Help investors cash in on the bear market
While the rest of the industry is bemoaning the recession, bridging is the ideal tool to help investors turn a profit, says Jonathan Samuels, CEO of Dragonfly Property Finance
foundations. Wherever you look, the numbers are red. The eurozone, especially, is in a state
T
of chaos. Greece is a goner – it’s only a matter of time – France has lost its AAA credit rating, Italian yields have set up shop around 7%, while even the mighty German economy has begun to creak. To make matters worse, the magni-
tude of the econo - mic crisis has been matched by the in - ep titude of politi- cians and policy - makers attempting to manage it. At home, our eco -
nomy is in retreat and unemployment is rising. The prop- erty market, under- standably, is falling and could go down some way yet.
And with the Bank of England base
rate at 0.5%, there’s no more capacity for monetary stimulus so all we can do is print money. This isn’t ideal, as nobody knows where quantitative easing will take us. It’s like we’re glugging from the last medicine bottle in the cabinet – side effects unknown.
All in all, things have never been The
hese are unprecedented times. In the past four years, the global economy has been shaken to its
worse. And yet it’s precisely because of this that they have never been better – well, for property investors anyway.
I dream about recession I know, I’m sounding a bit like Alessio Rastani – the trader interviewed on the BBC in autumn last year. Rastani made Patrick Bateman from the film American Psycho sound like Mother Theresa, say- ing “I dream about recession”. But why did Rastani say this? It’s sim- ple – because volatil- ity and uncertainty, ie bear markets, are the best environ- ment for making money. The same applies to the property mar- ket. Right now it is volatile, uncertain and bearish. Prices in most areas are under pressure and because of this it represents an unri-
valled opportunity to make money — and profit.
And one way to profit from the volatil-
ity, to monetise the bear market, is bridg- ing. It’s the investor’s tool of choice.
The right tool So why is bridging the investor’s tool of choice? First, because the bridging
guide to Bridging Finance 2012 33
GUIDE TO BRIDGING FINANCE
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