|
Post by tonyd123 on Apr 1, 2021 14:05:21 GMT 1
Anyone else on here think that there is going to be a recession once furlough ends, companies start going bust and taxes go up to pay for all the money we have spent on Covid? Perhaps the classic bike market will dip and a few people who have paid silly prices for a quick return will get their fingers burnt? I work in the housing industry and it is crazy at the moment, can't build them fast enough. I certainly wouldn't be maxing out on a new mortgage with interest rates at an all time low, but lots of people are. I am just dreaming that I can get a reasonably priced LC at the end of the year
|
|
dc
Thrash Merchant
Posts: 352
|
Post by dc on Apr 1, 2021 16:36:05 GMT 1
It's very difficult to predict what will happen. Mortgage wise, rates have been really low for ages. Lenders should be stress testing applications at higher rates but it will still come as a shock when they go up as many will have taken on further commitments with no affordability check after getting a mortgage agreed thinking they can manage and that might play a part. As for everything thing else, furlough etc., who knows.
I've been looking at bikes too, I would like to think that there is a fair price for them and some of the silly stuff on eBay will settle down. Some of it shouldn't even get close to a decent price but desparatation sets in and folk appear to throw the advice they would give others out the window. Plus, I don't trust a lot of the sales on there now. All I can say is, don't get drawn into paying ridiculous prices and think about what is written, does it make sense! I think if you follow that, something will come along that's right and who knows, they may drop a bit. That easier to say if you already own what you like of course.😉
|
|
|
Post by steve h on Apr 1, 2021 17:31:58 GMT 1
You are dreaming. No recession signs here.. Houses selling within a week of being put up for sale in my street. Apart from shop workers, bar staff and owners, people on low wages, self employed and suchlike being turned over, there wont be any change for most...shame... houses prices will continue to climb out of reach for the young. An increase in interest rates to say, 15% would give that market a real "reset"... and a much needed one at that (if you care about the predicament of youngsters that is...)
The days of a reasonably priced LC are gone.... That in itself wouldn't be so bad.... if they weren't so bloody good!!
|
|
|
Post by 4l04ever on Apr 2, 2021 14:04:43 GMT 1
Our local house prices are still going up. Rentals also going up. There are jobs shortages due to firms laying off... but bike prices still going up!
|
|
|
Post by tonyd123 on Apr 5, 2021 21:04:29 GMT 1
I just think that with house (and bike) prices still rising and an uncertain future, something will snap and we will crash. Hope I'm wrong.
|
|
|
Post by kirkhd on Apr 5, 2021 21:32:53 GMT 1
Sons neighbour put there house up for sale £180k(not cheap for this area) and it sold in 3 day and a dozen viewings. It could all go belly up as these days they give massive mortgages out and folk go to there very limit? If the rates go up a % or 2 then they will be buggered god help them if it ever went up to the 14% that i had to pay in the late 80s early 90s.
|
|
|
Post by dusty350 on Apr 6, 2021 7:26:25 GMT 1
Prices going up at the mo - houses, flats etc selling same day with offers over the asking price common. Bit like 1987 when prices went mad before the 2 times tax relief was due to end. When it went to 1 times tax relief, the arse fell out of the market overnight. I sold a house just before the deadline for 73,000. 6 weeks later it was worth 10 grand less ! Took a few years for it to recover. Talk some time back was of a Depression, worst than a recession, but who knows ?. A 1 bed flat doesn't start until around £210,000 around here, and my kids have got no chance of getting on the ladder at those prices Interesting to note that some Banks/Building Societies had as many as 20 odd different Mortgage packages recently. A lot have withdrawn many of the deals, to as low as 4 different options, so maybe that's an indication of what's coming ? Dusty
|
|
|
Post by tonyd123 on Apr 6, 2021 19:59:51 GMT 1
I bought my first house in 1988, interest rate was 16% for 95% mortgage. The good news was it could only get better
|
|
|
Post by dusty350 on Apr 6, 2021 20:21:10 GMT 1
I bought mine in 87. Had to get a 100% mortgage as I hadn't enough savings, so I had a base mortgage and a top up mortgage. One mortgage was 16.5 %, the other was 17% by the time I sold the house I remember my wages were £600 a month, and the mortgage payments were £720 per month Managed to sell the house a month before I would have defaulted on it. A very shit time in my life for sure !
|
|
|
Post by headcoats on Apr 6, 2021 20:33:33 GMT 1
We live on an average road and in 8 years we have been here the houses are fetching another 100 K !
|
|
|
Post by donkeychomp on Apr 6, 2021 21:40:05 GMT 1
I now own a house outright. Got it valued the other day for probate reasons, but I couldn't care less what it's worth as I have no intentions of ever moving. It's ideal for me, great location, lovely neighbours and my workshop is the ground floor!
Alex
|
|
|
Post by reedpete on Apr 6, 2021 23:41:24 GMT 1
Both houses and LCs have one thing in common...there’s a shortage ! For as long as there is, and no matter what the state of the economy, the prices will rise. Interest rates affect home owners affordability but the rental market doesn’t work like that so if retail demand is suppressed the rental demand will grow....catch 22 if you don’t have bank of mum and dad to provide deposit and be a guarantor you’re screwed....and that’s just to buy an LC !
|
|
|
Post by 2banger on Apr 15, 2021 21:16:28 GMT 1
Doesn't really matter if recession is looming . Keeping your own finance's in check and increasing your disposable for what's round the corner . Since covid arrived we ave been smashing the mortgage payments. Sold my Sunday car and 6 bikes leaving us with last repayment on 1st of September 2021 saving 9 years of interest. Since government introduced furlough , stopped stamp duty and mortgage holidays many have been spending money they don't have with many not knowing there job security. Hindsight is a wonderful thing
|
|