Should property investors have seen the worldwide economic collapse coming back in 2008?



In hindsight it is very easy to look back on the 2007/8 worldwide economic downturn which began with the collapse of the US sub-prime lending market. However, were the signs there? Should property investors have been a little more cautious? Did we all get wrapped up in the idea that property markets would continue to rise forever and a day?


Active Member
Hindsight is a wonderful thing but there were stark signs that the US sub-prime market was stretched to the limit. Companies were cutting their profit margins to the bone to attract turnover, often selling property to customers who could blatantly not afford to pay back their loans. The only escape would have been an increase in the value of property acquired but the property boom of the US was never going to go on forever.