1. As its name implies we are in times of restricted credit where it will be harder to raise finance on investments and in particular those considered to be more speculative by the lenders. For example a recognised strategy for leveraging UK buy-to let-investments; was to purchase at below market value using bridging finance and then remortgage on the same day for a high percentage of the greater revalue price. This could actually produce no deposit purchases and sometimes even cash back from the property. Finding lenders who are willing to finance such opportunities in the current climate has become more difficult. 

If you have an excellent credit rating, good income and assets, dependant on your attitude and motivation to invest it is definitely a buyers market for the investor who knows what he or she is doing. There are pitfalls to be wary of and it is a brave investor only who goes alone without experienced help and advice. 

Most of us probably fall between the above two examples and are affected by the crunch to varying degrees. This brings us to attitude to risk and motivation. Before you embark on any investment project you need to have a good understanding of your own attitude to risk and set your criteria accordingly. 

Most importantly what are your prime reasons for the investment?  If it is to buy a long term holiday home for you and your family then with the right choice this is the perfect time to buy.  If you want to make a profit in the short term by buying off plan and selling before completion then it is a little more difficult to find the right opportunity at the moment.  These deals carry more risk than pre credit crunch times so a little more care in selection is needed. 

Taking the middle road again I have found that our current pure investors are favouring developer funding opportunities with built in additional security and fixed entry and exit strategies. Timescales on these are not as short as they used to be but 24 months is easily achievable. 

2. “The prevailing economic factors affecting the country you choose to invest in.” 

There are lots of economic reports, facts, figures and forecasts around for the many of the countries we may choose to invest in.  Many of them are affected by the credit crunch to some degree or other. Interpretations vary considerably, and predictions are really only educated “guesstimates” for the future!!  Globally there has been a slow down and lack of confidence with investors due to the credit crunch which in itself has had an economic consequence and has affected the property markets in some countries.  Some countries are more resilient to the “crunch affect” than others and will be affected by their own micro economies in relation to the world and their own internal property markets.

Then there is the high price of oil.  It seems to have a mind of its own and affects everybody and everything (The environment most critically). 

As can be seen from my comments above economic factors are the area of most difficulty and need some assessment and sound judgement before you determine the right choice for you!

3. Compared to the above the specifics of the opportunity are a bit more precise. Those of you that are more legally minded will be able to scrutinise contracts and assess the different aspects offered by different opportunities. Weighing up the risks and realistically predicting actual profits may be a bit more demanding and require experience help and advice. I have often found that a very slight change in contracts at this stage can prevent numerous headaches and/or prove much more profitable later on.

In conclusion I would say that yes there are issues out there but as with all historical down markets there are also some major opportunities. In essence it’s a buyers market with lots of sellers chasing fewer investors. Prime real estate still sells for prime prices and continues to rise. But it must stand out from the crowd and relate to supply and demand. Above all the prime principle when investing in property is …

You make your money when you buy

It follows from that if you are scared of buying you won’t make any money!

Get the experts on your side and contact us now for a consultation.

http://www.sunshinepropertyinvestments.co.uk/htm/contactus.php

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