I was hoping for a quiet few weeks in the run-up to Christmas this year, but alas, just like previous years, I don’t see any let-up until the much anticipated company Christmas lunch/party on the 20th December.
This week I am off to Berlin for my first visit since 1988-1990 when I had the privilege of living there and being present the night the Wall was breached in 1989.
Then a few days of meetings in London including a visit to the Overseas Property Professional exhibition and then to Cyprus for 5 days to sign a few contracts on some land we have purchased.
Our Group of companies will be closed from midday 20 December to 3 January 2007 inclusive, although I will not be back in the office until the 8th. Please address any queries you may have before the 20th.
UK Property Market Crash
David Miles, chief UK economist of Morgan Stanley caught the headlines last week with yet another prediction of a UK property market crash. I have lost count of the number of articles, headlines and new economic models which have been presented over the years predicting Armageddon for UK property owners and investors.
His basic thesis is that speculation has driven prices in the UK and when the anticipation of sharply rising prices ceases, prices will fall significantly.
Unfortunately for Mr Miles, economic history is against him. As far as I am aware there hasn’t been a sharp fall in UK property prices as a result of speculative activity in our history.
Property prices are driven by economic factors such as low interest rates, low inflation, high employment, high demand due to demographics and liberal financial services and until we see any major changes to these factors, we will not see a sharp reversal.
Fundamentals of Property Investment Course
We have announced the first two dates for 2007:
London – 27th January 2007
Manchester – 17th February 2007
There is a special offer on the website which you can see by clicking www.bewarethesharks.com
We have already taken bookings for these dates and have limited places if you wish to attend.
Beware the hype
Having successfully warned investors not to invest in Bulgaria (Black sea and Ski)) back in 2005, we are now cautioning investors not to follow the herd to Romania. Some of the “deals” I have seen recently make the hairs on my neck stand-up and I have a very high tolerance to risk!
I am not giving Romania a blanket “No”, but would advise that a greater degree of caution and due diligence is required in a culture which is very different to ours.
Jet-to-Let magazine
As some of you know, when I get an idea in my head, whether I have any experience in the field or not, I give it a 110% effort and drive in order to make it a success.
Well, I have to admit, the magazine has been one of those “learning curves” which was almost vertical when I had the idea a few months ago in the shower! We have gone from no experience whatsoever in publishing, to sending the magazine off this afternoon for proof reading and printing by the end of the week.
Exciting is an understatement, frustrating at times yes, but the end product is something we can be proud of – also it’s FREE.
Armed with our newfound knowledge we will be getting down in January to putting together Issue 2.
For those of you who have subscribed, we would welcome your feedback; the first edition carries a feedback card and also a rather nice competition for those who reply - a 3 night weekend for 2 at the magnificent Orton Hall in the Lake District with champagne on arrival.
If you haven’t yet subscribed (for free) then please visit www.jet-to-let-magazine.com to secure your copy.
Have a fulfilling week
Best wishes
Dominic Farrell