Recession and the property market

April 24th, 2009

After the signs of recovery in the property market a few weeks ago, it looks like its is going to be just a blip. Reports today say that the recession is going to be much worse than first thought. It was hoped that the first 3 months of the year would show signs of a decrease in the rate the economy is shrinking. The predictions were wrong, the amount the economy is decreasing has grown to 1.9% compared to the 1.5% in the last three months of 2008.

I was hoping that the property market would improve. Being unemployed means that we are not to stable financially. We have a lot of money tied up in the house and I would like to think that I could access it in an emergency by selling the house. Houses are not selling at the moment so that would not be an option. I think this is the reason a lot of companies have popped up looking to quickly buy people houses if they need to sell to get the money. The companies are taking advantage of people that are desperate, but it is better than repossession.

I was surprised when my sister brought a house this year. I guess they didn’t want to wait around for things to improve. Now everyone has moved out from my parent’s house. My mums not very happy about it, but my Dads OK he’s hoping to get an office set up.

They had saved up quite a good deposit I think, they had to of done as 100% mortgages are no longer available. I do not think 100% mortgages should ever have existed, it allowing people to take irresponsible amounts of debt easily. It is unfortunate that some companies are providing deals that pretty much make 100% mortgages. It’s possible to take out a 75% mortgage and a 25% loan from the property company. Surly this is the same and just building up problems for later, you would have thought they would of learnt from what is currently happening.

Tags: ,
Posted in Uncategorized | Comments (0)

Leave a Reply