Archive for May, 2010

How Can Some Property Investors Profit From The Nca And Is It Morally Right To Do So??

The country is starting to face the repercussions of the new credit act. Lending is getting tighter and everyone’s affordability has been dealt a double blow with increased interest Rates. Many people are not so happy about the new set of circumstances they find themselves in. For many property investors months of long strategic planning seems to have been for nothing. As most investors go back to the drawing Board we ask Can one profit from such events?

The answer will be yes or no depending on your perspective. If you are a property investor the answer should be yes. We’ll explain why in this article. If you are a speculator you would be more likely to disagree.

So for the property investor we say the answer is a definite yes. Yes if you can capitalize of the fact that in lean times many people will run to ground. Yes if you are able to remain completely emotionally detached and yes if you see no moral wrong in taking advantage of the misfortune of others.

All industries experience good and bad times. Markets go up and down all the time. Most people are comfortable in an up market doing a roaring trade with a fearless appetite feeding off market confidence. Yet not many are comfortable when the market turns down and the drip of market confidence is turned off.

For many South African property investors this is the first time they are having to face a downward market. Many feel lost and are not sure what to do next. The natural reaction to this situation is to freeze stop buying hibernate bunker down and batten down the hatches until the clouds disperse and the sun comes out again.

Sounds logical conservative and safe doesn’t it?

Such investors could take a word of advice from investors that have already been through this before. Older more experienced investors know to well that if you can profit in the up market you can profit in the down market. Younger investors just need to learn how for the reality is that investors capable of trading in a down market can profit and profit they do.

So the NCA is one of the main topics of the day and seen to be a major contributor to a downward turn in market conditions. Lets see how property investors can profit from the NCA and even be bold enough to look at the morality of profiting from such unpleasant events.

In recent years buytolet investors have purchased large amounts of properties on 100 and 110 bonds with significant shortfalls. This leaves many very tight budgets and little or no room for further purchasing. They are what we call Over Exposed. When taking into consideration that most also have a primary residence Bond to service car Finance credit cards miscellaneous loans and general living expenses. Most would find it difficult to refinance simply to improve their current homes never mind getting additional bonds for property investments. Especially in light of the NCA.

This leaves a large amount of people unable to buy and faced with many month of treading water as hard as possible to stay afloat. Many will not have the stamina to stay the course of a market downturn. As pressure builds any turn in market events that negatively impacts their situation could result in some very interesting opportunities for those investors with reserves.

Such investors do exist and have been holding capital in reserve for just such a day. Many have not made any significant purchases in the last year buying only significant bargains or small caps with good cashflow but little or no Equity growth. If you ask most how they felt during the boom they would say it was extremely frustrating to sit on their cash while everyone was buying buying buying. Yet sit they did and focused on other things all the while keeping one eye on the the market. What they knew was that when the market turns their gearing will be low and cashflow high at a time when bad fortune will abound.

As the market turns these investors are starting to venture out more aggressively that they have in the up market. They start investigating more deals as the market cools down. They watch as estate agents frantically market properties and one bond application after the next falls through. They track the problems and when time is right the swoop down for easy pickings.

They know that in these circumstances they can make offers that suite their investment strategies. They ooze with confidence in the knowledge that they are in the bargaining position of strength for in almost every case they are the only substantial Person interested at the bargaining table.

However being the only buyer at the bargaining table with a desperate seller and taking advantage of their unfortunate circumstances is viewed by many as immoral. Such investors are then often likened to vultures circling and coming down to feed when their prey is either dead or too weak to struggle.

Is it wrong to act in this way? Let’s see.

Assume that such investors did not exist that the market cooled down and a seller desperately needs to sell but there is absolutely no one to buy for any price. Viewed in this light could the acts of such investors look less like the acts of a vulture and more like the acts of a clever business person?

How will this situation benefit the market? It most likely will not. More insolvencies and sequestrations will be inevitable. So lets ask the question again. Is it moral to save someone from their current situation when there is no one else that can do that? Or is it better to let them go to their unpleasant fate on moral grounds?

If markets did not have opportunists that can arrive at the right time to save what is left of the day what would happen to all those that need a buyer at any price?

