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Its time to buy

Why It Cant Be Different This Time....

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The answer lies in HUMAN NATURE.

If we roll back time to the Northern Rock run on the bank last year, people panicked because they feared their savings would be lost.

It is no different with investment properties, second homes and holiday homes.

Fortunately, the goverment gave a cast iron guarantee that it would protect savers. Will it protect peoples equity? Its highly unlikely. How would they do it if they could? Would the goverment write cheques out to home owners to make up the difference?

For the many people sitting on paper gains, maybe £25K, £50K, £100K+, it is the very same people with the same emotions. What will people do when this equity slips away, wiping out years of growth? I doubt people would have the patience to sit out losses, as it is inevitable the next great money spinning idea is bound to come along. Peoples attentions spans seem to get shorter with time.

Ultimately fear will create some people to break ranks and sell off property, creating the very same panic seen vividly during the Northern Rock crisis. As the cost of borrowing goes up, a bigger proportion of landlords will slide into negative cashflow. Theres not enough money out there for everyone to cash out at a profit- remember only about 5% or so of the total properties bought and sold dictate which way houseprices go.

Its everyone for themselves.

Edited by notanewmember

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Hence the emotions of HERD MENTALITY thats why we are getting swamped with FOR SALE signs around the country. Alot of people are not sleeping very well these nights with all the DOOM and GLOOM news everywhere.

THE FLOODGATES have opened up .

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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