The luxury property market is starting to feel the pinch of the credit crunch. Even luxury Real estate are beginning to fall in price. Luxury real estate in Manhattan is dropping in value. Many pundits have been saying that this would never happen, but the harsh reality is that in all but the most exclusive areas, over building is a serious issue.
Further afied, the used office furniture market is also feeling the pinch, with prices dropping as job losses increase. No end is in sight at the moment, and even the Europeans are feeling the drop in confidence in the markets. France, Germany, SPain, and even many Asian countries are being hit.
Stock markets all over the world are plummeting in value, and governments are scrambling to repair the damage done by over eager bankers intent on squeezing every drop of commision from every deal. In some cases, completely unjustified. There is no more jam in the pot though.
This is good news for cash buyers, with many property investment opportunities becoming a bargain. In some cases, in the United States, for instance, properties are selling for as little as 30% of their value of only two years ago.
Australia is offering similar bargains, and some property investments in Sydney, Australia becoming more attractive by the day. One waterfront development in particular offers serious bargains to the cash-rich property investor.
The financial crisis will eventually settle out. One can only hope that the governments leave well alone and allow market forces to play out. If a few banks go to the wall, so be it. Self in flicted damage as far as anyone can tell, although we suspect the commisions and bonuses will continue. Accountability does not seem to be in the offing.
