Property Investment What We Can And Can´t Handle

Property - there´s extra to it than give and desire

Property is unique in many respects, and the reality people gossip about it more than any other investment is just one of them. It is also different in that prices are set by local transactions - one absurd bid on a house can push up the value of each other property on a single street.

Culture also offers a leading effect (Germans like renting, Americans like owning), as do property taxes (quite high in Spain, relatively low in Britain). The lax property laws and politics of Ireland´s outgoing government made a hefty factor to the recent boom (and was a big factor the incumbent Fianna Fail party were hammered in current elections).

Less obvious aspects like demography (a steadily increasing population has often underpinned US housing investment from institutional buyers) and geography (limited space in Hong Kong, lots of space in Phoenix) can also have dramatic influences over time.

You can force, but you can´t direct it (Bono)

Attempts to control the property market can frequently have unintended side effects. Spanish first time buyers have all the time wanted to deal with incredibly strict mortgage lending laws, and yet a similar banks that were essential to ask for 25% deposits were given free rein to finance rampant speculation on behalf of developers. On the other hand, German banks who couldn´t give to local developers invested in subprime mortgage bonds in America instead. Go figure.

By: Torcana

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Torcana Ltd is a property investment consultancy dealing with investments in foreclosed property, distressed property, and discounted property in USA, Spain, UK, and Panama. For more information please visit: - www.torcana.com