Tuesday, April 3, 2007
Catch a falling knife
BTL investors will cause a stampede as they exit the market if average house prices begin to fall and interest rates increase. However, other than cash rich investors wanting to bag bargains from distressed sellers, selling quickly may not be that simple or straightforward. Having rode the wave of increasing house prices BTL investors may suddenly find just how detatched from reality prices have become, prices that they have indirectly caused to swell by their activity, activity that many may begin to regret if they discover they're holding investments that begin to turn sour rather than reaping short term rewards.