Market conditions suit some investors

Posted: 08 May 2008 10:49:39 GMT


            Property News - Market conditions suit some investors

The collapse of investment company Inside Track should not be of concern to buy-to-let property investors who look to the long-term.

The collapse of investment company Inside Track should not be of concern to buy-to-let property investors who look to the long-term.

That is according to Property Hawk, which said that long-term investors are more able to ride out the difficult times.

Inside Track collapsed as a result of the global credit crunch and the resulting impact on the housing market.

The firm dealt with short-term investments and was concerned with making quick returns.

However, Chris Horne, editor of Property Hawk, said that long-term investors should not suffer the same fate and may actually benefit in the current market.

"[Inside Track] probably represents the pinnacle of short-term property speculation. But the long-term investors are probably now turning their attention to the possibility of picking up bargains at auction," he revealed.

"There are a lot of new apartments that were sold, ironically, by Inside Track, and now they're appearing at what really is a discount to the market value – as opposed to an applied discount to the developer's price.

"You can find properties being sold at a 30 or 40 per cent reduction from what they were originally sold at," continued Mr Horne.

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