House prices at all time highs - what next?

Do you believe in market cycles and that forecasts can be accurate?

Take a look at the following chart from economist Martin Armstrong who has been predicting these things for Governments and Banks for a long time.

(Note: Graph is 'not to scale' just indicative of Dates and direction
Source: Martin Armstrong, see below)

Also note that the average UK house prices overtook the pre-crash record for the first time recently and US home sales also reached eight year peak and prices all time high. (sources below)

Many people may have forgotten what happened when the prices were this high last time and in a bubble just 7-8 years ago.

The inevitable crash was postponed/minimised by Government intervention and keeping dishonest bankers in business. Politicians supported their friends at the Banks with taxpayer money, so they could continue to launder for criminals, charge excessive fees, rig interest rates in their own favour, pay big bonuses and all the other fraud that has been going on and continues.

This money has flowed away from the 'people' and into the stock market, corporations and CEO pockets. The FED didn't raise interest rates as they probably want a good Christmas of spending from people and enough time to fill their boots.

Politicians have been giving themselves pay rises, whilst the public coffers have been emptied.
Banks don't have enough real assets to cover all the money they gamble with and pay their 'top' employees.
Governments all over the world are in debt and many take out new lines of credit, to try and pay the interest on their previous borrowing. Eventually this will stop.
The race is on between America and a European country to finally admit it can't pay it's debts.

On top of that, the wars and instability being caused is creating mass migration of people looking for a better way of life. So when 'immigrants' turn up expecting a little help, everyone forgets how well off they have been in the past and the fact they are also 'children' of migrants themselves.
These poor people have seen the media and 'adverts' stating America and Western Europe are the richest and best places to live in the world, especially as they have accumulated so many of the worlds resources over the decades/centuries.
(See the TV and movies that sell you the ideal lifestyle, as opposed to the News which is designed to keep you in fear and looking for answers/protection from the Govt.)

OK, I think I'm ranting now so let's get back on track.


So what is likely to happen next?

The bankrupt Governments can't continue printing money at these rates to put into the stock market and interest rates only have one direction to move. When that happens and the markets contract, the stock market bubble and property (real estate) bubble will deflate as well.

My guess is that there is about 1 year (maximum) to get your investments in order and get ready to stick it out for the long term.  The first signs will be from America or a defaulting European country in the next few months before it goes mainstream.


What can you do to hedge yourselves against it happening?

- Sell any properties that are highly leveraged right NOW, which are bringing in a low yield.
When interest rates increase and prices drop, these are the ones that will suck your cashflow and reserves dry.

- Don't buy house for the sake of growing your portfolio (or because you want to move to a new house), only invest for yield with bigger deposits than you would normally want to put down.

- Leverage can work in your favour in an up trending market but it is even more dangerous in a down market.

- Speculators and those investing in new build, big blocks and the new bubble of student accommodation will likely be hit worse.

- Pay down as much as you can on your principle residence.

- Property and business is once again going to become about the long term sustainability as opposed to short term and quick returns.

I learned my lessons the hard way from experience 7/8 years ago. Fortunately I don't have to repeat it this time.  Will you learn from past experience or is another rude awakening required?

The good news is property will become more affordable for people to buy their own homes and there will be the opportunity to buy businesses based on income and yield, instead of simply speculating with borrowed money.


More information here:
http://www.economicconfidencemodels.com/
http://www.theguardian.com/money/2015/jul/28/house-prices-in-england-and-wales-hit-record-high
http://www.propertywire.com/news/europe/us-existing-home-index-2015072310783.html

Maxed Out - How much have you borrowed?

Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders

I recently watched an interesting movie called Maxed Out by author and director James Scurlock. It was filmed in America in 2006 and it nicely leads into the current credit crunch (now so widespread it is in the dictionary)

The film reveals how banks are lending more and more money to people and actually hope that they can't repay their debts, so they have to pay late charges and more interest. Banks will turn up in universities and offer banking services and credit cards to students willing to give them their details in exchange for a t-shirt or a back pack. Applications are sent in the post to children, the infirm and those that are dead or already bankrupt, so much for up to date and correct credit files (or spying records).

Get the book from Amazon: Maxed Out: Hard Times, Easy Credit



http://www.youtube.com/watch?v=YiOVNWoWTAU

When asked about not lending to the vulnerable and those at the lower end of the economy, therefore reducing the amount of defaulted payments, the answer was simple: That is where the majority of the money is made. The banks and credit card companies prey on the weak and those with little financial knowledge.

If you can't pay or default, the creditors sell the debt to third party companies (like the mafia used to do) and they will then hound you with calls, letters and threats to get the money out of you. Even as far as contacting neighbours and family to shame it out of you by causing embarrassment.

