Expectation: the Mother of Disappointment in the Overseas Property Market

July 2, 2009 - PRLog -- Which of these statements, taken from a recent report by Reuters do you consider the most bullish for the housing market?



“The number of completed sales per surveyor over the last three months rose to 11.8 from 10.6 -- the biggest monthly increase since April 2001 and the highest level since August 2008”



“Surveys from mortgage lenders Halifax and Nationwide both showed house prices rose last month, while approvals for new home loans -- a leading indicator of house prices -- have edged up in recent months”



“House prices (are) still expected to fall”



The answer is of course the third. When the consensus opinion is overwhelmingly in one direction, markets have a habit of moving the other way.



The stock market, which tends to anticipate future trends, has been rising strongly, despite ‘signs of a downturn’ everywhere you look. The homebuilders in particular have rallied hard off their lows.



Meanwhile, the chart of the leading exchange traded fund leveraged to real estate decline in the US  has dropped from a peak of nearly $300 just over 6 months ago to under $20 today. Investors ‘betting’ on a US real estate collapse have been sorely disappointed.



The magazine Moneyweek is still bearish on the UK property market, but has this to say about investing abroad:



“Just because the UK property market is a no-go area doesn't mean you should give up on investing in property entirely. Right now, there are major opportunities in overseas property markets.”



DSR Asset Management Ltd agree. Technical Analyst ‘Wilf’ Laurenson says



“We feel those considering buying a place in the sun or the snow, but who are holding out in the expectation of lower prices, are probably witnessing the opportunity of a lifestyle pass them by. The time to strike is now, while prices are still affordable, not when the herd picks up the scent.”



DSR Asset Management Ltd has identified emerging global regions with high growth and income potential, and holds an exclusive inventory of competitively–priced superior-quality property for sale in hand-picked and unique locations, ranging from luxurious city apartments to coastal building plots and eco houses

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DSR Asset Management Ltd is the only company dedicated to supporting investors in the worlds emerging and established property markets. We understand how difficult it can be to invest in the overseas property markets