Cheap property 'not always the answer'

Posted: 07 Apr 2009 13:08:08 GMT

Many homeowners may be tempted to investigate purchasing a home now that prices have dropped so significantly but one analyst has claimed that there are still arguments to consider.

Lloyd Lee, director at Marathon Asset Management, suggested yesterday (April 6th) at IMN's European Distressed Real Estate Symposium that buying up property now could mean profits take a while to realise.

This is because house prices may continue down for some months, and the recovery back to today's prices may take even longer.

"It is foolhardy to go into deals where there is no income because we don't know how long it will be before the market comes back," he said.

However, those looking to move into their dream home - or perhaps even their first home - could find that if they are planning for the long-term then a short-term dip in the value of a property after it is purchased can be easily recovered.

Buying a property online could save extra cash as there is a chance to avoid using estate agents.



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