double edged sword really, as its good for exporters that their products are cheapier for the continentals to buy
blade1
20 February 2008 22:06
22
johnnybravo (20/02/2008)
stevewright (20/02/2008) like you say, recession is a strong word, but fact and figures can be twisted
ok, in northern ireland, where theres an economic boom at the moment, house prices had been on a steady increase, are now falling.
u can say on average house prices are on the increase, but the average will take into consideration places like london, which is in a league of its own, as demand exceeds supply.
overall, if demand exceeds supply, prices will go up, but when everyone panics, starts selling their second buy to let property, which historically would have been places first time buyers would buy, this will create an influx onto the market, and of course, theres less first time buyers out there cause the banks are more cautious who they give them to!
so, then theres lots of property for sale, but no one to buy them…
Like i said though, london is a different situation to most of the rest of the country
of course, everyone has their own slant and opinion on things…
thats mine…
to be honest thats a bit simplistic and not necessarily true. in terms of buy to let properties, the investment decision is its rental yield (rental income vs opportunity cost of the capital and mortgage repayments etc) which determines whether its a good investment, not its absolute price. other factors aside, selling assumes that the yield falls below zero and is likely to remain so for the foreseable future.
if as you say the 1st time buyers are struggling to raise sufficient mortgages, then rental yields may in fact rise as they cant afford to buy, or do not want to invest in a potentially falling market so rental demands increase
if its an investment property and property values fall badly, the decision to sell is based on being able to earn greater returns on the realised smaller cash investment somewhere safer (which there may not be). many of these investment properties have been held for a number of years, and so have already made capital gains on them so its just reducing that, not actually making a loss. also bear in mind that selling a property has quite large selling costs involved which have to be factored in. I’m not sure that the risk of a slow down in the UK economy translates into panic selling of housing to be honest.
Cor i luv a man with intelligence…innit…
stevewright (20/02/2008) literally, sitting in lb all day, cause theres no work!
How about a change?
I saw somewhere the other day that TfL/London Underground are currently running a recruitment campaign for tube drivers. At £38k+ a year, it dont sound bad.
johnp
21 February 2008 05:27
24
I`m in the construction industry and it is quiet out there with no major works happeneing.
Im in the Engineering business for LNG, Oil and GTL plants…sorry to be different but business is booming and my rate just keeps rising.
Construction is massive in our industry…you just have to be prepared to work in Qatar and places like that. Fortunately, im in the Design side.
I’m sure it will pick up when it gets warmer John:) Then again it may be cos you are an ugly fecker:P:D
Pat
21 February 2008 12:10
27
No major works ?
What about the whole 2012 Olympic project thing, that’s gotta be the biggest construction project in Europe for the next 4 years surely ?
Just turn up over there in your bike kit & I’m sure you’ll be welcomed onboard as one of the Olympic village people… :hehe:
