fact.*
*The reason why stock markets have been rising incessantly over the last 20 or 30 years is because governments are simply printing money and that money , especially during the time of Lehman Brothers, was given to banks who in turn use it to "invest" in the stock markets. Price appreciation of S&P , Dow Jones , Nasdaq , FTSE is directly correlated to how much money the government prints. In case you don't believe me do your research into a group called The President's Plunge Protection Team. The President can and does authorize them to buy up shares on the stock market any time theres a dip. So the buoyancy that you cite for Apple etc are all based on debt ( money printed from thin air ). This false sense of security flows throughout the economy , including the housing market. When the tide turns , there will be absolute mayhem. Warren Buffet once said : "Its only when the tide goes out that you can see who has been swimming naked"*
*So in response to your comments that my business models are "dated" , respectfully Sir , I think that you are giving "advice" without having the full picture. In the coming collapse ANYTHING based on debt will have a counterparty risk. That is not the best way to hedge against risk , with more (countrtparty)risk.*
www.google.com/amp/s/www.cnbc.com/amp/2018/09/08/boston-university-economics-professor-laurence-kotlikoff-wants-to-change-your-retirement.html
You didn’t experience a property price crash because prices in Scotland weren’t as ludicrous as the south east of England.
In the outer suburbs of south London 1930s 3 bed semis are over 600k , the average wage in that area 30k , these prices can’t continue. Once the government/bank of England stops printing money to prop up the economy, land lords won’t have access to cheap money to further inflate property prices.
Pretty big if there... government stops printing money... I understand your point
@@PaulSmithTouchstoneEducation They are and have been addicted to printing money for over 2 decades . Pumping that money into the economy causes inflation.
Inflation is normally quelled by raising interest rates to dampen demand , but they just moved the goalposts to pretend the economy was ok.
This caused asset prices to soar ie houses, because money was cheap and easy to borrow .
This is coming to an end . I just feel sorry for the people that have borrowed large amounts just to get on the property ladder.
@@haydnlawrence8167 with inflation 9% (on the street 19%) the rates will have to go as high as 10% and quickly. it is easy to see what will happen ...
I'd like to start with property and become financially free. How do I go about it?
Hi Greg! What we would highly suggest is you take a look at our Wealth Through Property 2-day training? This really is the A-Z manual on what we do and what can be achieved with property! Click the link to book your space (the events do tend to sell out well in advance and are all online) shrtlnk.co/YGPwb
Let us know if there’s anything else I can help you with? 😊
Do you think it is wise for me to release some equity and use that to "buy a buy to let" property?
I hope the answer is yes, because I'm wanting to go outside of my comfort zone and go for it.
definatelly im doing the same remortgaging all my 7 properties to go to the next level i m a millionaire through property hopefully i can know buy land and build no looking back after that
If you are correctly educated and know what to look out for then absolutely! we are happy to help on the education side!
Two ways to look at it, you can be out of your comfort zone in more ways than one
That’s what we did in 2016 to get our first buy to let
ua-cam.com/video/eBVYqqE0Wp0/v-deo.html
Thanks for sharing this, really helping
I have a friend called Omar and he always wants a property crash and takes the Micky out of me for having buy to let’s saying we going to have a massive property crash, it will end in tears, we going to have sky high interest rates, we going to have high inflation, your houses are liabilities not assets blah blah, I felt very satisfied showing him this video
Thank you for watching Khanage! Glad it made you happy. More importantly glad your BTL are making you money and you are putting roofs over peoples heads. Well done you.
No you don't
Its a MUST to pay off your personal mortgage in the home you live in. As for my property portfolio, I owe millions, interest only.
Eventually, yes, but rushing to pay off your residential isn’t a priority for the majority
I agree with you 💯 👍
@@alexwitham Eventually ofcourse, else if i ploughed all my earnings to pay off my mortgage, i’d had no money to invest in Bitcoin when it was £200 😁😁
Most people think like you K Crypto. I never intend to pay off my home mortgage: the money is too cheap and I can use it to make a lot more money. Good luck. Paul
excactly the way to go
We're in a de-pop situation so it won't be 70 mil for long, you arnt taking into account thex4th industrial revolution AND PROPERTY, please advise with that in mind.
