Greek tragedy plays into hands of property investors

Mark Posniak - 24 June 2011

So, Greece, the country that gave the world some of its profoundest dramas, looks set to end in tragedy - and the Euro may go up in flames with it. It's as is Sophocles himself penned the drama that is currently playing out on the continent. 

Of course, if Greece does fall, and many believe a default is inevitable irrespective of what happens next week, there could be all kinds of ramifications for the UK economy and property market, as caution and nerves rise, liquidity dries up and the effects ripple throughout the eurozone and beyond.

What's certain, among the uncertainty, is that a crippled Europe will further impact our own crippled economy and we could rapidly be back to Square One - not that we have progressed too far from it anyway given the anaemic growth of the past year.

Anyway, that's the bad news. The good news is that the sheer disarray and lack of direction in the UK and European economies right now means interest rates are likely to remain low for some time yet.

The consensus, in fact, is now edging closer to H2 2012 before we see a rise in Bank Rate (excuse me, if I am beginning to sound like an economist). Hell, there's even talk following yesterday's Bank of England minutes that we may see more QE.

Now I, like most people, am not fully au fait with the intricacies of quantitative easing but I do know that asset purchases only happen when the economy is hanging by a thread.

The other good news - for professional property investors, at least - is that increased uncertainty and a possible further decline in house prices will mean formidable and numerous buying opportunities.

And the best bit of all is that the short- and medium-term finance sector has never been as competitive or as healthy. Borrowers can secure fantastic products at even better rates. In ancient Greek tragedy there is never a winner, but in this modern economic play, there may just well be.