"Savvy investors with £10k+ cash and a long term view are cleaning up in the 2008 property buyer's market" reports Nick Hopkinson, Director of specialist investment firm, Fruitful Property.

 

Residential property sales volumes have collapsed in the last few months and the house building industry is in major trouble at the moment (see the FTSE share value for Barratt Homes as an example). "Is anyone winning in the current market conditions?" asks Fruitful's Hopkinson.

 

The "credit crunch" has had a dramatic impact on the mortgage market with far fewer loans available, at much higher cost and with much tighter loan conditions than have been available for the last few years. The speed and extent of the banking industry reversal from easy lending to strict loan criteria and large security deposits is unprecedented. The crunch is mainly driven by bad banking debts in USA, the subsequent "loss of nerve" amongst bankers and reflects the global nature of Debt Capital markets centred in London.

 

Bank mortgage lending criteria will become easier once the banks have got over their "crisis" in the next few months; how else will they earn the bonuses they crave in future without lending money again? Pent up demand to buy and own UK property remains the same as ever; the issue in the short term is one of mortgage availability and consumer confidence about affordability. "Do you know anyone who's long term ambition is to rent their home with all the uncertainty and lack of control that brings?" asks Hopkinson. The chronic shortage of residential property is only getting worse with the current cancelling of all major developments by the big builders. The population, particularly in London and SE England continues to boom, driving up future demand. Once lending "normalises" again property sales volumes, prices and confidence will return just as quickly as they disappeared.

 

Unfortunately, some home owners are (as has always been the case) in financial dire straights or simply need to sell their property fast for reasons of a job move or probate sale. These sellers are caught in the current credit crunch and are struggling to sell at market prices; they are having to sell Below Market Value (BMV). "Everyone understands you will get a better deal (and make more money longer term) if you buy property in the current falling market, provided you buy at the right price and budget correctly for the long term." Say's Hopkinson from Fruitful. While some people are struggling with repossessions, personal debt and higher mortgage payments, it's currently a property buyer's market for the financially savvy.

 

To find out about Fruitful's latest BMV properties call our offices for a no obligation chat on 020 7031 8282 (weekdays 9am to 6pm) or send an email to info@fruitfulproperty.com with your name and daytime phone number. "Most people will see 2008 as a missed buying opportunity when they look back!" say's Hopkinson "why not find out more?"