Now may be just about the right time to invest in property, either by home buying as Cash House Buyers or by investing in a home buying or analogous property company that has a firm survival plan to take it through the credit crunch

It’s ironic that free falling property prices have at least partially led to the current credit crunch. This is in turn creating a crisis in confidence amongst Bank Shareholders, because they know that if they hang on to those shares too long when others flee, the share value will inevitably dip below the critical value which renders the bank’s capital inadequate for loans and deposits on its books.

At this time a rescue solution has to be put in place, and that means either nationalisation or takeover by a competitor. At this point the ill fated shareholders have forfeited all bargaining rights. The rescue has to go through, and the government or the buying Bank cannot pay over the then current distress value of the shares.

So, where can you securely place your hard earned money to work for you in these troubled times?

Well providing you make sure you have more than enough ready cash to get you through anything the next two years may throw at you; why not use some of the rest in becoming or investing in home buying either as Cash House Buyers or by investing in a home buying or analogous property company that has a watertight survival plan to take it through the credit crunch

If this sounds like lunacy, think about this; in the UK, simply to keep the Market stable over the next ten years; 3 million new houses are required. At the current rate of building, we’re not likely to see more than a third of those built. This shows that the medium and long term prospects are excellent for investing in property, because it’s much more likely that demand will outstrip supply than the reverse happening.

Cash House Buyers and Home Buying Companies usually buy properties at 80% of market valuation, because the sellers are more than happy simply to find someone to “sell my house”. This ensures that they have a sensible margin to pay for all their own costs, insulate them from the market falling a few more percent in the short time they own the property, and allowing a discount to make the sale happen quickly.

If you don’t incline towards the Cash House Buyers role for yourself; you’ll see lots of good opportunities coming up to invest in Home Buying Companies. Many Home Buying Companies have used loans to enable them to maximise their property portfolio, and so hugely improve their Return On Capital Employed. Now they need to decrease borrowings, and they require an introduction of cash to do that and to ensure they can service their remaining debts until the market stabilises and begins to rise again.

If you’re thinking about such a move for your money; do all the due diligence, and in particular make sure that your investment will be enough to ensure the company’s survival, and will give you enough of a voice to make sure that it does just that.