TPP380: Inflation v Deflation - Part 2

It’s the second episode in our two-part series on the important topic of inflation and deflation.

Last week in the first episode Rob & Rob looked at how inflation and deflation impacts you as an investor. So this week they’re going to look at those impacts and see what it means for the future. 

It’s another episode where Rob & Rob are being bold, so hold onto your hats for this one. And it turns out, at the time of recording these episodes, The Robs were also predicting the future. 

They talk about quantitative easing and said they wouldn’t be surprised if the Bank of England would pump more money into the economy. And low and behold, a recent news story appears ‘Coronavirus: Bank pumps £100bn into UK economy to aid recovery’. 

Even before this announcement, the amount of money that has already been pumped into the economy this year alone is more than the financial crash back in 2008!

Which means the information from this episode has just become even more important than ever!

Last week The Robs demonstrated why inflation is good for investors and how deflation could be damaging. So there’s one question we now need to ask:

Are we currently heading towards a period of inflation or deflation?

Tune into this jam packed episode to find out.

 

This week we’ve got a couple of news stories for you, the first coming from The Times and the headline reads ‘tougher times for buy-to-let landlords’. The article is stating that Barclays have said they’re going to stop giving mortgages to landlords who buy through limited companies, which seems crazy since all other big lenders seem to be getting back on track with mortgages. 

But that wasn’t the most shocking news to Rob B - he didn’t even realise that Barclays did buy-to-let mortgages, but that’s probably down to the fact that they only offer 65% LTV on an interest only basis. So this probably won’t have too big of an impact on investors. 

The second news story is ‘court of appeal sides with landlords in landmark case ruling’ and it’s in line with Section 21, when you want to end a tenancy without your tenants having done anything wrong. 

In previous times, to evict a tenant you had to provide them with a gas safety certificate before they moved in. If you didn’t you could never use Section 21. Now, things have changed - find out why by listening to today’s episode. 

 

For Hub Extra this week we’ve got a few resources that Rob & Rob used to help them put together these episodes, and they’re likely to help you in your understanding of everything that’s been covered over the past two weeks. 

So, we have: 

• A lengthy article that isn’t as daunting as it looks
• A podcast on inflation and deflation
• Another podcast
• A YouTube video from the Bank of England on quantitative easing

Hopefully these will help you in your continued learning.

 

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