| The property market after many years of | | | | current value |
| stellar growth is now set for a period of | | | | |
| decline and this is a worry to many | | | | There are companies who will lock in the |
| homeowners. | | | | value of your current property value for a |
| | | | set number of years, for a small premium to |
| So what can you do to protect wealth that is | | | | give peace of mind. |
| held in property? Let's look at what can be | | | | |
| done and also why property prices are heading | | | | In a raging bull market these companies don't |
| south. | | | | do much business, but in a falling market |
| | | | business is booming and it is perhaps |
| The background | | | | something that any homeowner should consider. |
| | | | |
| Despite what many estate agents may tell you, | | | | 2. Improvements |
| the property boom has hit the buffers and the | | | | |
| reason is simple: | | | | There are many new improvements you can make |
| | | | to houses that will increase their value way |
| Liquidity in the economy is being squeezed by | | | | beyond the cost of the improvements |
| higher interest rates. This makes exiting and | | | | |
| new mortgages more expensive. | | | | 3. Investment portfolio's & Second homes |
| | | | |
| Even if rates were not to rise there are a | | | | Can lock in the value of their portfolios (by |
| huge percentage of mortgages that featured | | | | doing point 1) but if capital growth is |
| low starter rates which are now increasing | | | | required the solution is simple: |
| and this is the equivalent of a rate rise to | | | | |
| a huge amount of people. | | | | The world is a big place! |
| | | | |
| So we have a market with huge amounts of | | | | And there are some great opportunities |
| vacant property, new buyers unable to buy and | | | | overseas with Central America being a great |
| money tight for those with existing | | | | place to seek bigger gains and Costa Rica and |
| mortgages. | | | | Panama offer property at up to 70% less than |
| | | | in the US and many investors are achieving |
| After such bog rises the market is falling | | | | growth rates of 30% or more per annum. |
| and things will get a lot worse before they | | | | |
| get better. | | | | A warning |
| | | | |
| Protecting the value of your property | | | | The above are just three options you use to |
| | | | protect the value of your property as prices |
| If you are a homeowner or invest in property | | | | fall and beware the economic conditions show |
| there are a number of things you can do to | | | | they have a lot further to fall and things |
| protect yourself | | | | look like they will get a lot worse before |
| | | | they get better. |
| 1. Lock in the value of your property at its | | | | |