354: Is now a good time to invest in the UK property market?

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Today we’re looking at whether or not now is a good time to invest in property. 

And I guess you’re here with me today because it’s a subject that interests you – whether you’re actively investing already or just thinking about taking the first steps, you want to grow a portfolio and create some sort of freedom from it, but it’s been a crazy 18 months generally with Covid, and specifically in the property market its’s been a bit of a wild ride at times, so before we jump into your next deal, we need to understand whether or not now is the right time to make that commitment. 

So that’s what I’m going to try and help you figure out in this episode.  The basis of what I’m discussing comes from a presentation I gave to our current Inside HMO Investing students during a virtual open day we hosted for them as a little bonus a few months back, so what I thought would be really interesting is to keep the data I shared then, around about the start of June this year, and update it with the most recent statistics and market insights as well to see how much things have changed since then.

And don’t worry – if you’re listening to this at some point in the future, a lot of what we discuss today will still be useful for you, so stick around.

Listen to this episode below:

Here’s what we discussed this time:

  • Everything should start from a 10,000 foot view before getting lost in the details – why are you even thinking about investing? Chances are, it’s got something to do with money
  • If the reason why we’re investing is so obvious, why is the execution so difficult? The two biggest struggles or objections I hear at the moment are 1) current property is too expensive; and 2) what happens if I buy now and the market crashes?
  • Why is the market the way it is…
  • What if the conventional wisdom about property is flawed? Stating that you make your money in property when you buy puts too much emphasis on finding ‘BMV’ deals which is virtually impossible in today’s market. There needs to be another way!
  • Long term profits from rental income are where real wealth and freedom come from – not from negotiating a discount on the purchase price
  • Even if you’re a brand new investor, you have exactly the same opportunities and chance of success as the seasoned professionals – every day we all wake up in the same market and have to work with what’s in front of us. Yesterday’s market is gone!
  • If the external market factors are the same for everyone, yet some people achieve success whilst others don’t, then it can only be internal factors, (our actions, our mindset, our consistency and execution) that determine our success
  • The first insight from the past 2 property cycles – slow and steady, consistent investment over the long term, WITHOUT trying to beat the market is the only way to ensure the growth of a portfolio that weathers the crashes whilst making the most of the boom periods.
  • The second insight from the past 2 property cycles – the UK property market is (almost uniquely) able to weather recessions better than other geographies or investment types, and bounce back from crashes quicker.
  • The third insight from the past 2 property cycles – property price growth still has a long way to go in the current market before it reaches similar levels that preceded the previous two crashes. Current property prices aren’t over-inflated, this is simply the new normal, and they’ll likely continue to increase over the coming years before they drop.

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The Links We Mentioned:

Join me for an upcoming free training where I’ll be showing you how to identify the perfect areas for you to invest in HMOs, as well as a lot of other insights into starting and growing your own HMO portfolio – insidepropertyinvesting.com/freetraining

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