Rob examines the impact of inflation on property investment, particularly in the context of the recent 3.7% year-on-year increase in UK house prices as reported by the Nationwide House Price Index. He highlights the dynamics of supply and demand in the housing market, emphasising how inflation can be leveraged to build equity over time. 

KEY TAKEAWAYS

• Inflation can be advantageous for property investors as it tends to increase the value of homes over time, allowing for greater equity accumulation.
• An example illustrates that if a property is purchased for £100,000 with a £75,000 mortgage, and its value rises to £120,000 due to inflation, the equity increases from £25,000 to £45,000 without changing the mortgage amount.
• Proper timing when remortgaging is crucial. If the market declines and the property value drops, investors may face negative equity, making it difficult to refinance.
• A long-term approach to property investment is emphasised, as values generally trend upwards over time despite potential market corrections or crashes.

BEST MOMENTS

"The Nationwide House Price Index in the United Kingdom increased 3.7% year-on-year in November 2024, saying to us that the UK house price growth is accelerating."

"If you're not in property or you're not in things like gold or silver, then your purchasing power decreases."

"If you are in an inflationary environment, the price of the home or the value of the home through inflation should incrementally increase."

"You make your money when you buy, but if the market's not timed properly, then that could lead to all sorts of issues."

"Inflation will, over time, increase the price of an asset, and if you're keeping your original mortgage the same, you'll build a hell of a lot of equity."

VALUABLE RESOURCES

GET YOUR PROPERTY DEVELOPMENT FINANCE HERE:

https://propertyfundingplatform.com/WharfFinancial#!/borrowerinitialregistration

SOCIAL MEDIA/CONTACT US

https://linktr.ee/thepropertynomadspodcast

BOOKS 

Property FAQs = https://amzn.to/3MWfcL4  

Buy To Let: How To Get Started = https://amzn.to/3genjle  

101 Top Property Tips = https://amzn.to/2NxuAQL