Property Expert: What To Do With High Interest Rates

[@PhillCurtis]

An important point on mortgage Overpaying that may have been missed.. Speak to mortgage provider you are with and find out whether you are close to the 60% LTV (if you bought your property and the value on their books has gone up, your LTV will have improved) Say for instance HSBC, if you reach 60% LTV (or below it) you will find that that is the best deal you can get. When you come to negotiate an interest rate. Say if your 62% LTV, you can over pay to the 60% or just below it so when you come to renegotiate in say 2025 you'll be able to access the better interest rate deal. My point: Trying to reach the best interest rate deal is helpful. Obviously not everyone is going to have reach the best rate bracket, but find out which bracket you can get under. *(House prices change over time of course, so you may find your house price could go up or down depending on your area)

[@DB25k]

Yet another excellent episode on financial commitment. Every guest you interview has a great insight with answers that educate us. Keep this content going, both of you bringing right people to the table of discussion

[@SengerTube]

Why is it a thing that one person can buy more land than they need to live in? Since it’s a finite resource, shouldnt we limit how much one can have so others can buy it too?

[@marissakeynes2532]

Because it's a free market.

[@stevo728822]

Rob Dix has got 17 years of property investment experience. But that was 17 easy years when rates were fairly low, mortgages were easy to come by and governments threw money around like confetti.

[@ln5747]

So he started in 2006 and you just said he's had it easy investing in property - were you born yesterday? 😂

[@persona250]

The last 17 years have been a walk in the park compared to the 17 before that . Going back further fixed rate mortgages were only available after 1989 . people in the 70s and 80s were on variable rate mortgages and were absolutely shafted .

[@MorningtonCrescent]

In addition to Rob D's calm approach to analysis, the fact he doesn't beg "smash that like button" is important to me too, as he is happy to see the channel grow organically on merit. Great interview!

[@georgec2894]

Why is seller price anchoring something that keeps prices high/stable long-term? Doesn't such inherently illogical behaviour merely cause a sharper and/or greater drop in house prices further into the future... and then such sudden movement causes further 'skittish' human behaviour during subsequent years..?

[@philiplythgoe7173]

What about investing in REIT's as well as stocks, less hassle than owning houses to rent out... Owning one house to live in is enough trouble for me...

[@MikeReeves-d5j]

Great guest, I’ve been following Rob and Rob for years. Fabulous interview and loved how T pitched the same question, should I buy in Manchester or Durham, this time Rob explored the options and offered a really balanced answer. Unlike previous a guest who just dismissed T’s question as foolish. Great work as always Guys 👍

[@LRL.]

Which will further cripple the North. Wages are already considerably lower than the South, volume of affordable properties on the market and general stock is incredibly low. Young buyers are struggling to even purchase a home up here because too many Southerners earning a much higher wage are purchasing them for BTL 😂. The North is cheaper for a reason, adding to the problem won't end well, there are many dead locations in the north that do not appreciate.

[@WilliamBrown-e3t]

@@LRL. "buyers are struggling to even purchase a home up here because too many Southerners earning a much higher wage are purchasing them for BTL".... have you got any figures to back up that claim? On the one hand you claim property prices are increasing (because of 'southerners' doing BTL - highly unlikely) but on the other you say there are many dead locations where house prices won't go up! I think you'll find lack of affordability is not a north/south/east/west issue - but one felt all across the country (probably most acute actually in the southeast despite the higher wages).

[@LRL.]

@@WilliamBrown-e3t figures aren’t needed, the estate agents will tell you and it’s known in the communities.

[@gaurasrspublishing]

For experienced property investors there's nothing new here, but that's not a criticism, this is an excellent balanced view of the situation which is invaluable for people new to property investing or thinking about it - the great benefit of getting into property (or any other investment business) now compared to 25 years years ago is the vast amount of knowledge that is available for free.

[@martinhammett8121]

This set up is brilliant , great, informative with quality guests great chat with great delivery excellent !

[@Alex-cw3rz]

I think Homes Under the Hammer made me interested in property from a young age and naturally the theme tune is playing in my head now

[@MakingMoneyPodcast]

One of the true anthems of day time TV

[@marthasolomon7971]

Interesting content from an investors perspective but equally as tragic thinking about the impact of people’s lives who rent from investors who don’t see the human element of their role in providing a home as a service.

[@djx2]

Brilliant guest and some great questions.

[@iaingosling3445]

Good advice on property as a business. Been an accidental landlord twice and always thought that the effort for 1 rental is a pain. The markets were never good at the occasions to push for additional properties and make a business of it (or so I thought). Probably just didn't consider it enough.

[@MakingMoneyPodcast]

We thought that was great advice from Rob too, made a lot of sense. Thanks for the comment Iain

[@Trigger1973]

Super content. Very inciteful questions and great replies also. Very relevant as I’m an accidental landlord with two who is undecided whether to sell one because of legislation.