Population is going up Alison not down. World events (eg Ukraine, rising sea levels) could very easily accelerate the rate of UK population growth. The 4th Industrial revolution (AI, Quantum Computing, Genetic engineering, The internet of things etc) will of course impact jobs: I believe 30% to 40% of all the jobs humans do now will not exist by the year 2030. What will not change is whatever we are doing we still need homes to live in. Work will be ever more decentralised and home working 100% the norm. Space is our homes ever more precious and valuable. The 4th IR will put even more pressure on property prices. Roughly 1 billion people will be displaced medium term by rising sea levels and another 3 billion are lining up globally to improve their lifestyles. Thanks for your great point. Paul
Your brother!!!
I have a couple of pennies in the bank with no mortgages ! 😂😂😂
Thanks for watching and good luck to you!
inspirational
Thank you for watching!
If noone is working who will pay rent? Will there be a real-estate bail outs??
im in my 50s and looking to take early retirement. Property is typically seen as a long term investment. Too late?
Not at all Nick :) We are here to guide you so you can start right :)
I remember telling someone I USED to work with my plans for buying multiple houses and he said to me “You can’t buy multiple houses you can only have 1 mortgage” and I knew right then to kill the conversation as there was no convincing this gentleman otherwise.
A lot of people speak very well but they are really full of shit. The amazing thing is when you don't speak English the way an Englishman does, they think you are stupid until they realize 10 or 15 years later that you own the business in which they work or own the house they are renting. Life can really be interesting. 🤔
Ha ha ha ha ha ha 😂 😄 😆 small mind thinking from small people. Don't tell anybody your plans. Stay hush and do it for yourself. Fun fact you can also get first time buyer deals in other countries also.
Used to think like the solicitor...Now I think like the banks and gamble as much as can on the long term property market. The wealthy get wealthier by borrowing against their assets.
Do not work for your money rather make your money work for you... agreed!
You have given 100 % correct adviced for property price crash
In the North of England- I bought a new build 2007 which dropped 35% within 2 years.... 10 years later it got back to original value. I wasn't the only one!
Hi Christopher.... thank you for sharing, averages by nature just that: averages. There will be somebody on the other side of your average that has made even more money than you. You are saying by 2017 it got back to original value.... that was 5 years ago. How much has it gone up since then? If you did not sell you did not take a loss. If you rented it out you have made rental profit for 15 years now. How much deposit did you put in and 15 years later what is your total (rent plus capital appreciation) so far on that deposit? Thanks for your comment.
I think a crash is needed. Despite the demand uk prices are vastly over priced
I know many people "hope" or "want" that... really not sure it is happening any time soon.. I am still buying...
@@PaulSmithTouchstoneEducation Hi Paul. Do you think rents will increase in order to offset diminishing yields?
Or will it take that elusive correction to make that happen?
@@lordsummerisle852 Great question. Rents are rising and will continue to rise. What else can happen? Massive supply shortage and huge demand. Our yields are going up on a month to month basis from rent and most of our mortgages are fixed so rate rises are not relevant for years. When you add the huge capital growth our total returns are the highest they have ever been.
@@PaulSmithTouchstoneEducation me to if your innit for the long haul you cant go wrong i bought my first property 15 months before the crash in in the 80s i rented all rooms and slept on the couch till this day i still own it and have remortged to buy other property you just need staying power and b.......s
How do i invest in investment property
Hi Leon, thank you for watching :) Would you be interested to know more how to get started?
What would be great
@@leonreece1169 amazing! We would highly suggest for you is to take a look at our Wealth Through Property 2-day event training. It is the A-Z manual on what we do and what can be achieved with property. You may click here to book your seat>> shrtlnk.co/0ObdV. Let us know if there’s anything we can help you with :)
What happens when your fixed rate 2 year expires and rates go up to 15%?
You wake up and discover you were dreaming... seriously interest rates can not go to 15%. The government could not service the national debt and the UK would be bankrupt... even the most bonkers of politicians would not bankrupt the UK... I have lived through rates higher than that so I do know what to do. I can not see it happening this time for many reasons. Good luck.
Price crashes and recessions aren't caused by lack of demand. There's always been a demand and shortage of housing. The 'thing' which causes a drop in house prices, is the availability of finance, and the affordability of finance. And this is how all recessions are used to mainpulate the money supply, and subsequently rob the people of their wealth, of their assets, and now as we'll see, their savings. If you choose to buy now, best of luck, it's your journey, and I'm sure some people will do okay. But a word of caution, if you haven't seen it already, go and watch the film, 'the big short', and then see if you can see any similarities in the world today. Maybe make your plans based on that, rather than marketing, and cash back mortgage offers.
