Profit from the property slump?

An interesting interview on property prices (granted this is on the Asian market), on one hand there is Chris Dillon who is well versed property expert, and on the other you have Bernie Lo (personal admission: he is one of my favourite presenters on Bloomberg!) who is making equally valid counterpoints.

The interesting facet is that the argument for or against property is happening again, up to 2006/7 the argument was purely ‘for’ and from 2007 to now it has been totally ‘against’, the question is whether or not we are reaching capitulation or not, the so called ‘bottom‘ that some commentators are talking about is hard to spot, its like trying to read a road when driving by looking only at your rearview mirror. Having said that, a bottom call currently, is in our opinion, premature even on a global basis.

In Ireland we are seeing the over supply on the new build side become compounded by the existing stock levels for sale, job security issues and hardening criteria in mortgages are also feeding into the fear of taking out a mortgage. With all of those negatives considered, it is vital to remember that markets turn both up and down and the advice to make ruthless bids and deep research is advisable if you want to find profit in the current market. Property has always been a core asset to those who are wealthy and that won’t change, having said that, with ill advised decisions you can still make a small fortune this year in property – but you’ll have to start out with a big fortune.

One Comment

  1. We’re a long way off calling “bottom”, for sure. At least let’s wait until the average asking prices, that we re-calculate every week, stop falling. When we get maybe two months of steady prices we could be on to calling something approximating a bottom. However, because we only have asking prices to go on, that price firming may only reflect agents getting more interest in the properties on their books, and more viewings, and even offers. If sales don’t follow suit, we could be in for another period of price cuts after that.

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