What it all means to me!

carolan78

As a private renter the house prices taking a slow tumble is a dream come true as I may in a few years time be able to afford my own home without a mortgage I can not afford. On the surface this appears to be the case but will it be?

As an average Joe Bloggs I think even with a decrease in the house prices I will not be able to buy a house in the economic climate. If we hit resession then the intrest rates will be high making the morgage repayments on a reasonably priced house just as high as that on a overpriced house today. Jobs will be cut back will one of these be mine or my husbands? Considering I work in the rail industry and he works in the defence indutry (not in the military) chances are yes one or both would lose our jobs. Food will be much more expensive (even Jamie Oliver or our very own Old Stylers would struggle to make a meal with a fiver), fuel will sky rocket, people won't be able to afford petrol so therefore less cars needed, leads to motor industry having job cuts. It carries on having a knock on effect like this through almost every sector of UK industry.

So if the s**t hits the fan like predicted thats how I see things panning out. I see money I wanted to save for my childrens future been spent to try and clothe and feed them. Praying every night neither me or my partner lose our jobs and then we might just get through it. Loss of all luxeries such as internet, cable tv ect ect

Thats my take on it but I am not saying that I am right either, how do you see life in the future for you and your families if a full resession hits? Just interested in other peoples views. NO FLAMING PLEASE AS NO ONE HAS A CRYSTAL BALL IT'S PURELY OPINION AND SPECULATION

Kez100

Be careful with your finances (i.e save or repay while you can), make reasoned not panic decisions and don't worry about that over which you have no control. Love, cherish and support your children in their eduction - that's what gives them a future, not a pit of cash.

I have no idea what will happen to us if a recession hits, anymore than the next man, but panic won't help.

fc123

I'm trying to be calm, rational and informed at the mo. :rolleyes: Difficult.

My business will be 22 this summer and things are getting challenging.
Fortunately, I have a plan.
To get everythng sorted and ride out the slump doing a BSc. Trouble is all my plans keep getting mucked up with Credit Crunches and Bank crisis'

Davesnave

I see big problems in cities if things get really tight. Many people living now have never experienced real hardship, have only ever lived for the moment and have no coping skills whatever. Will these folk placidly accept their fate? Chances are, they will find scapegoats and decide that it is 'justified' to take what they can't have. Things could turn ugly. You only have to look at the behaviour of some in the temporary crisis of last July's flooding; not a lot of Dunkirk Spirit shown by a minority, who made things worse for the majority.

Sorry to sound so gloomy and I hope I'm entirely wrong. Hard times will probably bring many people closer together, so it's still rational to believe that communities may benefit in that way.

mr.broderick

fc123 wrote: »

I'm trying to be calm, rational and informed at the mo. :rolleyes: Difficult.

My business will be 22 this summer and things are getting challenging.
Fortunately, I have a plan.
To get everythng sorted and ride out the slump doing a BSc. Trouble is all my plans keep getting mucked up with Credit Crunches and Bank crisis'

I cash bought a customers car yesterday in work for our pitch. It was a 54 micra 3 door with 18,000 miles on it, give him £3k for it. I asked him what he was going to drive now, he said he is b.uggering off to cala millor in mallorca next week, he sold his house for £192,000, mortgage was 77k, originally on for £234,950. He's renting a 1 bed apartment for £350 a month which i thought was reasonable, they have both got a job in the family bar which is below the apartment 5 days a week 10 til 6 march til november. They get breakfast and lunch thrown in. They are being paid £35 a day each. Doesn't this sound fantastic ?

PasturesNew

mr.broderick wrote: »

...he said he is b.uggering off to cala millor in mallorca next week, he sold his house for £192,000, mortgage was 77k, originally on for £234,950. He's renting a 1 bed apartment for £350 a month which i thought was reasonable, they have both got a job in the family bar which is below the apartment 5 days a week 10 til 6 march til november. They get breakfast and lunch thrown in. They are being paid £35 a day each. Doesn't this sound fantastic ?

Well, it sounds it, but the reality of living that life is:
- you're in a flat, not a nice little seaview villa with a good sized outdoor space
- they're working through all the hot months when things are happening

I'd do it for earlier hours, say, 7-3.
£35/day isn't shabby either. Presuming an hour's break, that's £5/hour.

I'd go abroad like that except I don't speak the lingo, never been abroad, don't know anybody ... and just because it looks good now, I'd probably pick the wrong place or whatever.

mr.broderick

PasturesNew wrote: »

Well, it sounds it, but the reality of living that life is:
- you're in a flat, not a nice little seaview villa with a good sized outdoor space
- they're working through all the hot months when things are happening

I'd do it for earlier hours, say, 7-3.
£35/day isn't shabby either. Presuming an hour's break, that's £5/hour.

I'd go abroad like that except I don't speak the lingo, never been abroad, don't know anybody ... and just because it looks good now, I'd probably pick the wrong place or whatever.

Yeah I think these peeps have been holidaying there for years and know the owners of the bar, they are from around here apparently been there 25 years. I think she said £35 a day but it may have been 35 euros but still not too bad, I definitely remember it being £350 a month though. Apparently the bar is right on the beach and the apartment does have a sea view, doesn't have pool though but hey with the med 25 yards away who would care ?

ianmr65

carolan78 wrote: »

. If we hit resession then the intrest rates will be high making the morgage repayments on a reasonably priced house just as high as that on a overpriced house today. Jobs will be cut back will one of these be mine or my husbands? Considering I work in the rail industry and he works in the defence indutry (not in the military) chances are yes one or both would lose our jobs. Food will be much more expensive (even Jamie Oliver or our very own Old Stylers would struggle to make a meal with a fiver), fuel will sky rocket, people won't be able to afford petrol so therefore less cars needed, leads to motor industry having job cuts. It carries on having a knock on effect like this through almost every sector of UK industry.

Erm that would be the deseriable outcome. Recessions are liveable through. The alternative, is that we are at the start of a slump. Which means ultra low intrest rates, huge negative growth, the chinese, and indians calling in all the loans, crashing prices, banks going bust, deflation, massive unemployement, and bread lines, riots and large wars. Hasn't been one in the west since 1930, and the us federal reserve are doing everything they can to prevent it. Ben bernake cliams to be an expert, and believe keynes, when he says you can print and inflate your way out of one. We've already started down that road, it's only a matter of time before the ecb follow.

I believe that the period in history that will come to be known as the 'golden age', in the west will be 1950 - 2010

baby_boomer

Deflation?

Given the worldwide shortage of natural resources and food?

Austin_Allegro

Carolan, at least you're being realistic and are considering the possibility of a downturn. Preparation, even if only mentally, is important.

The problem with the UK is that people have been on a credit fuelled binge for so long they have forgotten what even minor cutting back involves, and this is causing people to panic.

Remember that Britain has been through hard times before. In the last century we had two world wars, a great depression, and several smaller recessions, but we pulled through. Remember that only 15 years ago we were in the middle of a recession and a house price crash and society didn't commit suicide en masse! It's even possible that recession could be beneficial in some ways - people and families pull closer together, people relearn that the best things in life are free.

So all I can advise is don't worry too much, save as much as you can, and read the Old Style pages on here for advice - they've helped me a lot.

fc123

4 years to go to get last one to 18.........am up to Plan G at the mo....probably will get dashed in the next 3 months by another crisis not of my making.