Cruch to last at LEAST another 18 mnths

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neverdespairgirl wrote: »

I'm sorry, I'm too busy splitting my sides laughing at the idea of Broon as a good chancellor to say anything remotely sensible in reply.

I too am having trouble posting after that comment, I'm on a hospital stretcher at the minute receiving oxygen.:D.

pickles110564

wolfman wrote: »

I just wish the property crash would happen sooner, then rents would drop, or I'd be able to buy a place, and resume normal spending rather than having my money tied up in rent.

Why will rents drop in a crash? They did not drop during the last crash.

Dithering_Dad

wolfman wrote: »

I guess some will be able to survive it better than others. I don't think my job would be in danger, and if it was in the area of the market I'm in, I don't think I'd have too much problem finding another job.

Out of interest, what line of work are you in? I can't imagine too many that are immune to recessions, except for bailiffs, reposession firms, etc.

People who work in the public sector usually consider themselves immune to recessions because they do not need to turn a profit in order to survive, but I suspect that due to Labour's usual tactic of bloating out the public sector, many jobs will have to go simply because the country cannot afford them.

Other people think "Well, I can't be made redundant because I'm the only one who can operat the spraken-flange machine".

Unfortunately when a manager is faced with redundancies, especially within larger companies, he is given a percentage figure and often without any thought they get rid of whole departments, the green wood along with the dead. Within the public sector, many people get 'outsourced' and have to apply for their own jobs, with the obvious tactic that 5 jobs have been turned into 1 role and so the 5 former incumbents are now competing for a single role.

I work in HR/Payroll and have seen many companies in the throes of headcount reduction. More often than not, the managers are under pressure to reduce headcount quickly (and they're in fear of their own jobs) and will make decisions that defy logic.

This is why I keep saying that not many people are safe. You can have cutting/bleeding edge skills in a particular industry, be the most industrious employee or have the company director as a golf buddy. All count for nought when the axe is falling. Finding another job, even if your skills are up to date is always hard when the few roles that become available are swamped with 100 desperate applicants.

wolfman

pickles110564 wrote: »

Why will rents drop in a crash? They did not drop during the last crash.

They'll ease though. Once people start buying again, the rental demand goes down, and so do the prices. The reason they're getting so much higher now, is that people are choosing to rent instead of buy, so demand is high. That's how I see it anyhow.

Dithering_Dad wrote: »

Out of interest, what line of work are you in? I can't imagine too many that are immune to recessions, except for bailiffs, reposession firms, etc.

Software/web application development. Where I'm currently at we're funded for the next couple of years already (it's a startup) so I'm quite lucky in that sense. And having worked hard for the past 6 years I'm at a level that it generally quite sought after, so am well positioned. It'll be in moving forward, pay rises, bonuses, promotions etc... that I'll feel the slow down.

Generali

pickles110564 wrote: »

Why will rents drop in a crash? They did not drop during the last crash.

As I understand it, the rules on housing benefit have been changed so that tenants whose rents are being paid by the taxpayer have an incentive to keep their rents down.

Also, the government finances are likely to be much more stretched this time given that at present the Government is running a £50,000,000,000 defecit and we haven't even started a recession yet!

Dithering_Dad

wolfman wrote: »

Software/web application development. Where I'm currently at we're funded for the next couple of years already (it's a startup) so I'm quite lucky in that sense. And having worked hard for the past 6 years I'm at a level that it generally quite sought after, so am well positioned. It'll be in moving forward, pay rises, bonuses, promotions etc... that I'll feel the slow down.

Not sure I understand the 'we're funded for two years', does this mean that you have an order book filled for the next two years, or that you have funding in place so that you can keep the company running for two years?

I'm generally an optimistic sort of chap, but I also work in I.T. and know how often 'cast-iron' projects get canned when the finances aren't available for new developments. I've worked on projects (when I was a permie) where we'd be all set to start on Monday to find out during the preceeding week that we were now surplus to requirements and the project has been shelved (and the client was a major oil company).

If it's funding in place for two years (in the form of a loan or savings), it's amazing how quickly a company can burn through cash, especially if work dries up for a while, the overheads (rent, wages, tax, utilties, insurance, rates, etc.) tend to remain the same even though the income is zero.

I don't to be a doom-monger (heaven forbid :rolleyes:), just want to give you a bit of a 'heads up'. Good luck with the statup (I assume it's your company?) - I started my company almost 2 years ago now and apart from being away from home all the time, I'm quite enjoying the autonomy.

Generali

chucky wrote: »

i think you mean www.propertysnake.co.uk

they wouldn't be making money off directly from hits on their site.

i would have thought that it would have been from advertising but they don't have adverts on their site.

does anyone know how they make their cash?

They have Google Ads on their website.

rizla01

chucky wrote: »

i think you mean www.propertysnake.co.uk

they wouldn't be making money off directly from hits on their site.

i would have thought that it would have been from advertising but they don't have adverts on their site.

does anyone know how they make their cash?

As well as the above there are THREE advertisers' links at top of page and I expect they get a kickback every time someone clicks on a property to view as this is potentially a site for finding bargains out there.

wolfman

Dithering_Dad wrote: »

I don't to be a doom-monger (heaven forbid :rolleyes:), just want to give you a bit of a 'heads up'. Good luck with the statup (I assume it's your company?) - I started my company almost 2 years ago now and apart from being away from home all the time, I'm quite enjoying the autonomy.

Yeah it's funding on quite a big scale. Everything is going well at the moment, we just need to keep on track. The more investors we take on the less control and value we get back. Unfortunately it's not my company either.

justpurchased

wolfman wrote: »

Yeah it's funding on quite a big scale. Everything is going well at the moment, we just need to keep on track. The more investors we take on the less control and value we get back. Unfortunately it's not my company either.

Keep your ear to the ground though. Some backers release funding quarterly or every 6 months depending on performance. Not being negative but make friends with someone in accounts .