Freshly squeezed property investment

photo credit: Steven Fernandez

The property market grim reaper is really out and about this week. A slump in the new homes and residential market has put 1,100 Persimmon workers out of their jobs, the ‘r’ word is being freely bounced about, rather than quietly muttered, and now international property group, Savilles, has joined the doom and gloom brigade.

Their latest announcement, to keep the market positive and buoyant, is that the squeeze (I’m not saying ‘crunch’…I refuse to) is spreading. Not only to the mansion market in the Home Counties (oh no, what will we all do??), which was previously holding up well, but also across Europe and Asia. They’re so sure of a continued downturn that they’ve cut their profit forecasts for this year.

Some figures not so sexy

Jeremy Helsby, chief executive of Savilles, told the Financial Times there was no sign of an improvement in confidence, which is necessary for a recovery. And they’re leading the way with their ‘confident’ outlook?? I suppose the figures and share price say it all for them. “Not good.”

There are a few lights at the end of the tunnel though. If you have a house worth over £5 million you’re laughing, because the market is apparently irrelevant if you have that sort of dosh anyway.

Go east with your investment money

Another approach would be to look towards stronger countries to invest your money in, such as the UAE and, on Savilles’ recommendation, Germany and China.

Despite the ever-present worry in the UK market, I’ve said it before and I’ll say it again, if you have the money to invest in property then you’re in a great position to snap up a bargain in this country. And perhaps even contribute to that increase in confidence that everyone is crying out for??

Technorati Tags: real estate, real estate investing, property, property investment