How did you perform during the recession?

chucknorris

When I used the term recession I don't mean the technical definition of a recession I just mean the downturn in the economy generally related to house and share prices.


I think I performed almost as badly as the English cricket team:

Houses
Despite looking to buy, we didn't actually buy any additional houses, nothing was for sale in our area and criteria (3 double bedrooms). By the time we widened our target area and loosened our criteria to include 2 double with one single bedroom (much more common) it was too late, and our market has now risen at least 25%.

Shares
Again a very poor performance, plenty of opportunity to invest for the long term at sub 5,500 ftse levels. But I only invested comparatively small amounts and then took short term profits (what on earth was I thinking). Eventually I invested more for the long term, but at about an average ftse level of 6,200. My only defence is that I don't have a lot of experience with the stock market and I was erring on the side of caution, but my portfolio was screaming out for more shares for diversity and balance.

EDIT: I am probably doing now what the English cricket team are, looking back and thinking how on earth did I play that so badly?

chewmylegoff

I'll give myself a groin thrusting 11/10.

chucknorris

chewmylegoff wrote: »

I'll give myself a groin thrusting 11/10.

I might have just scraped a pass at 4/10 but more likely referred with 3.5/10. I did at least take out max SS ISA's every year (even at around the ftse frightening level of around 4,000) and also some non ISA investment at about 5,500 (but cashed in for profit when it would have been better left invested for the long term).

nickj_2

chucknorris wrote: »

I might have just scraped a pass at 4/10 but more likely referred with 3.5/10. I did at least take out max SS ISA's every year (even at around the ftse frightening level of around 4,000) and also some non ISA investment at about 5,500 (but cashed in for profit when it would have been better left invested for the long term).

ftse at 4000 is the best time to buy , if you buy monthly then you're on to a winner , it's when it comes to sell that people get it wrong , usually when the proverbial has already hit the fan

wymondham

difficult to say as it's not over yet is it?

Graham_Devon

Sorry, I haven't got hundreds of thousand of pounds to invest in several different areas and see "pots overflowing". And nothing really to boast about either.

So the only thing I can chip in is "I got by". Kids have food in their mouths, roof over their head etc.

Which is better than not, like some others who lost everything, so happy with that.

chucknorris

Graham_Devon wrote: »

Sorry, I haven't got hundreds of thousand of pounds to invest in several different areas and see "pots overflowing".

Why does it have to be 'hundreds of thousand of pounds'? It is all relative to each individual's resources. I'm sure I have seen you posting about buying shares in the past, is that not the case? The people who would have done best are probably those who bought property in London (and other similar 'hot spot' areas).

chucknorris

wymondham wrote: »

difficult to say as it's not over yet is it?

Well I think the best value has now gone in share funds and trackers, fair enough as far as property prices are concerned, some areas haven't gone up yet, but my target area (in London) has.

gazter

wymondham wrote: »

difficult to say as it's not over yet is it?

Which metric is getting worse? We are already at a point on many levels that we reached in 2007, which was the top end of a fifteen year boom.

gazter

Its tricky to say how i performed. I have a lot more now, than i had then. In 2007 i was three years into my very first house (bought at a discount on an affordable housing scheme), by 2007 it had increased by £45,000 in value. My own business hasnt suffered during the recession, the reduction in interest rates resulting in my tracker mortgage dropping by £180 a month made us feel in some ways better off.

I would say it got a bit harder in 2010. The previous government ramped up public spending so much that it in many ways soaked up and hid the real scale of the economic drops the country suffered. The coalitions attempts at reigning it back even slightly have shown just how used to the presents for all system we can get.

We sold our house early this year, for maybe a bit short of the high of 2007, but the reduced interest rates meant we had actually paid a much bigger chunk of it off (we kept up a higher repayment), given us equity to buy a four bedroom country house (as it was described by the estate agents).

As long as interest rates stay low, life is good for us, when they reach back up to 6%, which they may do very soon, we will feel the pinch.

System

I saved a small fortune thanks to low interest on my mortgage. The only shares I have are through my work's share scheme which is actually quite generous, I'm 500% up on that.

I also was fortunate to keep getting decent pay rises/promotions throughout it all as well, 35% pay rise altogether since 2008, hoping for around 8-9% this year.

I guess some of that is offset by my gaff being worth about 10% less.