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  • Property-a-holics

    Crashing out of EU good for property market?



    I know this matter will be on the mind of every Property owner in the UK ...

    But If we crash out of the EU how will it effect the PRS?

    My own feeling is If your in property for the long term and you have good yields and low Leverage  under 60% I think you would be fine

    In my own world I look for opportunity to purchase high Yielding property

    So I would welcome a crash in property prices. If all the forecasts are true The UK will go into recession

    My own history has always been when Recession hits and Property Prices fall I buy back into the market as much as I can

    I don't have great fears if we crash out - In fact I think personalty It could be a fantastic time to make money

    The plus sides could be lots of property for sale at lower cost

    Interest rates could fall again

    I'm I being too optimistic ?

    This could be the best thing to happen for Landlords who wish to expand

    We have such a lot of doom at present But Doom is a good thing

    The old saying is "when you see a boom you have missed the Opportunity" and the reverse is true

    If we do crash out it, could be the very time to buy and build great yields, If you have the cash to fund deposits

    I am happy to see the clowns in Westminster do their stuff as I know its going to result in opportunity

    The only worry I have is Labour coming to power But I don't think they will come to power

    We could see a very interesting chapter unfolding in the UK

    There would be a period of shock and then a major recovery as the UK realises it can live outside the EU

    Even I would be looking at London to invest if it goes bump as I think this is where the bargains will be ...

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    You speak a lot of sense DL.

    Savvy people will be making a lot of money from the uncertainty surrounding Brexit.

    I also have faith that the London property market will stabilise.

    See >>> The big bad ass Brexit brief for landlords

    Interesting times for sure! Smile

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    There is a saying in the Army

    Blood ?

    Mud ?

    ... and then open green fields ?

    The country will go through bad, but good always comes from bad!

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Interesting post DL. 

    A lot of very experienced landlords have been saying that they can feel a recession is imminent. 

    I am only a couple of years in to the game and have been trying to expand as quickly as I can. Do you think I should pause for a bit and stop spending capital so I have a decent amount when the recession comes along? My only fear is I could be waiting longer than expected and will end up missing out on opportunities!
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    Buy on a good yeild and you cant go wrong but be prepared to see currently held property drop in price and if you have an LTV above 60% you could see your deposits used on a property purchase wiped out

    But the key is not to panic in negative equity  just dont sell just take positive cash flow and buy more with cash deposits

    I did this in the last Crash My property values went down by over 40% But it gave me the opportunity to buy more property at a bargain price

    Its all about the way you look at property investment

    Folk think I am foolish never to factor in Capital Growth  But when we have a crash capital growth soon evaporates

    If I had been a London investor I would have sold when Osborne announced S24

    The good money will be out of the London market unless the investor is looking very long term and livening on good yields.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Hi DL,

    What if there is no crash. Let's say we have a a Brexit deal agreed and leave on acceptable terms. The market can see a slight surge and heat up for couple years. I agree eventually there has to be a crash, but what if it does not come for 3 to 4 years?

    Then the opportunity to buy at discounted rates will be this summer up to October/December. After that alot more investors/owner occupiers will return to the market making it harder to find deals. I'm just highlighting the flip side of the coin. I personally would rather secure a deal now with good yield and low leverage rather than wait for something that may come in a few years where my circumstances could have changed as well as bank lending terms.

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    There may be an agreement to leave with a deal

    But there has been damage done now thats why the London Market is falling

    It will all depend on two things we crash out with out a deal Or we stay where we are now with a long decline but slower

    The UK is now in a place which is not good

    If you were an immigrant would you opt to come to the UK with its History

    I think most now will choose to leave or choose another EU country to live in

    If this is the case highest immigration is in the SE of England so it will be hit hardest




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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Such doom. London is not the UK, it has been overpriced for too long.

    Re numbers,  this last 1/4 saw an all time record number of EU citizens living in the UK. Bet you didn't hear that on the BBC.

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    What can happen? Will a slight recession reduce demand? No, there is such pent up demand that it will take ages for equilibrium between supply and demand to be reached. House prices may adjust and a Corbyn hate regime will put many propeties on the market but there is nothing to suggest a big fall.

    I live in mainland Europe and I can tell you our business in Germany and France has been slowing down quite rapidly. A recession in Europe will affect countries very quickly, less than the UK. Spain with around 38% of under 25 unemployed and those that are being around 55% on zero hours contracts do not see any improvement. There are massive funds looking for a home, Stataoil in Norway and Qatar both are keen on the UK. They do not find the Euro a good bet.

    The greatest threat is Corbyn whose economic illiteracy and wrecking  would be short lived.

    I am on the plane to the UK to Bristol this afternoon to look at two more properties!

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    Good post & Agree

    Here's a question for you

    "This could be the best thing to happen for Landlords who wish to expand"

    I am one of those LL's looking to expand - what's your advice in regards to expanding NOW or waiting?

    imi

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    Hang back Bank your cash and watch

    The issue for Landlords will be funding deposits

    If there is a crash and Landlords go into negative equity they cant raise funds from property they currently own

    The Bargains will come but this is where cash will be king

    I have seen this situation more than once

    Ironically I dont see a Major crash in the NE I could see highly inflated areas such as Manchester having a problem because everyone is piling into the North Now

    every time I see a Boom a fall will happen

    Its waiting for that fall the opportunity comes again.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.