I was so busy updating my budgets yesterday I didn't realise the impact of the momentous news on Wall Street / Washington until I saw Newsnight last night.
Does it make a difference?
I think it must. This can only add further downward pressure on property prices meaning that any hope of this project making a profit based on stable prices has gone so it can only work by adding sufficient value.
I think it will also mean that the correct strategy is more likely to be to refurbish the house and re-sell it. If property prices continue to fall what is the point of buying an asset you think will depreciate further over the short term? Surely you are better of waiting a little and trying to buy something else for investment closer to the bottom.
I need to run a few more sensitivities through my budgets to see what happens if there is further fall in prices between now and project completion. Completion in this case is house sold or rented out.
I am begining to think like a bank in these troubled times. Hang on to your cash!
Does it make a difference?
I think it must. This can only add further downward pressure on property prices meaning that any hope of this project making a profit based on stable prices has gone so it can only work by adding sufficient value.
I think it will also mean that the correct strategy is more likely to be to refurbish the house and re-sell it. If property prices continue to fall what is the point of buying an asset you think will depreciate further over the short term? Surely you are better of waiting a little and trying to buy something else for investment closer to the bottom.
I need to run a few more sensitivities through my budgets to see what happens if there is further fall in prices between now and project completion. Completion in this case is house sold or rented out.
I am begining to think like a bank in these troubled times. Hang on to your cash!
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