Hi Wayne, I agree "The Big Short" is a great film and a must watch for property investors. 2008/2009 was very different to previous recessions. Bankers seem to love inventing new ways to break the system! This time it is a massive QE bubble. Let's see what happens. I am backing physical (ie non-cash / equities) assets. Specifically UK property and gold. Plus I am backing bitcoin. How do you think people who have created wealth should protect it? I agree with you inflation will rob you of your wealth if you leave it in cash.....
Well said, personally I think it's terrible advice to buy now at inflated prices and interest rate rises iminent. Very few economists are predicting that house prices will continue to increase at the current rate, at best, prices will flatline. Look at the US rates and how much they have gone up in the last few months. I expect guys like this who may have lots of cash may take advantage of the crash.
Yeah, but! but! ... what about affordability with salary remaining stagnant vs increasing inflation ???
Many people salaries are shooting up. Inflation is the property investors friend. Good luck.
Karl Marx once said ‘landlords reep where they never sewed’. ❤ I’d love to have a passive income but I believe that income should be earnt. As a renter, I have experienced the lack of care that property owners have for the people living in their domains. It’s really a selfish market. I’d rather work flat out in a cafe on minimum wage than receive a lazy income by indirectly enslaving people worse off than me. God bless and I hope you see the light ❤
Wow, that made my listen to the very end 👍
honestly I’m so fed up with renting… but I don’t have much for deposit and too old to having a mortgage… even me & hubby have a good salary no loans no credit card… but I don’t think so we could have one these time… we living in south west… 🇬🇧
Property is the best investment 👌 you can ever make. I've had over £335,000 in rents over the last 25 years. Plus the value 👌 these days.🤭🤭very interesting video 📹 of yours 👍👍👍
We couldn’t agree more with you, Simon 🙌🏻
What about the 18 year cycle? Surely this mad growth in last 2 years has to correct.
Hi Adrenalin, this is UK property. I have been investing for 40 years now... I should have seen minimum two 18 year cycles by now?
If interest rates in the UK increase from the current 0.75% level to their long term average 3.5% then mortgage rates will increase by 450% undermining this extremely interest rate sensitive market - I wud rather invest in a trailer park than residential British Property🤓
Hi David, the MPC can not do this that quickly as it would directly and massively impact the cost of servicing the national debt. It would lead to the UK defaulting which will not be allowed to happen. Maybe by 2030 rates could hit 3.5%. Of course it depends on your reference frame, for long term UK mortgage rate average I would say it is closer to 6% not 3.5%. BTL lenders typically use an assumed 6% mortgage interest rate and 145% debt service cover (ie rent being much higher than mortgage payments) so even at 3.5% not an issue assuming you are holding the property long term. Of course each to their own. Good luck.
@@PaulSmithTouchstoneEducation Thanks for your wisdom - let’s face it what really caused the property boom was interest rates falling from 15% to 0.5% making interest only mortgages 30x cheaper - those days are over 🤓
@@davidrouth9901 partly David but also lack of supply, massive demand, relative volatility of other asset classes... and all the other elements I tried to cover in the video... yes interest rates dropping certainly helped.
I hate property with a passion - what made Britain a monumental super power was industry and science and not people sitting on their fat arses and assessing property gains🤓
Property prices have gone up over the past 2yrs yes....but property prices have infact gone up over the past 10, 20, 150 yrs. 1000s of yrs and will continue to. Having said all of that a correction in the short term will happen and then the upward trajectory will return again. Just take a look at the charts for the past few decades.
Why on earth do you *want* a property crash? If a crash arrives, then it's likely that interest rates will rise. So that supposedly cheaper house will cost you more in higher interest rates.... Don't expect some sort of windfall. Prices are expected to ease by around 5%, but that's about all.....
