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Recession Is Over
5 Answers
is it good for you ?will the value of property go up again ?
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“Recession” is purely an economic term (two consecutive quarters of negative growth) that has no real meaning to people as far as their finances go. It does not necessarily mean that prices go up beyond income; it does not necessarily mean that people have less money to spend; it does not necessarily mean that people are being evicted from their homes in droves.
I’m glad you got through the recession relatively unscathed, ummm. So did I and so did just about everybody I know. When it, and the accompanying “financial crisis” was announced five or six years ago I had little doubt that it would have minimal effect on me apart from my having to rebalance my investments in the light of unnecessary and uncalled for ultra-low interest rates. I looked forward to shops being empty so I could get my goods unmolested by the hoardes; I looked forward to not having to book holidays 12-18 months in advance to get decent accommodation; I looked forward to restaurants and bars being far less busy making for an altogether far more enjoyable experience. How wrong I was! Shops were as busy as ever; decent holidays still hard to come by at short notice; meals out a nightmare. The reason? Well just about everybody suddenly had huge amounts of Wonga thrust into their pockets by virtue that their mortgage interest had reduced to virtually zero. Money became cheap and, whilst sometimes a little tricky to secure, once you had a loan you were away.
Now what do we see? Forecasts of doom, gloom and despondency because the mortgage rate might, just might, go up by a quarter of a percent or so some time in the next year or two. This, apparently, will push many struggling families over the financial precipice.
Give me strength! In the past five years I’ve seen many of these “struggling families” in shops, on holiday and in bars and restaurants. They don’t know the meaning of the word.
By the way, kate, unless you are selling and not buying something else, rising property prices do nothing for anybody bar mortgage lenders, solicitors and estate agents. The reason they are rising is nothing to do with the economy or the end of the so-called recession. It's simply supply and demand. There are too many people chasing too few houses and the biggest driver of population increase is uncontrolled immigration.
I’m glad you got through the recession relatively unscathed, ummm. So did I and so did just about everybody I know. When it, and the accompanying “financial crisis” was announced five or six years ago I had little doubt that it would have minimal effect on me apart from my having to rebalance my investments in the light of unnecessary and uncalled for ultra-low interest rates. I looked forward to shops being empty so I could get my goods unmolested by the hoardes; I looked forward to not having to book holidays 12-18 months in advance to get decent accommodation; I looked forward to restaurants and bars being far less busy making for an altogether far more enjoyable experience. How wrong I was! Shops were as busy as ever; decent holidays still hard to come by at short notice; meals out a nightmare. The reason? Well just about everybody suddenly had huge amounts of Wonga thrust into their pockets by virtue that their mortgage interest had reduced to virtually zero. Money became cheap and, whilst sometimes a little tricky to secure, once you had a loan you were away.
Now what do we see? Forecasts of doom, gloom and despondency because the mortgage rate might, just might, go up by a quarter of a percent or so some time in the next year or two. This, apparently, will push many struggling families over the financial precipice.
Give me strength! In the past five years I’ve seen many of these “struggling families” in shops, on holiday and in bars and restaurants. They don’t know the meaning of the word.
By the way, kate, unless you are selling and not buying something else, rising property prices do nothing for anybody bar mortgage lenders, solicitors and estate agents. The reason they are rising is nothing to do with the economy or the end of the so-called recession. It's simply supply and demand. There are too many people chasing too few houses and the biggest driver of population increase is uncontrolled immigration.
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