Property prices at “top of the market” Robert Kiyosaki
Even the author of the great classic, Rich dad poor dad,
says that the property market is all topped out and it would be a mistake to
buy right now.
I was recently listening to a radio show produced by the
Man who made multimillions from real estate and he said he cringes when he
hears young people talk to him and say that they bought his book and I’m now
building a portfolio. He urges caution and wonders why people are buying at the
“top of the market”.
Robert also thinks that we are already in a recession and
heading for a 1930s style depression.
I want to stress that this is one opinion.
This is an extremely pessimistic view but it could come
to pass depending on what governments and central banks do.
The game of chess is not over yet and there are multiple
combinations of moves to be played out.
US Federal reserve officials planning restrictive
measures to curb inflation, including higher interest rates.
These measures could drive the country and the world into
a recession.
ECB warns that a housing correction could put banks at
risk of defaults and hit low-income families.
There is no doubt that printing money over the last 12
years has contributed to inflationary pressures and price rises that we have
not seen for 40 years.
On top of all the problems we’ve had in the last two
years there is now a war going on in Ukraine which is threatening to cause food
and fuel shortages in the west.
My own view is that the West has miscalculated and made
wrong moves on the chessboard leave and us exposed.
Russia is one of the few countries in the world that can
be self-sufficient. Why, because it has its own supply of food production,
manufacturing, oil and gas and other minerals.
The truth is the west needs Russian products more than
Russia needs the West.
There is already evidenced food shortages in many parts
of the world such as Sri Lanka and Singapore.
Major food suppliers such as India and Malaysia have
banned the export of certain products to preserve supplies for its own people.
Of course, the Russian people will also suffer from the
sanctions but their government is not a real democracy and they can sit it out
longer than Western governments.
The drive to green energy has also left the west exposed
now that we have sanctioned Russian oil and gas exports.
However, Saudi Arabia has agreed to step up production.
How will all this this affect property?
The truth is, nobody knows for sure. But if the west goes
into recession caused by the war, higher interest rates and inflation, there is
no doubt that people have less money to spend on properties which will force a
correction and prices.
Higher interest rates alone will force up the price of
mortgages.
Buying and selling at auction.
Buying and selling property through auctions is a totally
different animal from the usual way most people buy and sell a house, which is
through a High Street estate agency.
This could be a course in its own right as you need to
understand the merciless rules of the game in auctions. Six key differences:
·
Commitment
·
When the hammer goes down
·
Fees are usually higher
·
Opportunities
·
Buyer beware
·
Do your homework BEFORE the auction
My own agency will be offering both additional buying and
selling as well as the opportunity to sell or buy at an auction.
JOIN ME LIVE FOR UK PROPERTY TALK ON SATURDAY MORNING AT 10AM
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