Quote:
Originally Posted by soluman46
Its great to hear some positive and informed banter on the subject of property investments and I have to say I pretty much agree with everything Peter says. Even with the pinch of salt, I think the analysis is pretty sound. The crunch won't last forever! And riding out the storm should reap great dividends. My main worry is about developers' finances. After Iceland put an embargo around their cash, councils and loads of other borrowers in the uk and elsewhere are up the creak without a paddle and in a barbed wire canoe so to speak. If the developers' cash flow gets bu__ered up then part-built and paid for property is in jeopardy. Many of the developers are European (I think) and hence their financial arrangements may well be tied up in the current mess.
Anyway, I still feel I have invested in one of the safest places, even if the developer I am dealing with is a bit flaky and not 100% trustworthy (no names mentioned here!), and its good to hear something positive in the mounting gloom. Thanks Peter and Nick for your ever welcome contributions to the forum.
cheers
Andy
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The big difference here is that Developers in the main are building with their own money. They are not generally borrowing the cash, although land purchase can be spread over several years.
They are not therefore subject to pain inflicted by huge hikes in interest rates which could quickly put a project into negative cashflow.