Loans and Finance

Loans and Finance


News and information about loans, money, debt, finance and business issues.
Powered by

Thursday, December 09, 2010

Buy Like Hell?

Mike Slade CEO of Helical Bar is advising people to buy investment property "like hell", as he claims never to have seen such a gap between yields and borrowing costs.

All very well, maybe, if you are a professional property company with many years experience. However, the rest of the country may well be advised not to follow that advice:

1 Borrowing the money from the banks, at a decent rate of interest, is not that easy.

2 Interest rates in the next year will most likely rise.

3 There are buying opportunities (eg distressed sales etc). However, these are most likely to be snapped up by companies such as Helical Bar.

4 Helical Bar doubtless has a greater cash cushion than most, to enable it to ride out a crisis in the event that they are wrong.

No comments:

Post a Comment