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The Property Podcast

ASK191: Does it make sense to sell up before a crash? PLUS: Should I worry about my tenant staying too long?

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 18 June 2019

⏱️ 8 minutes

🧾️ Download transcript

Summary

The Robs are back again for another fantastic episode of Ask Rob & Rob where they’re talking about property crashes and tenants staying too long. First up we have Pete who has a question about the 18-year property cycle. He’s clearly been listening to our podcasts and taken the university course, as he’s correctly identified that we’re about 7 years away from the next property market crash. Pete already has two properties that he bought for around £100,000 each and is hoping that in the next 7 years they’ll have pretty much doubled in value. If this was just before the next market crash, would it be wise for him to sell up pre-crash? For Pete, his properties are all about the monthly rental income, however he doesn’t want to miss out on that potential capital growth. So should he sell up and pocket the capital growth? Or should he keep hold of his properties but run the risk of being back to square one? Find out what The Robs have to say on this topic. Next up we have Bartholomew who wants to know if he should be worried about his tenant staying too long. He has a tenant who’s been in his property for the last seven years and is wanting to know if this tenant has any long-term tenancy rights. He’s also looking at purchasing a property that’s had the same tenants for the past three years. If they decided to stay long-term, do they qualify as sitting tenants? So what should Bart do? Should he try and evict these long-term tenants? Or should he see it as a blessing that they’re dependable who haven’t caused him any issues for the past 7 years? Find out on today’s Ask Rob & Rob. Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply). Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours. Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:08.7

Welcome to another episode of Ask Rob and Rob. You know how this works. You send in questions. We answer them.

0:14.9

Everyone goes away a bit more knowledgeable and hopefully a little bit more happy as well.

0:19.2

Today's questions do not disappoint. We've got a couple of corkers, but I'm sure you can match them so here's how you can send in a question of your own.

0:27.0

Yeah, super simple the number remains the same. It's

0:30.0

013 808 triple 035 that's 013 80808.0035 that's 01

0:33.4

808 30035 or you can go to Property Hub

0:37.8

dot net forward slash ask

0:40.4

whichever way you do it we don't mind we just want a nice question and you know what Rob we've got two lovely ones today. Let's listen to the first one.

0:48.0

Hey Rob and Rob, my name is Pete and my question is about the 18 year property cycle. From what I gather... is then what do we do when the crash is imminent?

1:04.0

For example, I have two properties that I've bought for about 100,000 pounds each

1:10.0

and if things went amazingly well, just to keep things simple, in seven years time, let's say these

1:15.6

properties are now worth double, at $200,000 each.

1:19.4

Do I sell just before the crash and pocket the capital growth or do I keep hold of them and then

1:26.6

risk losing all that capital growth of being back to square one.

1:30.7

Obviously for me it's all about the rental income each month but I don't. I want to

1:35.0

to miss the opportunity to pocket in all that extra capital growth that I will

1:41.2

have built up.

1:42.2

So yeah, what did we do? Because I'm worried that if I sell, which

1:45.6

sounds great and I've got all that money in the bank, paid off for mortgages, I'm worried

1:49.6

that we may struggle to buy more after the trash happens because banks and lenders are keeping

1:56.5

hold of their money and then I'm not going to be able to buy any more properties and

...

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