Samuel Leeds’ Predictions and Hot Tips for the Post-Covid Economy!
Samuel Leeds has been investing in the housing market for the last 11 years, pulling off hundreds of wide-ranging property deals. Here, Samuel gives his predictions for the trends which will emerge in property investing and the opportunities a changing economy will bring over the next ten years.
Bigger wealth divide
Samuel’s first prediction is that the wealth divide is going to get even bigger. He strongly believes ‘the rich are going to get richer and the poor poorer.’ His warning for the middle classes is: ‘You won’t be so comfortable for much longer.’
“The way that everything is set up, even during this lockdown, is that unemployment is rising, and people are being forced to become entrepreneurs or to rely on the government and on jobs. I’m beginning to see a greater divide happening, not just in the UK, but all across the world.
“I don’t like this. I am a capitalist, but I’m a social capitalist. I like equal opportunity and that’s what I’m trying to create by doing my YouTube channel – giving everybody the same chance to get information which can make them wealthy and financially independent.”
Samuel points to people earning £30,000-£40,000 a year and says they are in for a big wake-up call:
“Those middle class people have been feeling pretty comfortable. They’ve got two cars; take one holiday a year; but they’re completely relying on the government or someone else for a job. For those people potentially it’s going to get really tough. Again I don’t like it, but it’s just how it’s going to be in my opinion. That’s going to happen over the next two to ten years.”
Property prices will dip – but not everywhere!
Samuel is convinced property prices will dip following the coronavirus pandemic but says in many parts of the north of England prices will head in the opposite direction.
He also believes that people should not be fooled into thinking that prices will not be affected, simply because the outbreak has not yet impacted on the market:
“In property there is always a delay. Even in the 2008 crash, it took about six months before people realised there was a crash because home sellers are stubborn – they’re like ‘but my house was valued by the estate agent for £250,000 last month. That was last month but this is today. A lot happened in the last month, but they just don’t get it!
“There were over half a million property sales paused because of coronavirus. It has had a big impact on the economy, so that’s my next prediction. Property prices are going to dip in about six months but in some areas they are going to rise.”
He says house prices depend on the area, and highlights Liverpool as a place where ‘the only way is up.’
“In Liverpool house prices have bottomed out. They are only going to go up. Four years from today, you just watch, Liverpool house prices will have gone up but then there are other areas where they will have gone down. You can’t just give a blanket answer to what house prices are going to do because every city has its own economy.”
Government will encourage spending
Samuel predicts the government is going to start encouraging spending ‘like crazy.’
“They’re going to be saying ‘spend, spend, spend’ over the next three to six months because they want the economy to pick back up. When people are not making money, and people are not spending money, the government gets less in taxes.
“If I charge you for my product, I use that to spend money and the government are winning. They’re getting tax, tax, tax. But when I’m not making money or spending money, the government isn’t making money. If the government isn’t making money, the government isn’t happy. They’ve paid a lot of money out – I know they’ve been printing money. That’s another story. But they’ve had to pay a lot of money out with furloughs and different things.”
His advice is to do the exact opposite to what the government wants:
“Don’t spend, spend, spend – save and invest instead! Invest in properties, smartly and strategically, and also invest in yourself. Don’t spend on stupid stuff right now and treat yourself to unnecessary luxuries. That’s what they’ll want you to do. They’ll say sure you can have a personal loan to go on holiday. Don’t do it. Be smart.”
More millionaires will be made
At the rich end of the divide, Samuel says there will be more millionaires than ever before.
“Right now, there are about 20 million millionaires on the planet. That’s going to go up. As a result of lockdown and corona, people who were entrepreneurial employees are probably going to be saying, you know what, I’m going to really push hard now.
“I believe property investors are going to start thinking about how to scale this. That’s one reason there will be more millionaires. I’ve just had an interview with Dr John Demartini. He says he’s made a lot more money during lockdown than ever before. More millionaires, more poor people. The divide is getting bigger.”
