The property market is notoriously precarious at the moment. House prices have been dropping on an unprecedented scale and nobody is able to sell. For one group of people this is a good thing. For those who do still have the money to buy, property can be picked up a lot cheaper than in the previous year or so. This is great for those looking for a long term investment or even a buy to let property. Many people are having to rent because of the crisis surrounding trying to obtain a mortgage and if you can pick up a cheap property that you can then let out, you should be quids in.
For those who really want to sell their properties but do not want to lose money or find themselves in negative equity, the good news is that house prices are set to rise by 25% by 2010. That's just two short years and you will not only gain back the price that your property has recently lost but some extra on top. All you need to do, is ride out the current storm.
Some institutions have been set up to help and advice people on coping with the current credit crunch and it would seem that some are just in it to make themselves extra money. Reports from the BBC have shown that a buy to let property company have been less than honest about their properties earning potential and value.
Customers have been approaching the company and purchased property that they have been told will accrue a certain rental income according to facts based on the local rental prices and demand. Once many of the owners have tried to rent out their properties they have found that this isn't actually so and that when it comes to selling they can't even recoup their losses.
This is leaving buyers in extreme financial difficulties but the company claim that many of its customers have managed to break even. Not exactly what you make an investment for now is it? The properties are often sold as being with discounted prices but it turns out that the discounted price is actually the real value. Buyers are being misled into the value of the property and are being mis-sold what they take to be a bargain that they can make money on. On top of this the company made 2,500 pounds from each investor with property seminars on how to make money from renting.
This does not just apply to UK property. The company have also sold overseas buy to let property with the same sales pitch and have been found wanting in the same way. The situation is so dire for some investors that they are facing bankruptcy and losing their own homes as well as their buy to let property.
The company have even been assuring some buyers that their property comes with planning permission when it doesn't, bringing untold difficulties to the purchasers once paperwork is all signed and sealed. It is widely accepted that all investments, including buy to let property investments, come with risks. However, we always expect sellers to be completely honest when we are sinking our funds into something we hope will make us our fortune in the future.
The company in question state that as buy to let property investment is a long term thing then people need to look at the bigger picture. Profit will not be discovered every month - particularly in the current climate. However, this does not explain why they would value their properties at over the odds int he hope of enticing people to invest or to mis-sell properties by claiming that they have planning permission when they don't. The best advice is to get your own surveyor on the job and secure a valuation you can trust.
In todays competitive marketplace, customer loyalty is serious business. Its widely known that holding onto an existing customer is far less expensive than trying to gain a new one. Its also well documented that theres a high risk of customer defection following a merger or acquisition. Most buyers anticipate some degree of customer-base erosion post-closing. How can a buyer evaluate the risks associated with a potentially weak customer base?
However, what many buyers fail to do is to get a deep understanding of the behavioral and attitudinal attributes of the targets customers and quantify the acquisitions impact on customer loyalty before shaking hands on a deal. Although most buyers are armed with financial statistics on a target, many lack data on the stability and loyalty of the target companys customer base - an important indicator for forecasting future revenues.
Evaluation of a customer base should be an integral part of due diligence. An objective customer loyalty audit can reveal what drives customer loyalty. For example, customer loyalty may be impacted by the products or services delivered by the company, by the relationships with current staff or by a variety of other factors.
Over the past few years, great strides have been made in customer satisfaction measurement techniques, which help companies identify and understand their customer base, gauge customer loyalty, and develop a loyalty profile. Customer loyalty is an attitudinal metric that captures the strength of a customer relationship, which is strongly linked to critical customer behaviors. Tracking and managing loyalty can help a company understand the reasons why customers defect, and how important they are to its bottom line.
A customer loyalty profile also can be used to place an asset value on the customer base. Using a customer loyalty metric for a broad cross-section of customers allows a company to analyze its customer profile, identify problem situations, and develop a plan for converting neutral and vulnerable customers into loyal ones. Scientifically measuring customer loyalty is a key step to minimizing risk in buying a company.
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Both Catherine Harvey & Ben Needles are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Catherine Harvey has sinced written about articles on various topics from Culture and Society, Home and Wedding Gowns. Property expert Catherine Harvey looks at the risks of a investment.. Catherine Harvey's top article generates over 1500000 views. to your Favourites.
Ben Needles has sinced written about articles on various topics from Business Credit Cards, Anger Control and Business Credit Cards. About the Author (text)Dr. Mark Heitner is the founder of MidMEx (). Many patients have been owners of mid-sized companies with a bus. Ben Needles's top article generates over 550000 views. to your Favourites.