In recent weeks the figure invariably has gone down. If you want more detail, this can always be found if you want to look for it. The chances are if you are reading this article, you will do this more often than not. However, the vast majority of the population will be left with a feeling of more gloom about their own property and conclude that this is a bad property market.
The frustration with this way of reporting is that it distorts the bigger picture of the housing market. How can one compare a property in the middle of nowhere to a property in a prime area where an individual will (even in this market) pay a premium? The media in the main tends to concentrate on the owner-occupancy market, and this is fine as long as a clear distinction is made. Although stating the obvious, there are completely different motivations for somebody to buy a property to live in. These will include proximity to place of work, schools, the need for more space, increased income and so on.
When you start looking at the investment market, the reasons for buying are completely different. “Are they?” I hear you cry. Location will always be a prime consideration, as will the same underlying reasons of somebody buying any property. However an investor will have a far clearer set of objectives, and is not emotionally attached to the transaction in the same way that somebody who is selling their house or buying a new one to live in will be.
This is where Montello’s approach means that no one deal will be standardised. Our business is about understanding what the borrower is aiming to achieve. This experience of writing the deal is essential. Simply put, if we like what is being suggested (and the asset) we do the deal. On the other side of the coin, if we reject a proposition, this often gives the borrower time to reflect on the underlying proposal.
This brings me on to the fundamental point of this article. It is true that one man’s disaster is another’s opportunity. The more perspicacious know that when any market suffers from poor press and media headlines, the market lends itself to opportunity. As with any opportunity, timing is key and the ability to move at pace the overriding driver for such transactions. Short term finance can offer both a solution and an answer for raising capital quickly and to seize an entrepreneurial moment in the market.
