The Awful Truth About Property Investing During the Credit Crunch

in Property

Property investment when done properly can be really rewarding. You simply find the property that offers the best return for your money. This can be a property in a developing area a property, from a foreclosure, which is cheap, or a property that needs renovation and the price is reflective of this.

I know that you think property investment in the current climate is madness! Yes it is if you expect an immediate return on your investment, but that isn't what property investment is really about.

The awful truth about property investing today and indeed in the past is that it is a long-term investment. Short term mostly won't work today. The recent quick gains have been solely the result of over lending in a market short of property versus a huge demand. You could be sure of a quick turnaround buying and selling and a good quick profit.

The truth is that long term investment in property will always work. Today the quick turnaround is mostly over, there will always be the exception, but long-term investment at this point couldn't be better. Prices are as low as they are likely to get. They might drop a little for seasonal changes but probably not falling by massive amounts as recently.

So if you believe the truth about property investing which is a long term investment then today is the time to buy and develop a property portfolio or simply buy to profit.

If you are looking at a portfolio then buying properties that need some updating will virtually guarantee you a return, and if you're letting then the same applies. All you need is some background knowledge to be able to raise the funds. No kidding, it is much harder than it was but if you can seem professional and act professionally those funds will come.

The big question is; why you should invest in property during a credit crunch?

The answer is obvious, unlike stocks and shares property is always required and is a "solid" investment. Consistently over the years history shows that property is a steady long term location for your money. The world population grows and grows so those people will need housing. More people equals more demand, more demand means more building, but this is not easily done because of the investment inland and materials as well as skilled labor.

What tends to happen is that when the money supply eases, demand rises and outstrips supply, in turn increasing prices. Because of the raw wounds, still being licked, of many over ambitious investors, we might not experience such halcyon heights as a couple of years ago, but upwards is the trend.

The well-informed investor will be looking for a long term gain and will not be disappointed. If you follow the maxim that you want to look for run down property in a good area you will help maximize your return.

So many people today don't know the truth about property investing and are scared of investing during the credit crunch. This is your golden chance, to get in on the act. You will need strong willpower and common sense, you might be lucky and get a quick break and good luck but that won't be normal, at least for the time being. Plan for the future and all will be clear and bright.

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Bob Harris has 1 articles online

For more advice about property investment during the credit crunch and at any time get 5 chapters free of a valuable (but not expensive) book, by a seasoned property investor, how to reinvest, re-mortgage all you need to know, 5 chapters free right here right now.

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The Awful Truth About Property Investing During the Credit Crunch

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This article was published on 2010/03/28