Property And Cryptocurrency

PROPERTY AND CRYPTOCURRENCY

100% I have to confess to more than just a ‘soft spot’ for property as an asset class. I have spent 17 years in the industry, working given mortgage holidays, and there is currently a 6-month process for a landlord to serve notice on their tenants. It also remains to region of £60,000. For most crypto fans they are deploying far less. Indeed, it has also proven popular for those who are INVESTMENT across residential, commercial, social be seen just how bad the unemployment trying to grow their deposit to purchase a housing, hotel developments, lending, and rates will be as the furlough scheme is property. Further, crypto is far more flexible prop tech. I’ve been personally purchasing gradually withdrawn – which quite rightly and liquid in case of “a rainy day”. rental property since 2005. provided a lifeline to 8.9 million people over the summer, and a lot of breathing space My only exit from property has either been

The vast majority of those years have been for paying rent. either via re-mortgage taking 1-2 months, dreamy for property investors; broadly rising or a sale over 3-6 months; not great in the prices for the time (despite the exception Similarly, there is a stamp du- current uncertain climate. Crypto can be of the 2008 general financial crash) great ty holiday, for properties up sold, in minutes, on a major exchange, rental yields, a generally supportive political to £500,000 until March next those purchasing the bluechip cryptos environment, and, personally, I’ve been lucky year, yet none of these meas- (Bitcoin, Ethereum, Litecoin) are able to to have mostly good tenants. I remember ures are long term fixes – in- take advantage of a daily market of tens the heady noughties, when a vast ecosystem deed the Center for Economic of billions of pounds – they can sell some of property companies sprung up, helping and Business Research (CEBR) or all of their crypto should they need to. people replace their hated 9-5 jobs with a projects that property prices rental portfolio. will fall by 14% in 2021. As Crypto today feels to me much like property we survey the wasteland of the in the late 90s; few people were expecting

More recently, the property market has economy as we attempt to re- it to sky-rocket, nor were many people been somewhat in the doldrums. Even cover from the COVID recession, conversant with building an empire from before COVID hit, a survey by Shelter in late property investors fasten their it. Crypto businesses seek to “educate” to 2019 found that just under half of working seatbelts and expect, at best, the broader population about the crypto people living in privately rented homes in a bumpy ride. Indeed, my per- industry – it is no longer the preserve of

England would be unable to afford rent sonal prediction is that 2020 will the niche and nerdy. for more than a month if they lost their be a 3-5 year high for property job. To break this down: even without a market. Indeed, according to the FCA over 3% of the

COVID recession, a significant proportion UK adult population owns crypto already. of people would be unable to pay their rent In the past few weeks I have spoken with if they lost their jobs, within one month. a plethora of property professionals, be In my opinion, in the near future, as the they buy to let investors, letting agents, recession really starts to bite, the population

There is no starker warning about an over- investment agents, or property mentors, will be starkly divided into those who have cooked property market, before you throw all of whom are rightly worried about the done their homework on diversifying into a whopping coronavirus recession at it. short-term outlook for property. They this asset class, and those that haven’t. 2020 has been a strange time for the propthan choice. In the quest for yield, even erty market. Understandably, no-one could the most loyal property enthusiasts are sell nor buy, over the strictest lockdown having their heads turned up the year to period, and more recently, with restrictions date growth stats for crypto: at the time easing, there was some pent-up demand, of writing Bitcoin is up 41% and Ethereum as those who has been desperate to move is up 166%. were able to do so. However, in practise, are diversifying out of necessity rather we have stuck a giant sticky plaster over the problem. I see property and crypto as wildly compatible and supportive of each other. To Katharine Wooller, Managing Director

Landlords and owner-occupiers alike were participate in buy to let property in the South East of the UK, you will need in the DacxiDacxi