According to latest estimates property prices will go up by 9% in the UK in 2022. I do not want a crash, did you watch the video Brian?
fundamentally speaking, prices are not in line with wages, and continue to depart from reality with every passing decade. People like yourself Paul have benefitted from generational position, not 'good investments' per se, i.e. you got in at the ground floor of right-to-buy and the 'great financialisation' and have never looked back since. Landlords like yourself prey on the suffering of others, and one day you might find your conscience speaking to you with a tone you've never recognised. In the mean time, the politics will change with the next generation and these contingencies that you label 'fundamentals' will change with it (green belts, landlordism, population growth, public housing, material price, housing density etc).
how anyone can tell us we’re better off than 40 years ago or we live in a society where we have choice or more choice than in previous times is either talking about the amount of channels available on screen or take away food options compared to 2003 or relying on the ignorance of those whom weren’t around long enough to know different. how on earth can a so called wealthy nation
call itself a free country when something as fundamental as housing is an option to only those over 35 or more unless they’re extremely well paid or from those with the means & when that choice means aspiring to be tiny tycoons or go without . those without - however hard they work whom simply expect a roof over their heads for rent at a fair proportion in respect of the average expected or paid income as their parents & grandparents could enjoy but instead are the unwanted or unimportant bi product of one political ideology / business model hatched 45 years ago . that’s how I see it !
Very logical!
Absolutely spot on with your analogy
Thank you for watching Jay 🙂
Well said :) logic will win
Thank you for watching! 🙌🏻
hello Paul I'm interested in getting on a property ladder , is they anyway you can help me. Thank you
Absolutely! You may send us a message at office@touchstoneeducation.co.uk to get started :)
Thank you I will
Rising fuel prices , food prices , energy prices , insurance prices , property prices … in general everything has gone up. Wages have stayed the same . How do you expect people to afford the average home to either buy for themselves or rent out?
There is a shortage of houses in most areas . A shortage to buy or rent .
Great for you with a property portfolio, but not realistic for the vast majority of people who work forty hours a week , with no money left over for investment , solicitors fees , deposits etc etc .
Your living in a dream world . All you’re doing is talking about you , how great you are going and how you manipulate things to suit you . Most people are struggling to put food on the table and get by. Give it a rest mate.
If it were that easy everyone would have done it . Your in a privileged position and using it on UA-cam to help yourself .
Hi Will. If I am in a privileged position or I am "lucky" I have one thing to blame: hard work. Of course it is not easy that is the point. Anyone can do it, I started with nothing. I am talking about how those with work ethic, determination and a dream can achieve massive results. I want to help everyone that accepts personal responsibility and are willing to learn. Good luck on your journey.
@@PaulSmithTouchstoneEducation I too am
In a good position through hard work . But half of everyone’s life choices are luck . Lots of people work hard and don’t get the breaks . Lots of people don’t get the opportunity to work hard due to factors beyond their control .
You are on a good place , but not everyone can get there . Circumstance have changed . I have no doubt you had a couple of breaks, good networks and the initial cash to start , however it’s not achievable for all. It’s very simplistic to suggest it is .
Not everyone can achieve what I have , and I wouldn’t begin to tell everyone they can all do it . There are a lot of variables and uncontrollables, If their wasn’t then what a lovely world it would be.
If ifs were what’s, and pots were pans , there’d be no work for beggars hands .
I wish you well in all you do .
I’m sure if you met neil Armstrong and he told you all he had to do was a bit of study and sit in a rocket ,you’d have to be an idiot to think it was that simple .
Funny how your altruism also raises your profile and benefits you somehow . I see a narcissist with an ego, not an altruist that wants to help his fellow man .
Not all success is about money .
Funny old world eh? .
Interest rates hav gone up just bought a house. Not sure what u mean. Third time it’s gone up.
then take out a fixed mortgage interest rates then dont affect you very simple solution sir
Did you write any books?
Yes, I did :)
@@PaulSmithTouchstoneEducation What is the title?
@@Morten_Nielsen1979 first one was The Serviced Accommodation Success Manual. Then The Property Investment Survival Manual then most recently Wealth Through Property. Hope this helps?
absolutely amazing! Watched from start to finish and wasnt boring attall. Il be looking into touchstone courses soon :)
Welcome to the team Matthew!
Most valuable 12 min i have had in youtube in recent time.
Thank you for watching 🙌🏻
Re: crashes and corrections in the stock market and property market. A 10% 'correction' in the property market is much worse than a 20% 'crash' in the stock market, because in the property market I have invested someone else's money, not my own. Take £1M invested in property, and I sell the asset after the crash. I now owe the bank £100k, whereas in the stock market I have only lost 2 or 3 years interest.
Mortgages are leveraged investments, and leverage is risky business.
And finally, you insinuate that financial experts not invested in property are in no place to question the future of the property market if they don't own property themselves. In fact, it's exactly the opposite. Would you trust someone prophesising a bear market in a commodity if you discovered that they maintained a significant investment in that commodity? Of course not, that would make them a fool or a liar.
