Winners and losers in a property downturn

The cagier property companies are the ones that are going to make money, while most people will end up losing.

The temptation whenever there is a market turnout is to sell and sell as fast as possible in order to preserve profits, but as recent times in the property sectors of many countries have shown, the time to expand business services and property holdings might actually be during this time of downturn.

A number of different trust funds have been forced to sell off property because of a rush to redemption by their clients. When the clients saw downturn they ended up in a panic and that panic is the thing that caused redemption which of course eventually led to the massive sell-offs that occurred in many of these different property markets.

To help try to combat the problems with redemptions, companies like Close Investments have actually suspended the ability of their clients to redeem their investments. This is a move aimed at forcing clients to stay in the trust funds for at least the next six months and it is a move aimed at allowing the trust funds to keep their property holdings longer than they would be able to were funds redeemed en masse as they seem to have been so far in these property markets.

While some companies are having problems like that, other companies have actually been flourishing. These are the companies that were cagey in their investment strategies and have spent the last few years slowing down their businesses and hoarding money to spend when the property markets started working their way in the opposite direction. Helical Bar is one of these companies and with market downturns all over the world, the time has come for their strategy to take centre stage.

Companies like Helical Bar have been on a buying spree recently to acquire more property and it seems as though their strategy has worked, with the share price of the company gaining over 20% in just one month of trading.

While Helical Bar's strategy for dealing with the property downturn was indeed a brilliant one, it also illustrates a wider point. The people who lose in today's property market are the ones that sell off and run for cover while the ones that win are the ones that stick it out.