Property Prices Crash: A Follow Up

One of the unsung heroes in The Money Gym range of service is the email support/discussion group, which until you experience it, you can’t appreciate the power of having a supportive, fun, challenging community to call on, get feedback from and bounce ideas around with.

My blog posting about the property price plunge headlines prompted a great exchange of members recently. I’ve removed all names and identifying info, apart from the contribution from Peter Stanley, who is a VERY experience property investor, specialising in Manchester.

Recent Question: Okay, I know Nicola did her best to allay our fears with her blog posting, ‘Shock fall in house prices’ says the Deadly Express but what do you do when all the negative stuff is coming thick and fast – far faster than the counteracting, positive information? I’m in the process of buying my second buy-to-let property and all the negativity that’s around at the moment is making me wonder if I should just walk away from the purchase and wait to see what happens.

I know all the arguments against listening to ‘experts’ who don’t invest in property themselves but I’d be stupid and reckless if I didn’t consider the worst-case scenario and when the news is full of ‘expert opinion’ it’s difficult to know who is truly an ‘expert’ and who isn’t. For example, an ‘expert’ on the news last night was saying that he believes property in the UK is overvalued and that he could see a £300,000 house being worth £200,000 in the future.  Which immediately had me considering a worst-case scenario of my 3 year fixed rate ending in 3 years’ time – my property being worth nothing like what I paid for it, only being able to remortgage for 85% of its value at that time and ending up keeping the original mortgage (which is just covered by the rental income) and paying the rest of it myself.

And I know that having to subsidise a mortgage yourself is not always a bad thing, but if you have several properties that you will (potentially) have to subsidise, the thought of buying any more property can be quite daunting…

I’m sure that I’m not the only one feeling this way and I’m aware that I probably have some ‘faulty thinking’ going on here.  Would appreciate your input, folks!

Nicola’s Answer:

Here’s my brief and pithy view on the main bit of your post and you know I mean it well ok?  I just want to give you my take on it.

You said:  “For example, an ‘expert’ on the news last night was saying that he believes property in the UK is overvalued and that he could see a £300,000 house being worth £200,000 in the future”

Well, with respect, (he’s talking) absolute b&$$%ks isn’t it?  That’s a drop of 33.3%.

To put that in perspective, even in the last “worst crash in living memory” which I lived through, my heavily overpriced flat (overpriced for the reasons below), only dropped to……

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Nicola’s Week: Diary of A Wealth Coach

So, at the Money Gym Christmas “party” we are sitting nursing our second round of pre-prandial champagne cocktails of various sorts, enjoying the view from the Vertigo bar on the 42^nd floor of the old Nat West Tower, now called Tower 42.

(We are in the little bit at the top of the other tall building across from the Gherkin)

Suddenly, the last thing you ever want to hear when you are in a building that tall, comes over the music…..

“A fire has been detected in the building, please evacuate immediately……… A fire has been detected in the building, please evacuate immediately………”

And it’s LOUD!  Momentary shock, a few very British style jokes, suggestions that we should text our loved ones immediately, then the staff of the very lovely Gary Rhodes influenced bar – who have been investigating whether it’s a drill – ask us to do as we are told, and leave immediately. No coats, nothing!

When you consider that the bar is in the very much smaller very much taller, top bit of the tower and that there are two flights of stairs per floor……..we are looking at 84 flights and Judith’s knees are looking a bit horrified.  I’m wearing my highest heels and the only two who don’t look phased at the thought are Nicola K. and Steve as they have flat shoes on and knees that work.

Twenty four flights later, my legs are trembling and Judith isn’t happy.  We pause for a second at Floor 24, where Gary Rhodes’ restaurant, where our lunch is booked, is located……..and just as we do, the alarm is called off.  Phew. We pile back into the lift and return to our cocktails, breathing sighs of relief.  Happens three times a month or so apparently! 

Lunch was totally amazing at Gary’s 24 Restaurant, where the view again, was incredible….and Steve – who should know – says he’s never had a meal that good.  He’s grinning from ear to ear as we are looked after in the finest style and devour the most divine food I’ve ever come across.  The smoked eel starter was utterly heavenly (running out of superlatives LOL) although I nearly laughed out loud when it arrived at how tiny it was.  As for the chocolate pudding……….MAN!  I thought nothing could better the pud’s Steve used to make at the Pepper Tree but these just pipped his to the post on the heavenly front.

A couple of bottles of the most amazing wine – Alberino, Paso De Sencranas, Rias Baixas 2006, and Gevrey-Chambertin "Jeunes Rois" R.Bouvier 2004 – and a glass of desert wine each later (chosen by the sommelier to complement our puds) and we move to the bar to watch the lights of London come on as dusk falls, feeling mighty fine.

Steve and I wound our way home via

London

Bridge

in a most mellow mood, unlike all the commuters going home from work, bless ‘em.   