Is your credit file incorrect? They don't care. You want to pay off your debt? They'd rather you didn't. Want to borrow more? Of course.

The US government has been unable to pay the interest on it's loans of around $9 trillion (the US National Debt clock), so it borrows it from the Social Security 'trust' and the amount keeps increasing every year. The UK national debt is estimated at around £1000 billion, how much of the interest is paid by your pension money? The winners in this game? The BANKS!

Do you believe that you should pay back money that you borrowed, then good on you. Did you know that banks want you to stay in debt and end up taking around 2 times interest on the amount you borrowed? So for every pound of principal it is an additional two pounds of interest and charges. Whilst people are worried about what they are going to do, where does this all lead?

To an ever growing amount of debt, people struggling to make payments day to day, poor health and even to suicide! Just remember you are not the only one or alone, there is always a way out. If you are struggling, then seek help now! You can contact Denis or Morris at Just Debt on 01423-541317 for a free consultation to discuss your debt and finances and they will help you find a solution.

After all it is 'just debt' and living your life is so much more important than worrying about things that might never happen! Remember, you don't actually ever own or lose any thing. We are just custodians at the moment, till it is our time to leave them for future generations - take the time to look after your health, your family and those you care about. It's not all about the money!

You can buy the DVD from www.politicaldvds.co.uk for a couple of pounds.

"There's a lot of shame and a lot of guilt attached to the issue of money mismanagement...Everybody feels like the other couple has a perfect marriage and a perfect everything...Turns out, I've met Ken and Barbie and they're broke." -Dave Ramsey

"The size of our problem out there is very large. I regret to say that the word billion does not encompass the nature of the problem." -Alan Greenspan

"Maxed Out does for credit card companies what Super Size Me did for fast food."

The Death of Property Investing Report by Simon Zutshi

Is Simon Zutshi REALLY spelling the death of property investing during the credit crunch?

Have you seen this report? click here to get the report

This underground report is quietly kicking up a storm on the internet at the moment.

Not least because the author Simon is a No.1 best-selling property coach, and mentor to hundreds of professional property investors.

It is a thought-provoking, candid yet controversial account of the current market. If you're not happy believing everything you see in the papers, then I recommend reading this to find out what's really going on.

Download The Death Of Property Investing here: Free property report

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A couple of the 165 comments about the report:

"Great report Simon and definitely worth reading. Everyone is asking these questions and it is good that you’ve pulled them together in a simple report. Page 14 covers nicely what a lot of people are thinking" - Bobby Gill

"Thanks once again for a no-bullsh!t common sense report Simon - Once again, all meat without the fat!" - Mike Michaelides

"Excellent report, I agreement with your sentiments, all investors whether professional or otherwise must get clear in their minds money can be made in a falling market." - George McCormack

The economy today and what it means to you!?

Do you really want to read about the economy at the moment?

People are either 'struggling with problems' or 'dealing with challenges'. How do you describe it? As that is how you will find that it is.

Credit is not now readily available as it was and it is called the credit crunch. Banks are not lending to each other or to individuals. The economy actually needs this at the moment and although it may mean people are suffering, it is necessary for the long term - the party of over-borrowing and throwing money away is now over. Not what anyone wants to hear but it is fact.

Petrol prices are going up, along with home fuel and food costs! All sounds bad so far right?


Everything will get better... There are more opportunities in a re..cess..ion than at any other time. The economic climate is challenging AND it WILL change for the better. It is a matter of sticking it out. There are many ways to get through these tough time, mainly by spending less AND earning more!

SAVE MONEY: Cut back on your travel. Eat less (bonus for your diet!) Reduce your utility bills (contact me to find out more: SAVE money on your bills). Spend less on clothes and luxuries.

EARN MORE: Get a part-time job, some entrepreneurs I know are going back to work to earn more as they know it is only temporary. Earn an extra income with a part-time (or full time) franchise, cheap start up (contact me to find out more: EARN a passive income)

DEBT MANAGEMENT: Are your debts becoming unmanageable? Speak to someone about it. Once again I can recommend someone to you who will be able to deal with your finances and give you more options than struggling through the week, trying to make ends meet and have it affecting your health.

Daniel Latto (Think Tank Group) gave me a great Star Trek quote:

"Ferengi Rule of Acquisition 109: Dignity and an empty sack is worth the sack."

ie. Pride -v- an empty bag, people will settle for an empty bag so that they can save face. Every one does what is right depending on their circumstance, no-one does the wrong thing intentionally. Change your view point and take a look at your finances with a view to surviving over the next few months.

