Welcome to the first Distressed Assets newsletter

2009 seems to be flying past already: Easter has come and gone while summer is looming large on the horizon, a welcome sight after such a long and cold winter. I'm particularly conscious of the passage of time as the window of opportunity for a real bargain in the UK property market begins to narrow. Fragile public confidence is beginning to firm up in the face of some encouraging news over the past few weeks.

I ran the London marathon last Sunday and, although it was a fantastic experience, it's a great relief to have completed it and get back my weekends again (even if I am still walking like John Wayne). Just like a marathon, property investment is a serious undertaking and requires knowledge and preparation to achieve success.

Many property investors run into difficulties by trying to force a deal through too quickly or aggressively either through sky-high gearing or poor selection. We have always seen property as the best medium to long-term investment out there and nothing that has happened in the UK or elsewhere over recent months has changed our minds. What else can you invest in that will pay you anywhere near the same returns? (answers on a postcard please)

Despite this it always pays to look at the fundamentals of any deal and check any apparent values or yields yourself rather than taking anyone else's word for it. Due diligence should not be skipped over and it can be a time-consuming process.

That said when an opportunity presents itself and especially one as good as is currently available it's time to take action. I won't try and convince you that now is a fantastic time to buy UK property assets because I've no doubt that you will have reached that conclusion yourself already. Credit constraints are easing, prices are sensible again, yields are on the up and public confidence is returning.

Distressed Portfolios

It's an exciting time for the company as we have recently been able to access distressed portfolios at source through a legal contact. This enables us to look at property before it goes on sale either through an agent or via auction.

Many companies send out "property alerts" or lists of "Below Market Value" properties to their database of clients but I know from experience that there is no conveyor belt of bargain properties out there. To get a good deal you must be prepared to dig, and dig hard.

Distressed Assets Seminar

The first Distressed Assets seminar took place at the Institute of Directors on Pall Mall on Tuesday the 21st April and there was a great turn out on the evening. We covered the current state of the UK property market set within the current wider economic context, the opportunities available to the intelligent investor, the limitations of finance and the legal pitfalls of purchasing distressed properties.

I'm pleased to announce the next seminar which will take place in Liverpool on Tuesday the 26th May- please click here to secure your place.

If you can’t make the seminar but would like to meet up or discuss distressed property please email Alun Jones at alun@distressed-assets.co.uk or phone him on +44 (0)151 244 5656.

Best wishes,

Henry Powell-Jones