The biggest house price fall in 2 years has just happened.
I, Rob Moore, Co-Founder of Progressive Property is asking, is this the start of the biggest crash in history?
Some people might say that’s doom mongering, but I do believe this is going to be the biggest crash in the last 100 years.
In November 2020, house prices dropped by 1.4% and the prediction from the government’s official forecaster is that there will be a 9% drop over the next two years, but I think they are way off on that number.
Lockdowns, COVID, soaring cost of living, skyrocketing inflation, huge interest rates, massive taxation all all indicate that there’s going to be a HUGE price correction.
In October 2022, the average house price in the UK was £268,282. This means for a lot of first time buyers it was impossible to get on the property ladder. Now, with interest rates rising fast, affordability to get a mortgage is much more strained.
Property investors have had it easy because interest rates have been less than 0.5% and most people’s 10 year fixed term mortgages have been really cheap.
Now we’ve got both increasing interest rates and increasing inflation which could result in a perfect storm effect, meaning house prices drop considerably.
I think that ‘official’ predictions are way off.
Experts say 9% over the next two years, so 4.5% per year – I think that is extremely conservative and way too low.
The recession is going to be long and hard. There is also every likelihood that it turns into a depression more than a recession.
With UK’s autumn statement and new budget it was revealed that the UK government are:
Spending less money on our services
Increasing our taxes (taxes that are nearing the highest levels of the 1980s)
So, what does this all mean?
Am I just doom mongering? No I’m not, I own 360 properties, I have 1,250 tenants and I’m not too far off having £100 million worth of properties.
I know property, I am an expert, I have been property investing for 16 years and doing it successfully.
So, do you know the best time to buy? Straight after the crash.
The problem with that is that nobody officially knows when the crash is going to come. But, with this housing price fall, maybe it’s already started?
I remember in 2005 house prices got really high, affordability was low and getting on the housing ladder was really difficult. This went on for 2005, 2006 and 2007, then in 2008 we had a HUGE correction.
The housing market dropped nearly 30% in about a year. At that time, all of a sudden, myself and my business partner, Mark Homer, were buying 2-3-bed houses for between £35K-70K.
These were INSANE property prices, to buy in a city that’s only a 45 minute train ride away from Central London.
So, we bought as many as we could. We bought dozens and dozens and dozens because we thought it was too good to be true.
If I could’ve bought 500 or 5,000 houses in 2008 and 2009, I would have.
The houses we were buying at an average of £55,000-60,000, are now worth £175,000-225,000.
History is about to repeat itself. But, you’ve got to be in it to win it.
I feel like there are a lot more variables and factors in this market that could push property prices down a lot further than they were in 2008.
The last crash was the banking crisis, the toxic repackaging of loans and essentially debt on top of more debt, on top of more debt which was inevitably going to come crashing down.
The banking sector collapsed, they got bailed out but lending completely dried up.
Now, it looks like lending is drying up, we’ve got dramatically increasing interest rates (which they reduced in the last crash to keep them artificially low), but we’ve also got really high inflation that we didn’t have in 2008.
On top of that we also have really high taxation which we didn’t have back then as well as the economic impacts of lockdowns and the pandemic which didn’t exist in the 2008 crash.
That’s why I predict that all of these factors combined will make this crash even more of a correction, or even a depression.
What does this mean?
I think that first time buyers will finally be able to get on the ladder, but it also means that there will be repossessions.
As people’s mortgage rates increase, they are not going to be able to afford the monthly repayments, meaning their property gets repossessed and that in turn will push prices further down, triggering an even bigger crash.
Or, the same people are going to sell and they have to sell quickly, which means they have to sell cheaply, setting a new price point for the market, bringing prices down which will also trigger a crash.
These factors and forces are going to push the property market’s prices further and further down.
When there’s fear in the market, people want to pay less so they put in lower offers, which again pushes the prices down.
As much as what’s going on in the economy, banks, interest rates and inflation affects property prices, so does the emotion, fear and panic that the market reflects pushes it down as well.
Confidence pushes the market up, fear pushes it down. And, there is fear everywhere right now.
This is the perfect opportunity for you to get in as a first time buyer, or the perfect opportunity for you to become a property investor.
If you think about how your state pension gets eroded away at every year by inflation and who knows what age you will actually get it as it keeps getting pushed back, compared to creating a nest egg through property, such as investing at £50K in Peterborough in 2008 and that same property now being worth £200K.
You’ve got to think about the next cycle. So, it’s time to get ready and be ready.
You need to:
Educate yourself in how to invest in property correctly and learn from the experts who have been there, done that
Find your local goldmine area
Go and speak to Estate Agents
Put in some cheeky offers
Line up some finance
Make sure you’re credit worthy
Think about who you have in your contacts, who might have savings and want to invest with you
Read property books
Look forward to the best and most affordable buying opportunity
Not only will you be able to make a lot of money, but you will most importantly be able to secure your financial future and create generational wealth for you and your family.
Yields are going to go up, returns are going to go up, cashflow is going to go up and affordability is going to get better.
In a way, this recession, correction or depression needed to happen in order to make property affordable again.
If you’d like to learn how to:
Start investing in property
Make, manage and multiply your money
Cash in on the crash
Not just get ready but be ready
Know what will be the best assets, at the best prices with the best cashflows
You need to reserve your place at the UK’s number one property investing education event: Multiple Streams of Property Income.
Multiple Streams Of Property Income is Progressive Property’s flagship event, it’s the perfect way to get educated in property investing to start or scale your business.
Whether you’re a complete beginner or you already own a property and are looking to diversify and accelerate your income, this is the event for you.
We reveal the many ways you could quickly make large sums of money and secure your financial future.
Learn that SERIOUS MONEY can be made by investing in property using the proven strategies that are working in today’s market: without a deposit, without borrowing from typical high street lenders and without having any experience in the property world.
You will hear from some of the UK’s top property investing experts who have been there, done that, made the mistakes as well as the multi-million pound property portfolios and they want to share their exact strategies with you.
Our experts specialise in buy-to-let, raising finance, deal packaging, serviced accommodation, commercial conversions, HMOs and other creative strategies to help you start your property business from scratch.
Come and network with like-minded people who share your aspirations to become financially free. The support network from this event is incomparable.
Meet future friends and business partners, ask questions, share knowledge, experiences and ideas to make your property journey even more successful.
If you’re serious about making a change and bettering your future, there’s no excuse for missing out on this life changing event.
When the market drops (and it’s going to drop hard and fast!) educated, savvy property investors are going to go all in and reap the HUGE benefits.
This could be you. You just need to know how. You need to make sure you are ready.
Don’t wait – get ready now!
I am predicting that this recession will correct the wealth distribution in the UK. This type of event only happens every 10, 15 or sometimes more than 20 years.
The next year will be crucial for a lot of property investors. A time where they can make HUGE, life changing profits. BUT, only if they know how to do it correctly.
You need to take advantage of the upcoming crash.
If you’d like to make, manage and multiply your money, if you’d like to build assets that create recurring income then buy property below market value. It’s time to take advantage of this massive correction.
You don’t want to miss out on this! Spaces are extremely limited, reserve yours now.