In this episode, Hazel delves into the intriguing question of whether house price inflation is a con. Drawing from personal experiences as a property investor and coach, the discussion highlights the historical context of house price growth and its implications for today's market. Hazel examines the disparity between house prices and real wages, the role of the "Bank of Mum and Dad" in helping younger generations enter the property market, and the impact of inflation on perceived property value.

KEY TAKEAWAYS

• House Price Inflation vs. Real Value: While house prices may appear to be increasing, the real value of housing has not significantly risen since 2007 when adjusted for inflation.

• Affordability Crisis: The gap between house prices and earnings has widened, with current house price-to-earnings ratios being around six to eight times the average salary.

• Leverage in Property Investment: Leveraging properties can significantly increase potential profits. For example, spreading investment across multiple properties can yield higher returns compared to investing in a single property without a mortgage.

• Market Predictions: Predictions for future house price growth vary, with some forecasts suggesting a modest increase of 4% over the coming years, while others.

• Strategic Buying: Successful property investment requires careful purchasing strategies, such as buying below market value or in areas with strong growth potential.

BEST MOMENTS

"Is house price inflation a bit of an illusion? The real rate of house price growth has slowed down dramatically in the last four years."

"The affordability, therefore, is not there like it used to be... 57% of all mortgaged first-time borrowers last year used the Bank of Mum and Dad."

"In real terms, prices are still lower than they were in 2007... house prices compared to inflation... they're not worth any more than they were in 2007."

"You have to buy correctly and not just rely on the fact that house prices are going to keep going up in value."

"It is, in my mind, still a fantastic time to get into the market... understanding the market conditions and buying correctly."

VALUABLE RESOURCES

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ABOUT THE HOST

Having started her career as a professional, classical musician, Hazel de Kloe also had a personal quest to become financially free. 

She and her husband built a successful, multi-million-pound property business, next to their own careers, but soon realised that true freedom doesn’t JUST come from being financially independent…

Having meant so much to her family, it has been her passion ever since, to inspire, educate and empower others on their journeys towards this 'Holy Grail'. 

During one particular property mentoring session back in 2009, she had a powerful recognition of exactly how to facilitate this. Nicknamed now, The Wealth Whisperer, she has a unique way of getting to the crux of what is needed to help fulfil this quest.

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