Credit Crunch hits the Brodericks !!

fc123

Generali wrote: »

Look at me, look at me, look at me now!

and is OH right???

Generali

fc123 wrote: »

and is OH right???

Good question.

If there is a recession (and it's looking increasingly likely) then cash is a very good thing to have as you can buy assets and stock very cheaply.

If there isn't then you risk selling a big, important asset on the cheap.

I'd be inclined to sell especially given that you're not making much in the way of yield off it from what you say and so presumably you can use the cash more profitably in another way and also you lose a big chunk of potential hassle and so can put the time to more productive or more enjoyable use.

In your position (from what I know of it) it'd be a pretty close run thing though - costs of buying and selling are horrendous which make the potential gains much lower.

fc123

Generali wrote: »

Good question.

If there is a recession (and it's looking increasingly likely) then cash is a very good thing to have as you can buy assets and stock very cheaply.

If there isn't then you risk selling a big, important asset on the cheap.

I'd be inclined to sell especially given that you're not making much in the way of yield off it from what you say and so presumably you can use the cash more profitably in another way and also you lose a big chunk of potential hassle and so can put the time to more productive or more enjoyable use.

In your position (from what I know of it) it'd be a pretty close run thing though - costs of buying and selling are horrendous which make the potential gains much lower.

I will get him to read this.
I know you are both right (considering all circumstances) though he thinks I interract with psychos on here (his downtime is spent watching cra9 movies; I think he watched one to do with werewolves/psychos + internet forums ).

The cash realised will never be cash though...it will always be a house...not spent on anything else if poss.

The thing that really bothers me is underselling and then The Great HPC of 2005 repeats itself...and we get priced out of the level we are at now.....plus inflation eats away at the current day value of the cash too.

I know this forum is full of reassurance but it's only opinion, anecdotal and not area specific.....though all the economic arguements make sense for ;prices to keep on going down.

fc123

Just to add on...the big thing is that we don't live in it....which sounds really stupid and obvious....and are not likely to for 4 years (when dd is 18) plus our permission to let was only for 3 years and to rent again we would have to muck about with the mortgage etc.
....and there is this plan of a gap year in 5 years time.......

neverdespairgirl

Generali wrote: »

Look at me, look at me, look at me now!

But enough about me - what do you think of me?

Zammo

mr.broderick wrote: »

because my wife has gone back to work on a part time basis now her maternity leave has expired.

LOL.

Feeling the pinch are we??

:beer:

Lotus-eater

Zammo wrote: »

LOL.

Feeling the pinch are we??

:beer:

What was the point of that?

Getting a bit nasty on here sometimes.

Generali

fc123 wrote: »

I will get him to read this.
I know you are both right (considering all circumstances) though he thinks I interract with psychos on here (his downtime is spent watching cra9 movies; I think he watched one to do with werewolves/psychos + internet forums ).

The cash realised will never be cash though...it will always be a house...not spent on anything else if poss.

The thing that really bothers me is underselling and then The Great HPC of 2005 repeats itself...and we get priced out of the level we are at now.....plus inflation eats away at the current day value of the cash too.

I know this forum is full of reassurance but it's only opinion, anecdotal and not area specific.....though all the economic arguements make sense for ;prices to keep on going down.

I'd put the money into Indexed Linked Gilts (linked to the RPI) in your shoes if you sell up.

If the British Govt has to default on its debt then money is going to be the least of your worries.

Conrad

Broderick I feel vulnerable even though we could down size to a fairly good house with no mortgage. I'd love some of what youre on. If we downsize and I ceased trading I would want to start another business, but Im scared it would'ny work, and I could'nt take being employed again.

I'd like a bespoke furnitue and fittings shop but the risk........

fc123

Generali wrote: »

I'd put the money into Indexed Linked Gilts (linked to the RPI) in your shoes if you sell up.

If the British Govt has to default on its debt then money is going to be the least of your worries.

OK, I confess I haven't a clue what Indexed Linked Gilts are BUT my dad is a shrewd investor (irony is that I will inherit a load of shares in commercial property funds one day...bought on the cheap during the dotcom boom) so I can ask him........so try to sell in the Autumn then I guess.