A Stock Market Crash Effects on the Property Market?
First of all…as ugly as yesterday was the stock market has not crashed (YET)….However at some point it will go down as it always has in history. So what do we property investors do? Will property prices also crash? During the Great Depression property prices did fall. A couple of summers ago we went to Argentina. I was very interested in what happened during their recent “DEPRESSION”. What I heard over and over again…People who owned property survived the inflation and protected their family’s wealth. Why? People needed to live. People paid rent. Their money was not in a bank that devalued….their money did not vaporise or get stolen by the banks! Do you really think the banking system would pay out up to 85,000 per person or company in an extreme situation? Just look at Cyprus!
That is why we feel our net worth is safer in property and more so professional hmos and social hmos. A professional HMO is a cheap way for someone to live…yes there will be non pays and issues…however compare this to a stock or a new build city centre Manchester over priced flat with ground rents. No thank you. The HMOs we do are in properties over 100 years old. They survived WW1, WW2 and the Great Depression.
Looking for a safe investment think about Professional and Social HMOs.
What do you think?