Spindok I see no bubble, I see demand for accommodation rented or otherwise I agree partly with johncharles the housing is the mainstay of the economy and I think interest rates will kill off any recovery if they go up, however if interest rates go up anyone with a mortgage should be able to pay it back, just the same if you rent. Regarding student loans the younger generation going to university are starting out with a loan of possibly £40,000+???? the older generation never had the same opportunity so they went to work, from day one they are earning money and that's how the money is in the hands of the older generation. 2 outlooks 1 My friend's son is going to university (engineering ) because his Day says you will have a great time wish I would have done it. so it's costing in the region of £45,000 + accommodation, and wants to go to a well known engineering company. 2 Another (my stepson ) wants to go to the same engineering company but has been accepted as an apprentice, starting on £12,000 pa with a £1000 a year pay rise over the period of time (3 years).as soon as he can afford a deposit HE Will be buying a house LOL. Jobs are out there and the economy can grow. A lot of people are too snobby to work and think manual work is beneath them. Regarding boats yes my dream Fairline Targa 43.
Ahhh The good old days..... Can't no longer do what you want, say what you want and soon think it either... Take care and continue to observe.. It's fun when you end up proved right when everybody says you are wrong...Thats the wonderful thing about Tw'er. It never does what it expected of it.. I shall have to spank it!! Oops. sorry.
I agree that 75% of cars are no more than glorified rental and rarely are the final balloon payments made,but I still think moters are generaly cheaper and more reliable than years ago,saying that im biast I like pug 306 dervs killed the last one with 180k on the clock.
The quality of products has went down though, therefore you need multiple iteam throughout your life when usually you could get away with one. Things are built to fail, so we never get out the bit and the companies continue to make money. As for cars being cheaper I disagree, they were cheaper when people actuallly had the money to buy them and get a deal but now with people just walking in with nothing and financing one, us with cash can't get a deal, we are expected to pay infated prices. They really don't want you to buy outright.
things like white goods and technology do appear to be substancialy cheaper than yesteryear the same with clothes think primark,cars also seem to be cheaper and more reliable .I used to find it amuseing visiting pensioners in there 300k plus homes bought on 1 wage over 20 years with nice cars on the drive that retired at 65 on realy good indext linked pensions moaning because there was talk of making them pay towards there care costs.i surgested to one he should think of downsizing and releaseing a couple of hundred k and he went bananas
them pensioners worked realy hard for there wealth you know,the young should just do without like they did.....lol. the reality is they could buy a 3 bedroom semi on 1 wage and bring kids up on said wage.they could also retire at 65 and were not sadled with 30k of debt for going to uni .now the systems that daft you have to have a degree for the most mundane of jobs.id not be surprised if stoke uni didn't do courses in finger painting.
I find it interesting trying to predict the future. Most people just go blindly on their way and remain stupidly optimistic right up to the end. What bubble? Interest rates? Why would they rise and anyway what does a 3% rise in my mortgage rate mean. How do you work it out? Somehow all the money in our society has ended up in the wrong places. It is sitting in the banks of the older generation who already own their houses, have nice cars and spend very little. The drivers of the next generation are all saddled with huge student loans, lack of well paid jobs and zero hour contracts. Some are lucky to have bank of mum and dad but the majority are not. I have been studying the leisure boat market. The top end of boats over £1 million is buoyant. Further down the tree there are thousands of vessels owned by from what I can see are people over retirement age and young people are simply unable to afford a house let alone an expensive toy. Brokers will try and tell you different but in the next few years it could become very interesting. I am monitoring executor sales where the asking price is being dropped by as much as 60%. I have been told that a sale is always possible if the price is right. Not true. I watch and can point out some that despite huge drops in the asking price have remained unsold for 3 to 5 years!! Could houses go the same way. On our nightly walk we now see people living in the hedges around our area. They have no jobs, cannot pay rent and are reduced to begging. I say walk around your local area at night. You will be amazed what you see....There is possibly a recovery but for most the benefits are still a long way off...
yes the housing market survived the last crash and I don't think most of the uk has got out of it yet,but we nealy didn't I think we hit around 6p at the lowest and had to sell assets to survive.take rbs and Lloyds they certainly have not recovered.
we could go like japan,now that would be interesting ie stagflation.the problem imo is that our economy is based on making very little ie a service economy driven by cheap credit very reliant on house sales and the city of London financial services.im not sure whats happening in china but there building entire towns with no one living in em.
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