e-Newsletter 15th June 2009 by Dominic Farrell

I was in Cyprus last week for the monthly construction meeting at The Grove Spa Resort, Mazotos and also enjoyed the 35C temperatures, sunshine, food (I like it too much!) and the more relaxed business pace.  I also spent some time at a new villa I purchased off plan a couple of years ago designing the garden and generally ensuring everything with the contractor was going to plan.

The demand for these properties is strong and we have already taken about 7 weeks of bookings without even having the marketing pictures and materials in place.  At almost £900 per week in the main season, ever increasing demand particularly from Cypriots and a limited supply of these type of properties being built, these units represent a good medium to long-term investment.

Unlike some countries in Eastern Europe, notably Romania and Bulgaria, which have been in economic and financial meltdown this year as a result of unsustainable weaknesses in their economies, the Cyprus economy remains resilient and is still forecast to grow, albeit at a much reduced rate.  The economy has performed well compared with other EU member states and is well placed when the recovery phase of the economic cycle begins.

UK Economy and Property

The weekend press was full of “Green Shoots” theories about the UK economy and I don’t intend to go into any detail here as much has been written elsewhere.  What I will say is that a lot of the leading economic indicators are looking better than expected, but given that only a few months ago we were expecting Armageddon, then we should not be surprised.

I have remained very positive throughout the financial crisis and became even more upbeat once decisive action was taken to secure the banking system, reduce base rates and introduce quantitative easing in order to increase liquidity and the money supply.

Economic policies are paying off.  It’s early days, but the basis for a recovery is being built.  Many investors, whether in oil, bank shares or sterling have made good money in the past few weeks.

Property prices are rising in London and where London leads other cities eventually follow.  As banks return to lending and consumers become more confident, then we will have the key factors in place for a sustainable recovery in the UK property market.

Distressed Assets

Spotting the financial crisis as an opportunity, I formed Distressed Assets in October 2008 at the height of the malaise in order to seek repossessed properties at bargain basement prices which had strong cash flow.  All of our purchases have been stunning and will make substantial returns for clients over the medium term.

I personally completed on a repossessed 5 storey office block with underground parking in a prime city centre location last Wednesday.  I dealt directly with the bank and purchased the property at a price which covered their liability.  The numbers look like this:

I am very pleased with this investment and given the price I paid have managed to invest in a substantial commercial property “below” the bottom of the present cycle in this type of asset class.

This morning I have been viewing residential properties which have yields ranging from 8% to 19%.  Yes that’s nineteen!  Now is the time to strike and invest in repossessed property for your long-term wealth.

If you are keen to understand how you can benefit from these incredible deals, then join us on one of our free seminars:

Distressed Assets Seminars – Dublin and London
Distressed Assets will be hosting seminars in:

Starting at 6.30pm

“Make Substantial Profits From UK Bank Repossessed Property”

I will join Henry, our financial consultant and our lawyer to present the case for investing now in UK property and highlight the potential returns and pitfalls.  Places are allocated on a first come first served basis.

To secure you FREE ticket, fill in the form here:

www.distressed-assets.co.uk

Best wishes

Jet-to-Let Events

International Base Rates

Foreign Exchange Rates

Investment Blogs