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Look After Your Money And Help The Economy Out Of The Present Economic Crisis

November 27, 2008

With the world’s main financial markets in a position of very high precariousness; puttingyour money into stocks and shares at the present time is definitely not for the less-than-brave. It’s hard to see a market sector which is even a little positive.

Building contractors are announcing substantial falls in profits, and property starts are down 64% in the USA and even more in the United Kingdom. Financial establishments have all the well publicised problems of their own, and both of these sectors’ troubles are now surging out into other fields, with world leading engineering companies like JCB cutting back their activities as orders from the building industry for new equipment shrink back.

With all the insecurity, you shouldn’t risk putting any savings that you could possibly need in the medium term into stocks and shares, because you simply do not know where the price of the stocks will be when you try to turn your investment back into cash.

As we’ve also seen over the last weeks, money in the bank is nothing like as rock solid as we would have thought only a handful weeks ago. So what on earth can we do to make certain we don’t become a casualty of the current recession?

Well it’s true that the property market also seems to be in chaos, and indeed is seen by many as the starting point of all the current recession, and it’s also not the place to put any money that you may need to use elsewhere in the short to medium term. Nevertheless, in the medium to long term the property market is the most liable to recover soonest, and it’s also the area where you’re least likely to lose everything.

Think about it like this, Companies in which you’ve invested can go bankrupt, and disappear. There is also an all too real risk of that happening to some bank deposits, but land and property just cannot disappear, and it’s very nearly unthinkable that property prices will drop to anything approaching zero unless the whole of the civilised world goes down the tubes.

Moreover, The UK Government have already forecast that we need 3 million additional homes in the next 10 years, just to stop property prices spiralling UPWARDS out of control. In the current recession, that’s not happening, and doesn’t look likely that we’ll we see 300,000 homes per year being built in the near future.

That’s why many people are investing in Companies that buy houses, or are becoming Cash house buyers themselves. They can safeguard their savings over the long term, by offering a much needed Quick Home sales service, that is helping to overcome the stagnation caused by the banks’ inability to lend to each other in the current recession.

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