The rest of the week, I’ve been up to my neck in PHP scripts and internet marketing reports – not to mention viral marketing initiatives of several kinds.

I’ve installed Mike Filsaime’s Viral Friend software on the Welcome page of our website, after reading his excellent “Virology” report which you can download here http://www.TheMoneyGym.com/vgf/virology and I have to say I was SO IMPRESSED with how effortless it was, and how easy the instructional videos were to follow.  And I have the attention span of a gnat. 

I’ve been driving Tim Brocklehurst mad at My Viral Spiral but he’s still agreed to come and speak for us about his automated email lead generation methods on one of our “Money Gym Presents…………” days.  We have also confirmed Greg Ballard, Alan Forrest Smith, Richard White and many others for those days……

Judith has been busy with this as well as Gold / Gold Express introductory calls, while I’ve been concentrating on alerting everyone about the fab bonuses if you join Gold / Gold Express before Christmas for a January start.

I’ve also been reading Mike’s “Death of Network Marketing” report and it’s very interesting indeed.  You can see a video explaining what it’s all about – essential viewing for anyone into Network Marketing – on the blog at http://tinyurl.com/2nt6xp

Nearly Christmas and the pressie lists are appearing round here….we are going to get the tree on Saturday and then going to see the “Must See” movie of the season “The Golden Compass”. 

The official New Line website for the movie includes a working alethiometer as well as cast information and a "meet your dæmon" feature – what fun! 

I thought I had already met mine LOLOLOLOL

http://www.goldencompassmovie.com/ 

I quite like the look of “St Trinian’s” too – it’s got the fabulous Russell Brand in it…did you SEE him on Jonathan Ross the other week, again? 

You really would have to, if he turned the full force of his smile on you, wouldn’t you? 

Cor!  His book and DVD live set are firmly on my Xmas list…as he would be if model

Jordan

(no, not that one!) had not got there first LOL. 

Russell’s new love is confirmed as model Jordan Paris, who has worked for Vivienne Westwood, GMTV and Richard & Judy………those well known designers.

Sorry, but X-Factor is rubbish now so I’m reduced to this! My money’s still on Niki even if she can’t spell, the girl can sing.  Nothing original like Shane or Leona Lewis though.

Have fun, it’s the final this week and we will all be out of our misery!

Glad to be alive!

Nicola

Mike Filsaime Predicts End Of Network Marketing

Many’s the time I’ve tried Network Marketing in the past;  I’ve always quite liked the tiered passive income style business model, and I’ve really liked some of the products………portable air filters were great as I’m asthmatic and allergic (I could even stay at a friend’s house who had a dog and two cats without suffering), I loved video email and I’m quite keen on the whole e-learning thing, and spreading the word about that.

However, many "opportunities" rely on inviting prospective interested parties to come along to real life presentations, and I always felt that this was the real limiter on most people’s success with Network Marketing, and that is why we haven’t focused on it very much, in the Business lane Of "The Wealth Highway" at the Money Gym. 

However, Network Marketing is not so far away from referral or affliate marketing, so I’ve kept my ear to the ground….especially as some of our Money Gym clients are active in organisations like Agel.

Here’s an interesting video that one of the most respected Internet Marketers, Mike Filsaime (author of the famed "Death of Internet Marketing" report and creator of the Butterfly Marketing software), has made, introducing one of the most successful Network Marketers, and giving you access to a new report that tells you why traditional network marketing is dying, and what to do to make sure your Network Marketing business doesn’t die with it!!

Only When Video Is Done, click here to find out more

“Shock Fall In House Prices” says the Deadly Express

(Don’t panic, Captain Mainwaring!!)

I don’t normally buy the papers but I just had to today – the Deadly Express is at it again.  You may remember that my friend Maria Davies particularly (inspirational speaker and experienced property investor), always makes people laugh by holding up two copies of the Deadly Express – one printed six months before the other – to make her point about newspapers using anything as a headline to sell papers. 

One copy she holds up says "Property Prices About To Crash!" and the second says "Property Market Booms: Doom-Mongers Proved Wrong!" or something similar.  Gets a laugh every time.

However, if you are an aspiring or fledgling property investor, you might have noticed that it’s not only the papers who are at it this time, even the very lovely chap on GMTV was at it yesterday, reporting that property prices fell by the biggest amount in ages – "0.8 of a per cent" was what he said.  By my admittedly shaky calculating that means that if a per cent is 1.0 then 0.8 of 1.0 is……no, no idea sorry!  Hopefully Judith will come to my rescue shortly, but in the meantime let’s examine the Deadly Express article in more detail. 

I have tried to distill the facts from the extremely emotive feature – at one point they assert ""the property market coudl suffer a similar slump next year to that in America" with absolutely no reasoning to back that up.  The emotive stuff was quite shocking in that they make inflamatory assertions in between cold hard facts, with the two bearing no relation to each other!

"House prices are falling at their fastest rate for…..

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