Why the House Price Crash is a SCAM
Property investor Rob Moore argues the UK house price decline is engineered by central banks and governments, not a natural correction. He claims 12 years of near-zero rates created an artificial bubble, and rapid rate rises are forcing borrowers into default and repossession. Moore sees it as an opportunity to buy cheap properties and profit.
Chapters
Why the house price crash is actually a scam. I've got 1, 2, 3 main reasons why the house price crash, which by the way is very real and is happening now, but 3 big reasons why it's actually a scam, why it's actually unnecessary, why it could be prevented, but why the central governments and especially the central banks do not want to prevent a house price crash. You see, we don't need to have booms and busts. We should be learning from history, except we never do, because we seem to go through these cycles continually of boom, bust, boom, bust. Why do we never learn from the past? If you go back just 3 decades, you can see 2 boom-bust cycles, and we do not learn. What is wrong with humanity? And this huge price crash— oh, just quick one actually, let me know in the comments how much you think the market will crash by. I believe it's going to be significant. I believe it could in fact be bigger than 2008. In my local area, it was about 30 to 35%, and that came down within one year. That's a crash. And by the way, in my local area prices have already dropped 15%. One of my friends who's got 111 properties, his properties have dropped 25%, and this is in less than a year. And I don't think it's over. So let me know in the comments, do you think it's going to be 20%, 30%, 40%? Um, let me know. Now, um, the reason that this house price crash is a scam is because the bubble's been artificially created. And bubbles have to burst, and what goes up must come down. And how is this bubble being created? Because they didn't let the market recover properly from the last crash. So crash of 2008, instead of letting all the banks go bust and starting to repay the debt and rebuilding the economy from the ground up with solid fundamentals, you know, they just bailed out the banks and papered over the cracks and dropped interest rates to 0%, and all money was free. And that lasted 12 years. Now imagine if you were 18 12 years ago and now you're 30, and to you then 0% interest is normal. That is not fucking normal. Interest rates on average are 5 to 6%. That is normal. There's always a cost of money. So you need to pay the cost of money now, which is 5, 6% interest, which is reasonable, realistic, makes you manage money well. Or you pay nothing now and you get free money and you pay the cost for decades to come. It's like the lockdown. The lockdown probably cost a trillion. Now all these, you know, bounce-back loans and free money and shut the world down, and we will be paying that for a decade or more to come. So you should always be skeptical of that. So this 12 years of no interest rates just essentially blew this bubble right up. Free money got a load of people into debt, got a load of people paying mortgages. Now look, the banks want you in debt, the banks want you paying mortgages. Get this for disgusting, right? I heard recently from someone quite high up in Visa that the Visa mandate is to get everyone in debt. Now my wife said to me, 'Well, of course, they're a credit card company.' But how can it be good for society for a company to have a mandate to get everyone in debt? It's an absolute scam. So imagine giving you free money for a decade You're all in debt to the trillions. And then I tell you what, then what we'll do is like the boiling the frog, slowly, slowly, slowly. And then rates— do you know rates have gone up 14 times in what, less than a year? So you're all in, you're in debt, you think you've got free money, you don't know any different, it's all good, it's raining money, and now you're trapped. And now interest rates are turned, turned, turned, and they go up and up and up and up, and you can do fuck all about it. And you see your mortgage go from $800 a month to a grand a month to $1,200 a month to $1,500 a month, and in the end you're like, ah, and you have to give the keys back. And then your property sold 20-25% below to someone like me, by the way, you know, who's an investor. Now look, I would love that this doesn't happen to the average person, but as an investor, you know, I like to beat the banks, I like to beat the markets. You know, do you know that the banks, um, Royal Bank of Scotland wants to be the biggest private landlord in the UK? So if the banks are buying property, that tells you you should be buying property. And if the banks want to buy all the property in the country, They can manipulate the system in order for them to get all the property. And that would be lend you a load of money, get you into debt, and then spoil the frog slowly, and then bang, loads of repos, and then the pension companies will gobble it all up. I'll tell you this: in the crash, the pension companies and the banks will gobble up shitloads of property cheap. Property they sold to you and then turned the heat up of the interest rate. It's a fucking scam. It's a massive scam, but you know, you've fallen for it. Because most people don't know any better. So interest rates now hiking up, and you know, a good friend of mine, she's actually watching this live, he's now paying 7% on his mortgages. I bet he was paying 2% 3 or 4 years ago, um, and it's just gone whoop. And of course that's hit the prices down. Why does interest rates going up push prices down? Let me know in the comments if you know. Why does interest rates going up push prices down? The simple answer is people's mortgages are much more expensive Therefore, they have to give the properties back and have them repo'd, which costs the bank a load of money, or they have to sell them cheap because they need to sell them quick, and it reflects back into the market and prices come down. Now, the reason this is a scam is what the governments could have done, and I believe should have done, is, yeah, okay, I don't mind dropping interest rates for a bit, I don't mind sort of temporarily looking to settle things down, but they should have been gently and gradually increasing interest rates many years ago so it's not such a shock for people. So they're not so stuck, so that they understand the cost of money. But of course, that wouldn't have benefited the banks and central governments. Um, so now we're seeing a big crash. Like I said, my good friend, his properties have dropped 20-25%. Um, £400 grand