Housing market crash in 2021?

 

There is a lot of debate on whether there will be a housing market crash in 2021.

Being a property investor myself, I am very interested in knowing the answer.

However, does that affect my investing decision? Not really.

 

You may wonder – shouldn’t we buy at the bottom of the market?

Yes, ideally. But do you know when EXACTLY the market will hit the bottom? Will the deal you have DEFINITELY go through at that time? Are you just buying ONE deal?

 

The truth is, the property market in most developed countries are definitely NOT buoyant. I live in London, and the London market has been generally stagnant or even on a downward slope in the last couple of years. Will there be further price drops? Probably. But no one is 100% certain just like it was hard to predict Brexit and Coronavirus. And we certainly can’t predict how much property prices will drop when it does.

 

I have been investing in property for 7 years, and have gone through the property offer negotiation process almost 100 times – what I discovered is that you as a buyer get a lot more negotiating power in a downward or ‘bad’ market. The longer the seller has to wait, the less price he/she can get. And that is what makes a difference. Even if the market is not at its bottom, I am more likely to find great discounts.

Also if my properties are cash flowing nicely, I wouldn’t need to worry if the property prices drop another 5-10% after I have bought. I may not have bought at the BEST time, but I certainly didn’t miss out on a great yielding deal by waiting too long. In the long run, property prices will recover and what I care about is getting cash flow every single month.

 

There has been a temporary surge in price since the UK government introduced ‘no stamp duty’ to help fighting the pandemic. (Surprisingly – as the new asking prices have factored this in and there are a lot more people trying to buy during this window.) But when that ends by March 2021, things will start to cool off and we enter another great period of time to buy properties. And this works both in and outside London. If you are outside the UK, you might already be on a downward market – so act now!

Keep an eye on the market and don’t miss out on this great opportunity to build up your property empire.

 

To your success,

Emma

 

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