The Property Podcast TPP596: The silent property crash: one year later
Aug 15, 2024
Explore the intriguing concept of the silent property crash and its far-reaching effects on investors. Get an insightful update on house price trends, including a drop in real-term values after the COVID bubble. Understand how inflation can surprisingly benefit property investors and reveal undervalued opportunities. The hosts weave in tales of a potential market stabilization while also sharing their excitement for paddle, a fun new sport that combines badminton and tennis, adding a lively touch to the conversation!
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Silent Property Crash
- UK house prices are now cheaper than they were 20 years ago when adjusted for inflation.
- This "silent crash" has resulted in a 13% real-terms decrease in value over two decades.
Leverage and Inflation
- Leverage can transform a non-spectacular property market into significant returns, even with inflation.
- A property bought 21 years ago would yield an 8.5% annual return, excluding rent, if sold today.
Investing Advice
- Property investors should take advantage of the current market conditions and leverage.
- Focus on areas outside London and the Southeast for better value opportunities.