[@angelagardener1234]

I absolutely love that fact that I found this channel its wonderful in its content. Its not a aspiration its a fact for me that I will never need a mortgage thanks to my Law Education other Businesses relaunch next year after having a very challenging period from the Pandemic and the loss of my late elderly Mum which has given me more to time to find people who know more than me who can teach me what I need to know and reading Tony Robbins Money Master the Game book and Unshakeable books, Wealth Chef and other Wealth books which have been Game Changers for me I have had a love reading from a young age and ensuring that I have the latest information when its needed to come to me. Life long learner is good for me. I was raised watching my Stepdad build from the ground up during the mid 80s as a Architect and Construction Owner for his own company so yet again learning is key for Property Development.😊👍

[@marissakeynes2532]

Just make sure ur not just reading and that u end up doing as well.

[@IAmebAdger]

On the concentration risk thing, I do think all knowledge and skill being equal it is technically more sensible to keep property at half or significantly less than half of your portfolio and put the rest in index funds or something. But as they said, if you're killing it in one field in particular on the back of your skills/knowledge there's nothing wrong with raising that percentage and getting more exposure while you're running hot.

[@WilliamBrown-e3t]

Much of the property gains over the last 30 years has little to do with skill - but rather the pure luck of investing during a period of falling interest rates, cheap money and strong house price growth. Easy to think you're a genius in a market where the tide lifts all boats. How many property investors are 'running hot' now that rent barely covers mortgage repayments, expenses and taxes.

[@marissakeynes2532]

​@@WilliamBrown-e3tExactly and there's too much risk nowadays. He certainly hasn't sold it to me in this episode.

[@iplaywaytoomuch]

A man that lives in rented trying to make the argument you should think of your house as just a home and not a financial instrument...

[@eheld27]

We need a first time buyers episode

[@dolphine675]

I feel the only way anyone should ever be a landlord is by investing their own money .....that is to say if a lender needs to get involved the damage to UK PLC is not worth whatever selfish returns you think you can parasitically draw from your tenant . A tenant on 2 months notice will be damaged by the insecurity and they will not invest time and money into your property for their own well being . Not everything in life is about those numbers they print on your bank statements

[@NigelSharmer-ct3kv]

I'm sick of Sainsbury's parasitically extracting returns from me when I buy pasta. People *need* food. The govt should step in.

[@dolphine675]

@@NigelSharmer-ct3kv supermarkets are an example of what happens when capitalism is not governed , they become overwhelmingly powerful and infuencial

[@paulduncan789]

​@@NigelSharmer-ct3kvIf the pasta on offer at Sainsbury's is too expensive, or not to your tastes, then it is quite easy to shop around for pasta that is cheaper or tastier. Not quite so easy to shop around when it comes to the place you live, is it?

[@marissakeynes2532]

​@@paulduncan789But it's like that everywhere not just at Sains. They're all damn parasitic and don't let me start on the government....

[@frmcf]

Great interview. Ads are cringe AF.

[@bdoubleeb3039]

It seems almost impossible to cover the mortgage with rent after tax if your in a high tax bracket unless you put a huge deposit down…….

[@greenrachel1005]

But that huge deposit if you put in bank saving account you will receive 5% risk free rate

[@TooGrim27]

Great video guys. My fixed rate ends july next year. And it was really interesting gets robs point of view, that its not that rates have gone up but they've always been too low and we actually have a correction of the rates. Time to say goodbye to my 2% and say hello to 6 😂

[@WilliamBrown-e3t]

If rates remain at 6% something's got to give - either massive rental growth or house price falls - to make BLT worthwhile for landlords.

[@kellywalker4494]

It’s all about time. The amount you pay in rent only ever goes up. However, in a stable market your mortgage payments stay the same , which actually means it’s getting cheaper.

[@imbarmstrong]

New podcast! Nice one T! (And Carol)

[@MakingMoneyPodcast]

T and Carol send their regards 🙏

[@minimad8793]

great interview guys. One thing did cross my mind though and I may look through the video again, but did you ask about rent fees and the reasons behind some rising more than the national average. Not a renter myself but have friends who have had theres rise more than 8 percent.

[@marissakeynes2532]

Never heard of rent fees. Maybe u means rent increase?

[@george6977]

Being a landlord is stressful; owning a global equity ETF isn't.

[@markjames4021]

Taxes will continue to rise - look at history. Legislation will will continue to increase - look at history. Western government debt is rising exponentially and needs to be paid for, and unlike many assets, real estate cannot be moved; it's at the mercy of policy makers charged with collating what's required to fund a national debt that currently pays 300 million each day in interest alone. The growth/equity baked into the property cake will increasingly accessed. These are unequivocal facts that should have been included given they form a significant factor that one must consider.

