This Week in Property: The Latest News (1st April 2022)
Take a look at what our CEO Gill Fielding has to say about this week’s property news…
It’s not just about the money…
Although I’m known as a money person, wealth isn’t just about the money for me and the point of it all is to provide freedom of life choice and that includes freedom of investment choice and I have just the fund for those of you in that position! There’s a 5 year conservation bond issued by the World Bank where proceeds will help save the black rhino which is critically endangered as well as provide funds for two South African reserves. What a wonderful idea and it’s fantastic that part of the pay out will be calculated by the success of the initiative and the higher the black rhino numbers the more you get. It’s a great idea and let’s hope many other bonds are created to do good in other areas and for investors, if we get a reasonable return and we’re helping the rhino or some other challenge then that works as a win win for all.
The property market in the UK continues to rise and shows no signs of stopping and figures just released by Savills state that the average property price rise in the last year was £24k and according to Savills that represents 77% of an average annual salary in the UK. Now any specific property or person may have different outcomes with this calculation but for certain a property, over a working life, will earn as much, if not more than the person who owns it and works for living. This demonstrates completely the difference between passive and active earnings. The employment is clearly active and the property price rise is passive and of course the passive gain can be replicated many times and you can buy two or more properties but you can never have two or more jobs (unless they’re part time ones). It’s logical then to get as much money into passive investment and assets as you can so that your wealth is growing whilst you sleep – there’s no easier ‘job’ than that!
Cash is King – and Queen!
The Royal Society of Arts (RSA) has just completed the first review of how cash is used in the UK for 3 years and they found that 10 million people will struggle to cope with a cashless society as we increasingly go digital with money. In fact there are still 1.5 million people who don’t have a bank account. We know there have been hundreds of bank branch closures which limits access to physical cash and there are many people who would say ‘so what’ – let’s all go digital. But for those who are on very limited budgets or for those who struggle to control their money, cash is vital as it’s the easiest way to take control and manage money appropriately. With digital payments it’s just too easy to pay for things at the swish of a finger and before you know it all your money has gone. Going completely cashless as a society takes away choice and options for people and will create more debt and more people in financial difficulty and that’s a shame and it’s a form of discrimination that the digital drivers don’t acknowledge.
How much for a punch?
Much of the news this week has been about will Smith slapping Chris Rock at the Oscars ceremony last weekend and I won’t comment on the rights and wrongs of that but what I have just read is that demand for tickets for Chris Rock’s stand up tour have gone through the roof and ticket prices have gone from $46 to over $400. Apparently in the 48 hours after the incident, ticket sales increased 25 times. I wonder then if Chris Rock is ‘happy’ that he got hit as he’s likely to be substantially richer as a result. And how much more could the ticket prices be if they had actually had an all out brawl? Or if Chris Rock had bled all over the Oscar room floor? It’s a fortunate consequence of what initially looked like a bad event for Chris Rock and I’ve started to think that maybe it was staged all along and a very successful and lucrative publicity stunt!
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