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The Property Podcast

TPP328: The investments you must avoid in the coming property boom

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 27 June 2019

⏱️ 24 minutes

🧾️ Download transcript

Summary

This week on The Property Podcast, The Robs are discussing the investments you should be avoiding in the upcoming property boom.  No, they’re not psychic. Nor do they have a crystal ball. But the property boom will come, and when it does, it’s important to know the potential risks and how to avoid them.  If you’ve been listening to the podcast for a while, you’ll know that Rob & Rob believe we’re currently in the mid-cycle wobble, and after the wobble comes the boom.  Quite often in a boom, people start to get excited and you could be sold something that could lose you a vast amount of money. The perk of the property cycle is that you know what’s coming next. So you can look at the last property boom and see what type of investments people were making that went horribly wrong... and avoid them.  So what are the investments you should be avoiding in the next boom? Overseas property No money down (NMD)/highly leveraged Investments that cost you to own it (Always) student pods and hotel rooms Parcels of land There are a lot of issues and warnings in this episode but it’s not just us scaremongering, you genuinely need to be aware of these issues and take them seriously.  If you’ve had a bad past experience with one of these investment types or you were affected by the last property boom, then we want to hear from you. Get in touch over on Facebook, Instagram or even the forum. And in the news this week, The Robs have found another headline that isn’t actually news - it’s more misleading. It comes from the BBC and the headline is ‘flats out of fashion with first time buyers’. According to the article, first time buyers are going straight for houses which is causing a fall in the cost of apartments.  So that’s it. Investors should stop what they’re doing and we need to go back and revise the podcast we did on city living.  Wrong.  Yet again, the media is blowing a simple comment made about the London market completely out of proportion. One comment about one city and naturally that means it’s the same story for the rest of the country.  Our Hub Extra this week is for MacBook and iPhone users, sorry Android. It’s an app called Soulver, and it’s essentially the same as the notepad app but it’s designed to work with numbers in a more natural way.  It’s incredibly useful if you’re trying to take notes and make calculations at the same time. Give it a try and let us know what you think. Meetups are next week! Some events are sold out but we do have some tickets left for others. Although they’re selling fast. If you’d like to attend, you can find your nearest meetup venue here on our website.  If you haven’t yet checked out our YouTube channel then what are you waiting for? One of our most popular videos is our UK hotspots one and people have been questioning our choices. So go give it a watch and let us know your thoughts. Don’t forget to subscribe! We’d love to hear what you think of this week’s Property Podcast over on Facebook, Twitter or Instagram. You might even have a topic you’d like us to cover in the future - if so, pop us a message on social and we’ll see what we can do. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

So it's nearly time for a property boom.

0:05.0

Whoa! Opportunity is here!

0:08.0

But so are risks and some are people who are going to try and take your money and steal that opportunity.

0:13.4

This week we warn you what's going to happen so you can avoid those scams. Welcome to the Property Podcast where every Thursday property investors come together

0:27.6

to be informed and inspired. We know as investors that after the wobble comes the boom.

0:33.2

So to make sure you're prepared, we're going to look at all the traps that you could

0:36.0

be falling into to make sure you stay safe and take full advantage.

0:40.6

And stick around to the end, because in Hub Extra, we've got a super geeky tool that's going to make your calculations a lot easier

0:46.5

Right Rob we're gonna start sounding like Donald Trump to fake news

0:50.2

Yes, it's our news story segment where we decide that the news isn't actually news and it's just misleading headlines and that's probably the polite way to put it.

0:58.6

Yeah, I was just saying before we recorded it seems like such a long time since we've actually just reported on a piece of news and discussed the news instead of just ripping it apart.

1:06.4

But we can't stop because there's yet another one that's come up this week.

1:10.0

This is from the BBC and the headline is Flats Out of Fashion with First Time Buyers.

1:15.8

The first paragraph reads, First Time Buyers are bypassing flats and moving straight into

1:20.5

houses, leading to a fall in the cost of apartments official figures suggest.

1:25.6

So Rob, investors who are buying apartments right now should be worried, right?

1:29.4

Because first-time buyers don't like them anymore, there'll be no resale market for them and prices are going to

1:33.6

fall what should they do? Even more worryingly Rob we've done that podcast on the

1:37.8

city centre living so we look a bit silly too and if you look at the first chart and the headline on this article,

1:44.4

your beliefs are going to be validated. But if you actually read the article, you may start to question things.

1:50.5

Yeah, so the headline that says that first time buyers aren't interested in flats, they're moving straight into houses,

1:56.3

and this is based on a comment made by the Insight Director at Zoopler.

...

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