Interest rates will remain low for years
While some people believe interest rates could shoot up to 15 per cent like they were ‘back in the day’, Samuel predicts they will remain low for years to come.
“Interest rates are going to stay low. You can fix interest rates right now for up to ten years. I don’t think they’re going to shoot up anytime soon.”
More legislation in the SA market
Samuel’s next big prediction is that legislation surrounding serviced accommodation will tighten. He says the good news is that the people who understand how to react imaginatively (like he intends to do!) will be the ones to cash in.
“More legislation is going to affect the serviced accommodation market, and it will increase the demand. What do I mean by that? So, there’s some certain investment strategies and investment types where they’re very legislated. Service accommodation is not one that is.
“Right now, you can rent out a property on Airbnb and, as long as it doesn’t break the headlease or the mortgage terms, there’s no licensing. There’s no legislation around serviced accommodation. I think that’s slowly going to start to change. As that starts to change, it’s going to put people off because at the moment service accommodation is such a ripe, fantastic thing to do.”
Samuel says more investors than ever are involved in serviced accommodation as a result of buy-to-let landlords being penalised by Section 24 issues.
“They’re having to be creative and rent their properties out on booking.com and Airbnb to avoid the tax changes of Section 24.
“They’re also realising it gives way more cash flow anyway, so more people are doing it and it’s great. But it’s going to get legislated. That is going to put some people off, but the people who get around the loopholes and problems are just going to get richer and richer again. Watch it get legislated and watch me step around it and continue to make money while others get put off.”
HMOs will become more popular
Samuel is forecasting that HMOs will become more and more popular and rents will rise rapidly.
“As unemployment rises and divorce rates go up what’s going to happen is one household will turn into two households. People who are paying for a studio flat or a two-bed apartment are going to suddenly want more affordable accommodation and they’re going to look to rent rooms.
“Rooms right now are a bit like, ‘what you live in a room?’ That’s kind of weird. You share a kitchen? That’s not going to be weird in the next few years. It’s going to become more popular and rents are going to go up. So, HMOs are going to become very popular. Of course, there’s the issue of licensing legislation. I don’t think HMOs are going to get more regulated.
“Article 4 is going to come into more areas which is going to mean you’re going to need planning permission. The way to get around that is to buy HMOs now so that you have the grandfather rights.”
My training company will expand internationally and create more successful students
Samuel’s final prediction is a personal one. He believes he will have more success students than ever before, as his training company expands internationally ‘during these years of opportunity.’
“I don’t think there are many people like me who are super successful in property and are multi-millionaires who are putting their stuff out on YouTube every single day like I do.
“I have a training company – the biggest of its kind in the UK – because I want to help people. I vowed that if I ever became successful I wasn’t going to be one of those rich people who hide away. I don’t even take a salary from the training company.”
“It’s already big and it’s going to blow up. It’s going to go international because more people from overseas like Holland, America, Germany, Africa and China will want to learn about property investing.”
Samuel says he is incredibly excited to be putting his courses online.
“I’m excited about the legacy it’s going to leave. I’m also excited about being able to help some people become rich who would otherwise have fallen on the poor side of the divide.
Will Samuel’s predictions come true?
The man himself is confident his predictions will come off:
“It’s June 2020 right now. I hope you’re reading this in June 2030 – ten years after this came out and you’re going to say Holy Moly, how was Samuel right on every single point?
“I have to say that it’s not because I have a crystal ball, but because I’ve observed history. I’ve got good mentors. I can see patterns. I know where people are pushing things and their agendas and it’s just obvious what’s going to happen.
“I predicted so much in the past and have been right. I predicted the Section 24 and Article 4 impact. I predicted what happened in 2009 when I was investing, and they were always telling me not to invest. I’ve always been right up until now. I’m happy to be wrong. I don’t think it’s going to happen.”
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