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The Property Podcast

TPP379: Inflation v Deflation - PT 1

The Property Podcast

Rob Bence & Rob Dix

Education, Business News, Business, News, Investing

4.82K Ratings

🗓️ 18 June 2020

⏱️ 24 minutes

🧾️ Download transcript

Summary

This week on The Property Podcast, it’s the first of a two part special on the important topics of inflation and deflation. These are two things that every property investor should know and understand. Why?  Because they’ll both impact you massively.  Most people don’t understand the basics - and that’s what Rob & Rob are fixing right now with today’s episode.  Are we heading into a period of inflation or deflation? That’s a question that you should be asking yourself at the minute.  First, you need to go back to basics and understand exactly what inflation and deflation are. So in this week’s episode you can expect to learn: What is inflation? Why investors like it Why do we need inflation? How inflation works What causes deflation? The difference between good and bad deflation If you’d like to learn more about inflation, you can go back and listen to this podcast episode and you can take this course over on the Property Hub University. Be sure to tune in next week as The Robs are going to be taking a look at the last 10 years since the financial crash, what’s happened since then, what’s likely to happen in the future, and what that'll mean for you.  You’re not going to want to miss it.    In the news this week, we’ve got some interesting data from Hometrack. Their usual report focuses on the main 20 cities across the country, but once or twice a year they take a look at all 65 cities they gather data on. It’s a PDF document so while it’s difficult to share, Rob & Rob delve into the findings on today’s episode.  One interesting finding was that areas in the south (that had previously performed strongly) are starting to struggle; like Milton Keynes, Southampton, Luton and Reading. Rob D is putting it down to a reverse ripple effect from London. The biggest surprise was the town that’s seen the biggest growth in the last 12 months which was Rochdale, growing by 4.8% - phenomenal! Other areas performing well are Birkenhead, just outside of Liverpool, Bolton and Mansfield. Some areas you might not have considered before.    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. Make sure you’ve liked and subscribed to our YouTube channel where we upload new content every week!  If that wasn’t enough, you can also join our friendly property community on the Property Hub forum. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hello everyone, Robby here with Rob D and you are listening to the Property

0:06.5

Podcast. Now this week we're going to be looking at inflation and deflation.

0:10.4

No, not of my waistline over lockdown.

0:13.0

It's actually much more important.

0:15.0

In fact, it's so important that every property investor

0:18.0

must understand what it is and how it impacts you,

0:21.0

but most don't. Welcome to the Property Podcast where every Thursday property investors come to be informed and inspired.

0:33.7

Are we heading into a period of inflation or a period of deflation?

0:37.3

It's one of the biggest topics of our time and you've probably already read and heard

0:41.5

people talk about this and you've probably heard some

0:43.6

contradictory opinions. Well in this week's episode and next week's we're not

0:47.4

just going to give you our views we're going to help you understand

0:50.1

inflation and deflation and also importantly understand how it can affect you as an investor.

0:55.4

And make sure you stick around for Hub Extra at the end where we'll be sharing more resources

0:59.3

that will help you build on your understanding.

1:01.3

For our new story this week we've got some really interesting data from Home Track.

1:06.0

Home Track is a monthly report that we frequently talk about when new data comes out,

1:10.0

which looks at 20 cities across the UK and how prices there have changed.

1:15.0

What they've done this time and I think they do once or twice a year

1:18.6

is they broaden it out and they show data from all 65 cities that they keep an eye on rather than just

1:26.1

the 20 that they report on regularly.

1:28.2

So you start seeing data for these places where you don't normally see city level results.

...

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