Great video Paul been following you for years onto my first property this year 👊😎
Congratulations! Be sure to connect with the community on facebook and keep us updated!
How can I get help from you to build portfolio using my SSAS
You may send us a message at office@touchstoneeducation.co.uk to get started :)
The real estate market in Danmark crashed by 60% 2007-2008.
Can you explain why that happened? Is Denmark a good place to invest in property?
Before DVD was CD ...and then VHS etc....
Good explanation, educated man.
Thank you :)
Give it a couple of years. You'll soon see your brother was right.
No problem Jenie, I have given it 40 so far... good luck whatever your path.
@@PaulSmithTouchstoneEducation I wish you the best also.
It isnt going to drop.
The issue we face here in Cornwall is that prices are up by more like 40- 45% in just 2 years. For example we had a 20% deposit for a nice house now I can't save fast enough to keep a 20% deposit for even a medium sized flat. It's the rate of rise here that's doing us in.
The fact that professional property investors are still offering those increasing prices tells me that we are not near the price peak yet.
Mixed emotions on this one for me Dan: I agree with you we are nowhere near the top and there is far more money in the world than there was pre-pandemic (QE printing) until that flows through prices will rocket. Clearly I sympathise with anybody that this stops from getting on the housing ladder. Why not go for a 95% mortgage? Or at least a 90% mortgage? Do whatever you have to to get into property is my advice.
So the millionaires, billionaires are the only one able to buy houses which most are empty especially those who have 2 or more houses
@@JJ-tb9cq I replied to Brian below who had similar concerns. This is a copy/paste of what I said to Brian: "I understand the frustration Brian. We help people get on the housing ladder not the opposite. First time buyers have huge advantages over property investors. 1. First 3% or even 4% stamp duty surcharge. Plus lower rates of stamp duty anyway on first property. 2. Home buyers can get 95% mortgages, property investors cant. 3. As a property investor I am always looking to buy a house and add value. A new build that I can do nothing to rarely interests me. So whole swathes of the market are for First Time Buyers (FTB) and no investor worth their salt would want to compete. 4. FTB will almost always offer more than an investor as they are buying with their heart not their head. I will rarely have reason compete with a FTB. 5. Barclays offers a "Family springboard mortgage" which essentially means the FTB needs no dep0sit and can get a 100% mortgage. Investors can not access this funding. 6. Mortgage rates for FTB are lower than for investors through a limited company. I could go on. I am sure you get the picture. The right deals are massively stacked in favour of FTB. If you or your daughter want to email office@touchstoneeducation.co.uk copy/pasting this then the team can set up a call with me so I can help your daughter get on the housing ladder. I have 6 children. I am an investor but I am a Dad first. Good luck. Paul"
@@PaulSmithTouchstoneEducation I have the opposite problem. I saved a nice deposit since living at home for 10 years spending little. Since my gf can not work the household income is not enough to compete with couples buying together. 4.5x is what they will lend me so almost £100,000. The cheapest terraced houses start around £160,000. New builds are £200,000 plus. As a solo buyer you need to earn £35,000 to have a chance to compete. How many people under 30 achieve this? Id guess 25% at most but more likely 10%.
Amazing information you are doing great job 👏 👍
Thank you :)
Cracking video Paul. I love your honesty & the way you explain things to help dummies like me to understand 😀👍
Thank you for the warm words. There’s always something to learn and we are happy to help ☺️
Or social housing could be built so that people could actually afford to live in them
Good point, Neil 🙂
In 1970 over 50% of new houses were state built (Council houses) the last 20 years in been almost zero!
Come back to this video in a year.
I hope ther is a big crash in the housing market the prices are disgraceful. My mortgage is payed off so don't have to worry any more about intrest rises. I have 4 kids who will probably never get on the housing market. Cut down imagration then that should cut down demand Al though nothing against immigration just the numbers. How will we ever catch up while so many people are moving here
Your comment saddens me... on many levels
Thank you. I have £300k i want to buy a house but my seller in talking the piss. Made me wait 6 months and now want £15k more. 😔
Whats the address bro or number for the landlord thanks god bless
Thanks for this
Thank you for watching, Michael :)
Totally agree. There will not be a price 'crash'. Maybe it will plateau or increases will be low but there will not be a crash. The shortage of decent housing, and housing in areas where there are jobs will always ensure there is demand. Add to this the increasing population - though I feel this will decrease as the increase is mainly through immigration , not babies being born. I think you can make a mess of buying a property as an investment, but it's not easy to do !
