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