Buying at bottom of market ''possible now'' - commercial mortgages

Published: 28.4.2008

In news which may be of interest to those with Commercial Mortgages, it has been suggested that now may be a good time to invest in parts of the UK property market.

Neil Cable, head of Fidelity International''s European Property business, told Reuters on Friday that the UK market had not yet bottomed out, but that some deals existed in areas which would not now fall any further and will subsequently rise.

He stated: "If you are cash buyer with a bit of patience and the ability to be very selective, then you can pick off deals that already reflect the bottom of the market."

Mr Cable reasoned that while the effects of the credit crunch could go on lingering for some time yet, perhaps even into 2009, he said his own firm had managed to get large discounts from investors who had been hit by the credit crunch but did not want to make public their losses and so were willing to make quick sales.

It has recently been suggested that some areas are better equipped to manage through the market downturn than others.

Senior Royal Institution of Chartered Surveyors economist Oliver Gilmartin said earlier this month that in London the West End was in a better position than the City, due to the lower exposure to the subprime losses of firms there than banks in the square mile.