But the salaries for most jobs remain stagnant, or arent keeping up with inflation
Treat a house like an asset, it can crash like any other asset.
Each to their own Adam. Housing has never crashed like a number of other assets have. Pretty difficult to steal a house for example...
They can not put up interest rates,everything else has gone up in price so much
Question - get on the property ladder as soon as possible for a 1 bedroom apartment (approx £180k) in a high appreciation area, or, wait 1-2 years to raise a much bigger deposit (+£15-30k) and a substantially higher salary (+£30k). UK buyer here.
Depends on your current situation outside of finances and what you are happy living in. It costs lots in stamp duty and other fees to move later so what would you need in 5 years time?
This was so helpful, I live in the South east and i'm currently in negotiations over a buy to let property here and my family have discredited what i'm doing by saying taking mortgages and investing in property (before the crash XD) is the stupidest thing I can do and i'm throwing my money away.
My genuine belief is that (in the UK) property prices will never go down (on average), year on year. Its a much safer and economical investment than stocks or savings accounts. I'm new to this channel but its very helpful, I have liked and subscribed.
Thank you :) We have more on our channel that you can check :)
It will not crash. Don't worry. After Priti Patel welcome Hong Kong citizens. Chinese are buying. They are paying more thn asking price.
Nothing is ever safe. Building a portfolio of buy to lets is fake money, you don't own the property the bank does and when the crash happens you end up with nothing. Seen it happen in 2008/9 and seemingly the greedy idiots like yourself haven't learnt a single thing.
I thought that about crypto until it fell by 99% (luna). please remember that a house is only worth what people can afford, regardless of demand. borrowing is going to get a lot tougher.
ua-cam.com/video/eBVYqqE0Wp0/v-deo.html
Property developers *do* however charge much too much for housing at the moment... It all has to be constrained by what people can afford. As you say, there is a housing shortfall, which a better Government would work to correct.
There was a property price crash at the start of the 1990s, which dragged on for years and years, and people were trapped in negative equity. Probably the biggest reason why the Tories (eventually) lost to Labour in 1997.
The 1990's did see a correction. It lasted a few years. Main differences are interest rates for mortgages then were 12% to 15% not 3% to 5% and unemployment was way above 10% as opposed to 0% at the moment. From 2000 to 2020 the population of the UK increased by 8 million people... these are the underlying facts we need to think about. The market determines what developers (or indeed anyone) selling a property can charge. I agree the current situation is such a mess government should address the issues causing it. I believe that is unlikely therefore house prices will continue to increase. Good luck. Paul
@@PaulSmithTouchstoneEducation (I have watched lots of your UA-cam ads and rather like them! 🙂) I totally agree with you that property is a very good long-term investment. I've lived long enough to know that! (In the 1990s property prices really went down too low; and yet houses (other than like a Barratts home) were difficult to sell outside of London because of the shortage of employment and decent-paying jobs. And, of course, as you say, base interest rates were much higher. I live in Cornwall so am not crazy on the continual construction of "surf pods" and no new social housing. My mother left me her cottage when she died in 1999: otherwise I would never have been able to afford to buy anything.😏
This country has full employment then? I would dispute you on that: it's more like lots of partial employment: with loads of people on Universal Credit. 😏
But I might yet take one of your courses some day. 🙂
Great video mate. The population will keep going up bcz it's the best country in the world by a country mile for all sorts of people...we do have issues like racism etc but its nowhere near as bad as it is in the rest of the world so people who just want to live a normal peaceful life will choose the UK over the US, Austrailia and the rest of EU any day.
Thank you and fully agree!
I have lived in countries so far: France, Poland, Canada, Czech Republic, Spain, the UK and I can tell you you are totally wrong. Any of those 5 places is easily as good as the UK, 4 out of 5 are better.
I’d rather have multi million pounds worth of GOOD debt that I then use to have multiple income streams from, then work my ar$e off for 15 years to pay off my 1 mortgage and be mortgage free saving myself a measly £600 a month.
