Fortunes are made in downturns.
I recall Virgin’s Richard Branson in his book …..telling the tale of how he managed to buy his caribbean island.
He regaled the saga of the then owner had put the 74 acre island up for sale at $6million.
Cheeky Richard , (who could in no way afford the asking price) , saw this and as his Virgin way as a status quo disruptor , gave a low ball offer of $100,000, never thinking it was nothing more than a bit of cheeky fun.
Of course his offer was not even considered by the agents.
Then many months later , a funny thing happened. The owner made contact and said, if Richard would up his offer to $180,000 and immediately settle, the island was his .
What happened?
Well now, it seems the seller was significantly asset rich but also very cash poor. Like so many today. He urgently required a certain amount of cash to fulfill an urgent demand for payment or his whole house of cards would collapse…
So that is how cheeky Richard Branson is now the owner of Necker Island in the Caribbean.
With the perfect storm Brexit and world events are causing, global price rises, cost of living increases, interest hikes, mortgage rates are going up.
Over stretched owners are having to consider, or will be forced to before defaulting, to sell out.
Volume builders are already turning off the tap and mothballing projects.
House owners are downsizing and many are moving to rentals, as they just cannot afford the increase in their cost of living.
This situation will get a lot worse before it gets better, with many commentators suggesting 2025 at the earliest, before matters improve.
You only have to look at the last recession, to see that sellers do heavily discounted deals in such harsh times.
Should you be able to take action during these times, and many can and will, there will be bargains to be had.
I recommend if you are able, take up the opportunity. Get your new dream home when the market is not at its top.
Materials and equipment will have less demand.
Agents will see panic in their industry and as their sole drive is for securing monthly commissions or they don’t survive, they will encourage sellers to grab deals with both hands. Sales that are not chained to other sales fulfilling, deals will be done.
Resources and specialists will be obtained more readily, construction lending will ease, all as work dries up.
My development company, as many others will too, will be seeking out great deals at this time.
And if you are conflicted by acting on what you perceive as other’s misfortune remember this.
Many sellers have owned a long time and have enjoyed fantastic property value increases over what they originally bought in for, so most likely even with a deal price in todays market, they will come out of it just fine and quite happy.
Also to have to lose a home and all the life finances wrecking that causes, mortgage defaults, repossession, credit obliteration, home life ruining, is horrendous.
So being able to quickly facilitate a sale, can be a lifeline for many sellers, who can then go onto rebuild there lives without worry and fear or an obliterated credit score , that would most certainly rule them out of another mortgage, possibly forever.
Money can do good.
So you may actually end up helping save the seller from financial catastrophe, as Richard did with his island.
So you too can do good with your money, while securing what you want.
I recommend anyone minded to have a custom designed residence sometime in the future, take action today.
Design work and permission approval processes, can take 6-12 mths depending on your local council, this happens before you can be building anyway.
So why not start looking into it now.
You can start being aware of your favourite locale, what properties or land are for sale, make some bids.
With our guidance your ducks will then already be in a row, so when the right opportunity appears you can act, fast.
Prices will be more competitive as other work dries up.
Sellers will be keen to sell.
Richards’s tale shows discounts can be available, just not immediately advertised.
You then, like Richard, before too long will be living a dream of a life, many want, yet only few can and do have.