November 27, 2008

House Sales Uk – Are The Special Circumstances Of The Current Crisis Actually Keeping Values Up?

House Sales UK may seem to be in a bit of a slump, but there’s a hidden and potentially worrying trend that may be holding prices at levels which are higher than they normally would be in the present financial chaos. Paradoxically this state of affairs is all down to the way the present financial chaos is hurting the big banks, their reputations and therefore their ability to raise funds and balance their books.

At the moment there’s an ever growing number of individuals and Companies that buy Houses who are buying Properties just to have a safe home for their cash. These individuals and companies are cash rich. In normal times, we’d say they were fortunate to be cash rich. However, just now, being cash rich has all of a sudden become a very disquieting situation to be in.

Individuals in the UK only have the first £50,000 of their funds in a bank assured by the government. Companies have no protection at all for their money at the bank. This makes them extremely keen to put their savings into something much more secure, because banks like any company can fail and disappear overnight, taking all their shareholders’ and customers’ cash with them.

Properties, conversely, can’t just disappear, and it’s completely inconceivable that their values can drop to absolute zero unless the whole western monetary system collapses. It’s true that no-one knows how far House Sales UK are away from the bottom price wise, what is absolutely sure is that the present financial chaos has just about completely halted all Home building. This means that it’s highly likely that there’ll be a real & prolonged shortage of Properties to purchase once the economy picks up and confidence starts to return.

That’s why there are many private individuals and Companies that buy Houses all trying keenly to get their “We buy Houses” message across to us all.

Their plan is to keep only just enough ready money on hand to hold their liquidity at a sensible level, and to spread this amongst several different Banks, so that if one collapses, they’ll at least only lose part of their resources. After that, it’s fairly straightforward, they just need to sit on the Properties they’ve bought until House Sales UK prices hit the bottom, then rebound to beyond today’s price levels.

So, if you would like to sell a Home quickly, and you’re prepared to allow a discount on the price in exchange for a rapid sale without the need for estate agents & other fees, just call one of these companies or individuals that are advertising all over the various media, and challenge them to live up to their “We buy Houses fast” claim.

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