New subscriber here 😊 am glad I found this channel it is very informative and positive thank you so much
Welcome Matt. Enjoy
Could you do some videos for housing and council tenants. Pros and cons when leaving a rented home to buy a home and rules of owning a home for rent/business. I met a girl who lives in a council flat and was given a house due to someone passing, I don't know what she ended up doing, but would she be able to rent out the house for business & carry on living in her flat that she pays rent for. 🤔 after all the house would be user as an real estate business & not as a second home etc.
Hi there.. let's get it on the list and see if we get demand! Thanks for the idea.
@@PaulSmithTouchstoneEducation how big is the list. Hopefully this makes it to the top soon. Thanks
Maybe your right ,but 1991 people handing over their house keys to the mortgage companies
1991 my home I had bought for £140k I sold for £120k and that was great for me as I was moving up to a bigger home... I bought it for £220k prior to the early 90's dip that same house would have been £270k. Almost always an opportunity Richard, most people need support to see it. Thanks for watching.
Quality 👍
Thank you :)
I paid more money because my boys were at home using gas, water, electricity and eating as the teenagers boys they are🥺
Supply and demand no supply plenty of demand
Correct.
Wisdom.
Very interesting video, but I just couldn’t finish it because of that extremely annoying background noise…. A scratched record playing the most irritating three notes over and over again. It absolutely drove me crazy. Otherwise I would have subscribed!
Good luck anyway! Paul
Bang on Paul mate!
Cheers Mark!
The amount of money council makes out of council tax to they can build house 🏡 for poor people charity begins at home
I do agree governments need to do far more. Meanwhile myself and the whole Touchstone family does what it can to help put roofs over people heads. Paul
Average mortgage cost now 5.69% one year since this video was made. People at risk of losing their homes all over the Country
Average new mortgage is about that. Roughly 70% of UK buy as opposed to rent property. Of the 70% homeowners 37% have no mortgage at all, it is paid off. of the 33% that still have a mortgage 80% are on longer term fixes. This leaves about 6% to 7% of the population on variable or new higher fixed rates. Property has gone up in value a lot (as it pretty much always does) over the last few years, people who bought their home pre-covid could sell and make a decent profit. The "at risk" group are those that bought in the last 2 years and did not take a long term fix. This is a tiny number. I know if you are impacted it is horrible but it is also rare. All that said the mortgage affordability tests are supposed to mean that people taking out mortgages are able to pay all the way to 7% plus interest rates. So the real at risk group is people that bought in the last 18 months, without fixing and their income has come down from what they stated on the application forms. Re-possession data is flat, ie does not support your claim. This of course could change but for now you are repeating media hysteria. Good luck.
Nothing is set in stone , the property market is grossly overpriced and out of reach to most people , therefore a major crash is on the horizon .
Fabulous as always Paul...thank you...I will be joining very soon
Cheers Steve
Brilliant advice,, simple and to the point,
Thank you, Diane 😊
Brilliant. Got into the Buy to Let some years by various routes. Got the same kind of response from a lot of people. All the comments you have mentioned, I got. I'm glad I kept going and ignored them. Without doubt, this has been my best investment . I probably would invest more in the rental sector, but just now, prices are going mad, plus , here in Scotland , a 4% Stamp Duty is applied, so sums not working out great. Still a great investment , so I'm happy. PS: I would also like somebody to clarify what a " crash " was :-)
I think the price might drop next year
What we are witnessing is the collapse of the western social system, assets will survive debt will be devalued.
Inflation is what kills democracy ... and it is the empire killer too.
I'm so sick of hearing about the property CRASH, I think I've heard about one going to happen over the last 20 years, even in 2008 there was only small dip. People obsession with a housing crash and hoping prices will half or something of the like are living in the clouds. There will always be demand for houses, a house costs the same as it did 70 years ago if you measure it by the weight of gold, this just highlights that the prices aren't increasing, tour money is losing its value.
Clearly you never experienced the 1990's property crash in which millions of home owners couldn't service the debt and went bankrupt due to high interest rates and negative equity. The only reason there was no correction in 2008 is because the Tory government bent over backwards to rig house prices. In the 90's you could buy a decent house for three times average salary yet the market still crashed. Today you need ten times average earning just to buy a shared property in London. It's completely unsustainable.
100% Agree Spokes... I always remind myself that bad news, crashes, disasters sell news papers. That is why they print it. March 2022 sadly was the worst month for US shares since 2008. Are the papers and media outlets full of that? This has been a bigger crash with more billions lost then ever in the history of time in the UK housing market...
@@enochpowell27 have a username and picture that will have significant associations for some people. What is the intent?