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