Among the many effects of the credit crunch that has affected the world is the devaluation of goods all over the world. This is also the reason why many big companies have experienced bankruptcy as their assets are devalued, causing negative effects in their business operations. The credit crunch among business industries has also affected the general public through the devaluation of some of their assets, particularly real property assets. This is evidenced by the decrease in price of some properties previously valued at much higher prices.
Forbes has published a list of properties that have experienced devaluation. Included in this list is the Holmby Hills Estate, located between Beverly Hills and Bel Air in California, which is valued at $125. Second on the list is the Jacobean style manor Dunnellen Hall in Greenwich, Connecticut. Third on the list is Updown Court in Surrey, England, which is valued at $110 million and is regarded as the most expensive house in the U.K.
Just like any crisis, the credit crunch that is affecting business sectors, particularly the real property industry, also has several effects. One major effect of this financial crisis is the devaluation of properties, which is bad news for the owners of a particular property. This is because when the property is for sale, the vendor will not be able to get the price that he wants. On the brighter side, the effects of the credit crunch on the said industry can be viewed by the investors as a good opportunity to acquire these assets as they priced lower than usual.