Sunday, January 20, 2008
George Bernard Shaw said property is to the middle classes what gambling is to the poor. Either can lead to addiction. One sign that any house price downturn will get uglier than we hoped is when property funds start to get into trouble. When the market turns, it is impossible to get your money out. The huge unknown is how buy-to-let landlords will behave as prices tumble. During previous recessions, second-property owners dumped at the first sign of trouble.