In these up-precedented times there’s a lot of un-certainty. The financial markets have crashed, businesses are closing their doors, possibly the country will be on lock down by the weekend.
It’s difficult to see any positives in this situation – however we will get through this, markets will recover and rebound.
The big question is when? that’s anyones guess currently, we could be in this position for between several weeks and several months.
So what can you do?
Firstly take stock of the situation, minimise the downside and look to maximise the up-side.
It’s highly likely that the leisure and retail industries will be hardest hit, we are already seeing staff being laid off from restaurants and leisure operators. Airlines are struggling recently Fly-Be went under. There will be more and possible larger operators.
Sir Richard Branson has asked for a £7.5 Billion fund to prop up operators in the airline industry – it’s hard to see how big companies like Virgin able to maintain a long period of effective grounding.
This all will force the recession that has been expected by many (myself included) for some time – every 7-10 years there’s a downturn.
Property prices will drop, we could see 20% drops if this climate continues and possibly more depending on how the economy reacts to government stimulus.
However we have had 10 years of nearly zero interest rates, one of the governments tools for stimulating the economy is to reduce them but this time they have no where to go – this could as some predict cause a bigger problem.
All of this sounds very depressing and there’s a lot of doom and gloom around but there are some positives.
We are entering
One of the Buying Opportunities Of Our Lifetimes…
Currently everything is looking cheap, the FTSE has dropped to the 5000 level (as of writing this) from around 7700 a few weeks ago.
Silver is hovering around £10/ounce, precious metals generally do well in this type of economy, so would expect ordinarily for them to rise. It seems that a lot of traders that have been caught short with positions on margin have had to offload metals to pay the brokers back.
Bitcoin is also hovering around a pretty low level (£4500)
All of these will rebound and exceed all time highs once again, it’s just that no one knows when. There could also be more dropping to come.
The best thing to do if you believe in the fundamentals is to pound cost average your way into the market – buy every week/month regardless of price. Keep your head and stay in it for the long haul and never invest more than you can afford to loose!
Property will follow suite soon and prices will drop as the appetite has fallen out of the market. People that need to sell will have to accept much lower offers.
Which gets us to the real point (it is a property blog after all) if you’re looking to buy property the next 12 months could be the absolute best time to buy. You may never again be able to purchase property as cheap as you will over the next year or so.
However you need to be prepared and armed with the tools to do so, finance in all likely hood will be tight so you may be forced to use more creative tactics to secure properties.
But with all the negative sentiment in the market in general and landlords that have been hit in the wallet recently due to tax changes etc etc and now the prospect of their tenants not being able to pay their rent it’s all shaping up to be a perfect storm for the educated investor to profit from.
If you want to know how to source all the deals you need and profit from the impending crash get in touch – I’m putting together a private mastermind shortly to arm you with my knowledge and experiences from the last crash so you can take advantage of this one.