Reply To: Spanish property market 2007/2008 report discussion

#79614
Anonymous
Participant

@Peter Good wrote:

That´s true Mark.

It´s important to make a distinction between a small amature property investor/speculator and the lage multi-million pound investment fund investor.

The smaller investor is usually in it for a quick profit as they cannot stand to be without their stake money for too long. They also have very little credibilty or bargaining power with the builders and banks when purchasing – one, or just a few properties. They are also very nieve and easily talked into over-commiting themselves.

When a large fund manager comes along, they dictate the terms at the bank and with the builder. They will walk away if the deal costs a penny more than their return survey spreadsheets indicate. These “big boys” will not recognise an artists impression or a nicely coloured floor plan. What they do recognise is the economics of a deal. I´ve seen these incredibly complexed spreadsheets with terminology that means very little to me. But, when the figures go in one end and the sums show up with the right numbers at the other, they get very enthusiastic indeed. Should the figures not look right, they are as cold as ice!

Make no mistake, there is a world of difference between the small speculator and a professional investor. The most obviouse difference I suppose is that only one of them is wearing a shirt at present.

true to a very large extent, but the “amateur” should be doing all these things too perhaps on a more simplistic basis but nevertheless do their homework more and walk away f necessary but they get caught up in it all and think its easy, which it isn’t necessarily