Having said this we feel it is safe to say that investors trading in down markets can be viewed as the sellers saving angel. Not because they save the seller but because they save the money to spend it when the seller needs it most. When taking a closer look at such circumstances an ironic balance starts to emerge. The seller spent while the investor saved to save the seller from their spending at the right point in time. It is a winwin situation despite the fact that one person is trapped in an unpleasant situation.

In the end investors that invest in down markets can definitely profit from the NCA and in the process save some spenders that had no foresight. Furthermore it can be argued that it is not only moral to do so but a duty to help out those that are trapped simply because they can and therefore should make a winwin situation for all parties involved.

And so as the NCA continues to deplete the market of buyers take heart in the fact that it is opening a treasure chect of opportunities. Just be patient circle and swoop at the right time.

Happy pickings.

About the writer:  Sean is a property investor and estate agent in Johannesburg South Africa. He is the founder of Property Investor Network a community knowledge portal. He also owns several other property related businesses and associated websites including REPOSSESSIONSTOPPER a service frontend for people wanting to avoid repossession.

Houston Galleria Apartments Are Booming Metropolis Of The South

Houston Texas is on the Gulf Coastal Plain of Texas sprawls the South’s largest city Houston. A 19thcentury frontier town it has sprouted into one of the world’s leading seaports and oilrefining centers. As the headquarters for the United States maninspace program the city has been dubbed “Space Center USA.”
Houston is the major industrial and commercial hub of Texas. It is one of the fastest growing large cities in the nation. Its population increased from 1232802 in 1970 to 1594086 in 1980 a gain of 29.3 percent to 2208180 in 2007. The city proper ranked fourth in the nation in 2000; the metropolitan area with 3.3 million inhabitants ranked ninth.
Houston’s central business district stretches back from the south bank of Buffalo Bayou. Modern highrise buildings house the offices of large industrial and banking firms. Sixteen miles to the east is Galveston Bay an inlet of the Gulf of Mexico. To the northeast flows the Trinity River; to the southwest the Brazos River.
Houston covers more than 446 square miles one of the largest areas of any city in the nation. It is laced by sluggish bayous or creeks whose marshy shores are still bordered in places by Spanish moss and groves of magnolia cypress sweet gum cedar pine and oak. Most of the city is built on higher ground originally covered by thick forests and lush prairie grass.
The summer climate is hot and humid; winters are mild. Normal daily temperatures in August the warmest month range between 93F and 75F; in January the coldest month they range between 62F and 46F. Summer temperatures sometimes reach 100F. Occasional cold blasts from the north bring freezing temperatures in winter but snow is rare. The mean annual precipitation is about 45 inches.

About the writer:  Houston Galleria Apartments provides information on Galleria Apartments Houston Galleria Real Estate. His company will help you to deal on Houston Galleria Apartments

Houses Of Allen Details And Facts

The rate of growth in Allen has increased drastically and buyers and sellers should consult a well versed professional to help them sell their home at the highest possible sales price. The team of real estate professionals at VIP Realty Platinum is working to provide all the necessary details of the list of comparables sales commonly known as “Comps” to helps buyers and sellers determine the value of their Allen Home.

The services offered by the VIP Realty Platinum Real Estate Team have been admired by all of their clients and they have a great reputation. AllenHouses havebecome more and more popular and the demands on the land are increasing. Allen population increases steadily due to its well planned development and job growth in the DFW area. At present there are number of homes available for buying and selling in Allen. When buying a home in Allen it is better to look for things that suit your lifestyle best. A home inspection is always a good idea before buying home. If you are selling set the best market price for your house so it will sell quickly.

The price range of Allen Real Estate ranges from 150000 to 3500000 which proves its popularity and the demand of land. The Team is working together to provide professional real estate services for the residents of Allen. The team is working hard to provide all available relevant real estate information to their clients that make them feel comfortable when navigating in the real estate world.

VIP Realty Platinum is known a stateoftheart real estate firm leading the growing trend in the 21st century towards smaller and more personalized companies. Despite of high cost of living in Allen buying and selling real estates in this area has always been popular and there is always someone to love the house you are selling and they are buying.

About the writer:  Harry Ridge the Broker of VIP Realty Platinum has more than 23 years in the industry and has the knowledge and experience to lead his Real Estate Team in any market environment. Serving Allen and the DFW areas.