property is now worth £300 grand. Uh, and I've seen 15% plus drop. I've just been offered a £3 million portfolio from a fund that messed it up. And so now let's turn it into a positive. And that is that as prices come down, home affordability for you buying a new house gets better, and you can finally get in and invest in property. You can become an investor. You can buy buy-to-let, you know, properties that were £75,000 in '08, peaked at £225,000 here in Peterborough, and now have dropped under £200,000. They're going down more towards £175,000. They might move down to £150,000, I don't know, but that's much more affordable. And while rates are still— because 5% is not really high. You probably think it's really high because you've had 12 years at nearly 0%, but you know, if you're going to get a mortgage at 5%, pay a bit of margin to the bank, that's not too bad. So my question to you is, what are you going to do about this? Are you going to go and see some properties? Are you going to drive around your local area and see what's up for sale and knock on the door? Are you going to go into an estate agent and say, look, I'd like to buy some investments? And are you going to maybe stick in a couple of cheeky offers? I was actually talking to my business partner about this yesterday because this is what we're doing. We've got a £3 million portfolio, it's there, needs to be cash, it's going to auction. But what we want to do, we think it's cheap-ish, but we think the market could come down. So what we're going to do is think, where do we think the market will go to? And then we're going to forward price our offer to be where we think the market will be, and that will be the offer that we'll put in. Now of course, if you don't have any money, what you need to do is learn how to raise JV finance. Raise private finance, family finance, and do options, installments, and negotiate directly with the seller. And if you'd like to learn how to do all this and to get into property and build a portfolio and learn how to buy properties cheap and know the property market inside out— because after all, I've been doing it for 17 years, I have 340 units, 1,350 tenants— if you'd like to learn all of this, I recommend you join Rob.team. And Rob.team is my digital financial freedom platform where you can learn, earn, and invest and build multiple streams of recurring income. You can make, manage, and multiply money and start and scale your business, and you can invest in property and other assets to build financial freedom and recurring income and wealth. And it's easy to join. You can cancel anytime. There's no ongoing contract. All you have to do right now is go to rob.team. So literally just type in r-o-b dot TEAM. I can see a lot of people going, you see the numbers move. So just go now, be quick, and type in rob.team. Go and join, it's less than the cost of a cup of coffee. You can cancel anytime, there's no ongoing contract, um, and there's hundreds of hours of courses, resources, and masterclasses. And coming very soon, I've got a brand new special masterclass on how to invest in property, how to leverage the property crash, how to raise money to get into property, little or none of your own money. So make sure you go and join rob.team right now. As you know, I used to do lots of lives and go viral. Something happened on Facebook. I'm back here doing lives again. They might cancel me, so be quick because, you know, I'm speaking some truths which unfortunately the banks and the central governments probably don't like me for this. So make sure you join rob.team quick before I get cancelled. Um, so what do you think? Do you think that the house price crash is a scam? Because It's almost been artificially manufactured. Do you think it could have been avoided? And where do you think prices will go? I could sort of see any— I could see 40%, 45%, which by the way, 40% would represent probably the biggest crash, I don't know, almost in history maybe. Remember as well, property is very local. So you might think, oh, it's not happening in my area because it's not happened yet. Or maybe you don't know the area well enough and you need to get in the local estate agents and go and drive around. I'm telling you, you're going to find some bargains. If you get in the local estate agents and you go and drive around. Also, if you think this or my or any of my content is useful, please do hit the share button. I feel sorry for homeowners. I think they're going to lose their shirt. I think it's the government's and the central bank's fault. I think there's a huge lack of education on money and finance and investing, and that is my mission. My mission is to help you get better financial education and knowledge, and I want to teach you what you should know that the banks don't want you to know. And one of those is that the house price crash is a scam, it's been manufactured, and that modern monetary theory and policy is outdated, it doesn't work, the fiat currency system is a Ponzi scheme, it's unsustainable, and things need to change. I've just finished my book Money Matrix, that'll be coming out next year. I'm writing another book on money and I'm going to expose the system and teach you how to build personal wealth. Now the best way you can do it on an ongoing basis with me for less than the cost of a cup of coffee a day— no, no, less than the cost of a cup of coffee a month, a bloody large one, but still 22 pence a day. Cancel anytime. You can run it through your business, so that halves it. Um, you can claim the tax back. It's to join rob.team. And I've got a special masterclass coming up with a special guest expert property investor, um, in a few days' time. You don't want to miss this. You can jump on it live. Just join rob.team. Type in r-o-b-dot T-E-A-M. Rochelle has said it's all premeditated. Um, Rod said it doesn't seem to have dropped in Paul just yet. Naz believes it is a scam. Lee thinks 25%. Gordon thinks 17%. It's already dropped that in some areas, so I think it's probably going to be more. This is the thing as well, you used to be able to, um, buy and own a house on one person's salary. Now you need two. The value of money has gone down. Do you know money is worth 1/7 of what it was in 1971? So affordability is going down and down and down. Do you know the relative value of your money is the lowest since World War II? You probably don't know a lot of this stuff. So thanks for tuning in. I wonder if you wouldn't mind sharing this if you think it's useful, and I'll see you in Rob.team. Oh, and remember, if you don't risk anything, you risk everything.
