9:08 AM, 25th August 2020, About 4 years ago 2
It’s official. We are in a recession here in the UK and it’s the deepest of any major economy, but why does everything feel so good? Folks are on furlough by day, but by night are happy to pack out bars and restaurants for their state-funded chicken and chips.
There have been bounce back loans, state grants, VAT deferment and more. Add this to the Stamp Duty waiver and the pent-up demand from the Covid-19 lock-down, it’s easy to understand why there is a mini property boom right now. The UK economy is on six cans of Red Bull and an incredible sugar-rush high.
The economy is pumped-up right now, but next year that high will be a low. People will be coming off furlough, Government loans will need repaying and tax breaks will come to an end. We will see more unemployment with lay-offs, as well as more business failures, and the Government will find it difficult to make us feel that all is well.
The banks won’t be fooled by this Red Bull high, they have been dropping their LTV’s (Loan To Value) on property loans from Pre-Covid levels. You ask why? Because they aren’t expecting property prices to hold up.
So what about property investors and people with property businesses? That brings us onto my Five All-Time Golden Rules For Understanding How Property Prices Behave Over Time.
If this interests you, and you want to know more about the goldmine opportunity of re-purposing commercial property to alternative uses, then join Ranjan this Sunday for a FREE 90-minute web class on the subject. You’ll be taken through real examples of how you can find commercial properties that are right for re-purposing, and how you can create value uplift no matter what the property market is doing. Register Free from our website: www.SucceedInProperty.com
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