Many people are concerned regarding the global credit crunch and the corresponding troubles in the property market. Without access to credit, many individuals and businesses are unable to purchase property, and as such property values have dropped from their high values in 2005 and 2006. This has been a hardship on many, but in every crisis there is an opportunity, and this credit crunch is no exception.
The collapse of readily available credit and corresponding drop in property values means that many prime properties are now priced well below their real value. As property values are sure to rise from their current crisis levels within the next decade, now is actually one of the best times to invest in property. Many banks are now in possession of a large amount of valuable property they have received as collateral for failed loans. While it is true that unattended properties which are foreclosed upon tend to be in poor shape, this is generally due to the fact that the bank is unable to tend to the property, and newly foreclosed properties are generally in superb shape.
Many of these foreclosed properties are also on prime locations, and even if the property is of low quality or incomplete construction the land itself may be worth much more than the asking price. While it takes a lot of practice, research and planning, those with money to purchase said properties stand to make a great deal of money in the next few years.
The problem is, of course, acquiring the funds to purchase such properties. Persons with exceptional credit can still get loans, even large ones, as banks are in need to make money on loans and are thus desperate to make loans to persons they are certain will not be risks. Those with large amounts of wealth at their disposal are of course able to simply use their own money to purchase such properties. Many people have been making a lot of investments in this manner, however most persons don't have large sums of money on hand especially in the current economic crisis. Luckily, there are ways for persons of more modest means to invest.
The easiest and most common way for persons to pull together and cash in on this crisis is for them to pool their money to purchase properties. There are many ways to do this, and anyone wishing to do so should consult lawyers and other organizations which specialize in small business contracts. Everyone wishing to pool the funds will, of course, need to be able to take equal parts in the decision making process, as well as the profits and losses that may come about when the property is leased or sold. The rapid availability of inexpensive property due to the credit crunch also makes now an excellent time for persons who have wished to start a small business to do so, although again it may be necessary for them to pool their funds instead of taking out a loan, unless one or two of them have excellent credit histories.