The word ‘recession’ strikes fear into the hearts of many people. Economic stagnation, job uncertainty, falling house prices and a media obsessed with doom and gloom all add to the general feeling that all is not well. But for property investors this is a time of plenty, and the serious players are investing more heavily now than they have for many years.
Rather than running and hiding in the corner hoping that everything will work itself out, these people seize the opportunity brought about by a downturn. They understand that recession is a normal, and in many respects healthy aspect of the economic cycle. As house prices fall, sellers have to consider accepting greatly reduced offers if they want to sell. Developers heavily reduce prices to maintain turnover, and auctions start to fill with bargain properties, often selling for a fraction of their true value.
Interestingly, this is as true for many overseas property investment markets as it is for UK property investment. Increasing globalisation over previous years has resulted in a global economic downturn the likes of which we have never seen before.
All of this means opportunity for the property investor. In fact, right now offers a level of opportunity that we have not seen since the early days of the 1990’s, and probably won’t see again for another 10 to 15 years or so.
So is now a good time to buy? You bet it is!!!
