Is the Property Market Overvalued?
This is the question everyone tries to answer and the field in which many experts predict and fail.
The odd thing is there are major industry figures who have a terrible track record on this and yet the media continues to ask them the question "Is the property market overvalued?"
A classic example is Roger Bootle who, via his firm Capital Economics, continually forecast the property market was overvalued and that prices would come down since the 1990s.
It didn't stop Bootle nipping off to buy a property himself, not really the actions of someone who seriously believed what they were buying would be cheaper next year ... but there you go.
Ironically when property prices did go down during the Credit Crisis starting in 2008 they didn't predict it, then they over predicted by how much the fall would be, and so on.
But it would be unfair to single out just Bootle. Everyone gets it wrong in both directions on a regular basis.
In my ebook How to Really Buy a Property I'll show you who they are and how often they get it completely wrong!
What I won't be able to tell you is if the property market is overvalued, no one can. Even just before the 2008 crash major players were predicting further rises. No one had a clue what was really going on.
My approach is to view a property purchase over the long term - at least 10 years. You'll have to look long and hard for an area of the country where prices moved down over that period at any time in history.
However if you are specifically buying a property as an investment I devote an entire chapter to explaining exactly how you can do that ... and it really is very simple!