$Multi-Million Investments That Signal The End Of The U.S. Property Crisis

Higgs Boson Deep underground in Switzerland a great discovery has been made, yet only a few people can explain what it actually is. It is a hidden particle called a Higgs Boson and it has something to do with how objects gain mass.

The Higgs Boson as scientists explain it is what gives a particle mass. The Higgs field meanwhile is where the interactions take place to create this mass, so in one sense we can apply the same idea to property markets.

As one scientist explained it, it is like having a room full of people who gather around a person who causes a stir when they enter a room. Everyone listens to what that person has to say and soon the whole room gathers around them, thus creating the mass.

Now some characters cause more of a stir than others which accounts for why different objects have lower or higher masses – the more influential the character, the higher the mass.

Each of the people in this imaginary room represents a Higgs Boson hence the excitement that scientists can now explain its existence and add another piece to solving their great puzzle.

Moving back down to earth, it may be easy to predict the course of a property market from past history, it is not so easy to call a turn in the market, or when a market has reached its bottom.  This is where the mystery lies. For this we need to look at those factors that will drive recovery.

If we look at property markets as a similar type of ‘field’, we begin to see how it might be turned and gain a critical mass when influential people or companies decide to enter it in a meaningful way.

This is what we are now seeing happen in the U.S property market.

First it was Warren Buffet’s firm investing $3.85 billion to the bankrupt housing finance and loan business owned by Residential Capital LLC. Then we hear this month that Blackstone Group LP the biggest buyer of U.S commercial real estate since prices hit bottom are also turning their attention to the residential side of U.S property.

The company has invested a staggering $250 million in buying foreclosed single family housing in the U.S.  Their aim is to rent them out to those who are unable at the moment to secure themselves finance to buy homes, or who perhaps choose not to buy out of fear.

The above investments are the tip of the iceberg, however they generate interest further down the chain and help other investors who may be sitting on the fence to believe in the existence of a recovery.

Sentiment will then gain a critical mass as banks feel confident enough to lend to buy property, foreign investment in U.S property increases -as we are already seeing – and this eventually filters down to the average person on the street who feels confident enough to invest in a home again.

Do you feel as confident about the prospects for the property market in the U.S this year as Warren Buffet? Please leave your comments below:


Kind regards

Brett Tudor


Property Expert