NETWORKING: The positive people and still attending networking events and investing in their educations. Those that do are the few that will succeed. A lot of business is done between people and referrals. Those that are positive and can help you make a difference to your business are those people that will be remembered and still be making money. Look around and see if the peer group around you represents where you want to be going...
(Check out the events to the right of this blog and below in one of the other posts)

MINDSET: Develop a positive mindset and look to the upcoming times as challenges to overcome and know you will come out better and stronger for it. The people you spend your time with are how you are going to turn out, in business and in life. Hang around with positive people with solutions. Those passing out problems should be avoided and that includes the newspapers and TV!

You can't wish away the months, you just have to get through it. Learn the lessons now so you don't have to repeat them in the future and just KNOW that it will all be better.

Well I had to get that off my chest. I'll bring you some good news tomorrow! Just remember the following:

"Good timber does not grow with ease; the stronger the wind, the stronger the trees" - J. Willard Marriott

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Property investors: unable to get finance or put deals together? Find out How to Invest in Buy to Let Using Rent to Own And Never Visit a Bank. Lease options and rent to buy. Find out more here: The CashFlow System


Save Money on your Bills and Earn an extra income: Contact Bobby for more info.


SAVE Money on your bills
EARN a PASSIVE Income

Free tickets - Property Open Day in London, Saturday 19th July 08

Rob Moore & Mark Homer
Co-Founders & Directors
Progressive Property
Full Time Property Investors & Authors

You lucky people in the south have an opportunity to attend a seminar on property this weekend. If you've not had the pleasure of hearing Rob Moore speak on the current property market, you are missing out!
Progressive Property Open Day
My friends Rob Moore and Mark Homer will be talking about the opportunities in the Property Crash and how you can benefit from it and still make money!

Why am I posting this message in the early hours? Because there are limited places and Rob has offered some free places - and I wanted to make sure you got one of them!

Go to this site now and get registered:
Progressive Property Open Day

Mark has had an Investor/Entrepreneur streak in him from an early age. He has had several successful small businesses and has had many investments in the stock market. He was obsessed with finding the very best investment vehicle and was in a position where he could measure the results of his existing portfolio with the newer developments he was also involved in.

Rob is a trained coach and self made businessman and investor. He regularly speaks at events on business, property and personal development and featured in a prime time TV show for Living as a Mentor. Rob became director of a new build property investment company in a very short period of time after realising the potential of property and learned a huge amount about ‘what really works’ in property investment.

They are authors of the book "The 44 Most Closely Guarded Property Secrets" and & "Make Cash in a Property Market Crash."

Rent To Own Lease Options Presentation, 22nd and 24th July 08

Rick Otton and David Lee will be in ESSEX on the 24th of JULY (hosted by Pat Cunningham) and WEST SUSSEX on the 22nd of JULY 08 (hosted by Nicola Cairncross).

There is limited seating and you will need to CLICK through on this link and register with David to attend. You can book for either event on this link:
Rent To Own Strategies

Make sure you register now to get half price entry.

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Learn how you can generate positive cash flow right here in the UK in a way you thought was only possible in America, Australia, New Zealand and every other country in between!

David Lee is coming to Essex and WEst Sussex with Rick Otton to share their secrets on "How To Invest In Buy to Let, Use Little Or No Money, Never Visit A Bank And Have No Mortgage Debt!"

You could follow the herd with a buy-to-sell strategy that can sometimes go like this:
- Buy 25% below market value
- Get completely stressed out managing and refurbishing
- Incur months of mortgage overheads and resell costs
- Also sell below market value for a quick sale

Or, you could try something that often goes like this:
* Buy around 15% below market value (easier to find)
* Do zero refurbishment and have my tenant-buyer do it themselves
* Incur weeks of mortgage overheads while they do the work and have minimal resell costs
* Sell at full market value, not giving away your profits, in exchange for time for tenant to buy later

You can find out more information and book onto the workshop here:
Rent To Own Strategies

The Landlords Guide to Surviving the Credit Crunch

'The Landlords Guide to Surviving the Credit Crunch' is aimed at Landlords who want practical ideas and advice on how to survive the credit crunch.

It looks at the credit crunch and options available to the landlord. How does the UK property market compare to what is happening in the US? Where are interest rates headed and what does this mean for LTV's.

Check out this well written report by Toby Hone at:
www.the-home-place.co.uk/page21.php

It has been compiled over the last 6 months with input from professional landlords, mortgage brokers, solicitors and other industry professional. Mortgage costs in the UK are expected to go up by another 1.5% over the next 12 months , which will mean an increase of 45% in mortgage costs and landlords need to act now to ensure they can overcome these additional costs.

Find out what options are available to you now:
www.the-home-place.co.uk/page21.php

"If you think nobody cares that you’re alive, try missing a mortgage payment!" - Bobby