[@WilliamBrown-e3t]

BLT market is dead wood for most small-time hobbyist investors. Affordability is incredibly stretched and it's unlikely that house prices (or rents) will appreciate like they have in the last 15 years. Meanwhile, your financing costs are high and legislation is making BTL a real hassle. Unless, you're a cash buyer with the ability to buy several properties outright (to get decent diversification), most people would be far better investing in the stock market.

[@stevo728822]

The biggest threat to the residential property market is on nobody's radar. Correction, there is one real estate guy in America who mentions it on some of his videos. It is something we think of as really really boring and that we have taken for granted for decades. It's always been a footnote to a buying a property. But this thing is heading for a radical change over the next 10 years and will impact every property in developed markets.

[@mrbushpilot]

Which is?

[@marissakeynes2532]

Haha u talk big but stay sketchy. 😅

[@DerekIngram-u4e]

Great video, thank you

[@roxychic367]

This is called rentvesting, rent where you want to live and invest else where

[@Simply1ism]

Too many good points to repeat. 👌

[@joeallen781]

RELENTLESS!!! I love it

[@MakingMoneyPodcast]

Cheers Joe 🙏

[@joeallen781]

@@MakingMoneyPodcast You guys doing excellent work

[@PeterHitchens-d6x]

What a shock about the Sensate....I was expecting you to come back saying "Nah, it's useless!" Tell you what...how about not disrespecting & patronising your loyal viewers & stop shilling any old crap?!

[@grannythebuilder395]

When I was a young woman, at a time when fixed rates were rare or nonexistent, interest rates increased to 15%. It was horrible but we lived through it and came out the other side. Many people lost their homes, and repossessions were common.

[@YukalayleeGames]

Obvious response is that price to earnings ratio now is much worse

[@WilliamBrown-e3t]

Did people have 35 year mortgages back then?

[@madeleinebell559]

@@WilliamBrown-e3t Some did

[@madeleinebell559]

@@YukalayleeGames That's not really relevant, is it? The issue is that the housing market has been resilient to shocks for many years. There is nothing new under the sun

[@grannythebuilder395]

Also, never say "This hasn't happened before", because it has many times.

[@rollthetape88]

@28:24 ....awkward...

[@marissakeynes2532]

This has put me right off investing in property.

[@HorrorLadSteveo]

I must uave got very lucky. I dont own and live in my own home but have a rental portfolio

[@Michael-lu9eu]

Hi Damo tehe 🎉

[@MakingMoneyPodcast]

👋

[@DavidSmith-do6ji]

Very good :-)

[@MakingMoneyPodcast]

Many thanks!

[@Marco-cd7jb]

History teaches so much, unfortunately so many read so little. The mean average of the 'BOE' since 1694 is almost exactly the same as where we are today. The economy is factually contracting; the Government will panic and working with the 'BOE', even though established to work independently after reckless activities, will cut rates in a panic for many reasons inc. rising unemployment, before we head to even higher rates as a direct result of 5 decades of terrible financial management. This is a paradigm shit and no amount of incredulity will reduce the cost of borrowing - 'Caveat Emptor' would seem more relevant and if in doubt, consider Paul Volker's response when in charge of the Federal Reserve the last time we witnessed similar conditions.

[@marissakeynes2532]

Which was what?

[@PhillCurtis]

There is a low inventory of property at the moment But if people struggle and need to sell then we may see that changing.(and if some buy to rent landlords are selling more properties because its harder on their own mortgage rate - we may see more properties available) But given the demand in property and low amount of housing being built we may see stability in house prices. Time will tell..

[@moodobusiness]

Your mortgage is not the least amount you’re going to pay. If you pay your mortgage off, you won’t be paying anybody to live there other than the ongoing maintenance costs.

[@goober-ll1wx]

forever is a long time...

[@schumanhuman]

UK house prices 'suprise' up 0.9% in October. 18 year cycle still in play..

[@johnmunro4952]

The value of agreed sales were up in October. That's NOT a rise in house prices. If you have two 6 foot tall men and you cut the legs of one of them, did the other guy get taller? The bottom end ( or entry level) of the market is being starved of affordability. Prices are falling.

[@schumanhuman]

@@johnmunro4952 Haha. Bears gonna bear.. The number of transactions will stay muted for some time and price discovery is therefore limited but that doesn't mean prices didn't rise last month. It's early days yet for a turnaround but Jeremy' Rhyming slang' Hunt is planning on extending 95% mortgages on top of and Rishi's stamp duty cuts. There just won't be the distressed sales for a crash and the market is adapting to higher for longer rates, the expectation of higher rates to come is worse than the actual rate, and that will bring in more buyers at the margins.

[@WilliamBrown-e3t]

Yeah, but they've fallen in real terms after adjusting for inflation (which has been as high as 10% over the last year). Always got to look at your real return 😀

[@schumanhuman]

@@WilliamBrown-e3t True, but many assets also fell in real terms so in relative terms they did ok, especially as since this comment prices rose Nov/Dec. 2024/5 the returns will be high in nominal and real terms, should peak out around 2026.