, it’s not doom and gloom but I believe a reality , I’m a business to business telecoms broker I’m seeing every type of business imaginable and can’t find any of them that are not happy or on the verge of going bust not my imagination but a reality the real rot is yet to come from the credit crunch and I think it’s going to be worse than it was initially as it was mostly the banks & finance that got hit in the first wave , don’t I know it as I was a bad credit mortgage broker . Now it’s going to hit everyone else the banks are on their way up with our money and a lending policy like steel. The one to watch out for is the UK property market I’ve been saying to my Mrs since the crash prices would reset to pre boom over 12 years ago , they need to get to 3.5 times average income to stabilize so average house price currently greater London 3 bed 165-180 is , my theory would mean £105 average property price. Currently most people or no one would take that for their property unless they were absolutely desperate to and there lies the issue, I know 8 people selling their house even had the Sold sign on the board 8 months later no completion, chain collapsed due to finance issue somewhere in Chain usually the first time buyer end . First time buyer needs 25 percent plus deposit not easy for a first time buyer , then they have to have credit history like the virgin Mary , not just good credit but perfect credit voters role etc etc , history of other facilities etc and some luck to boot . How do I know this you say? Well as a mortgage broker previously I know a lot of mortgage brokers, I know some that were big and worth millions and some that are small. Other than the ones who dealt with the city high-flyers, not one of them is making any money, I mean no money, and one guy I know was making 100k a month profit he is struggling to do £1500. What everyone else sees is house prices holding, if you are a seller or a mortgage broker you see the truth a false market, you want £200k as it was worth in the boom, you will get offered 30-40k less from a serious buyer with funds or get your price from a buyer who needs to mortgage their property up to the hilt. Take the serious buyer with funds at least you’ve sold your property , take the one who needs to get the mortgage or has someone in the chain who needs a big mortgage and unless you get lucky you get the problem 8 months chain collapses .
factor in the Muppets who got carried away at the top of the boom who cannot sell less than top of the boom prices and you have stalemate some ones got to lose to break the cycle , currently no one’s going to put there selves forward .
Okay I hope I’m wrong as it not going to be good but I’m totally convinced this will happen along with 75% of the economists who deal in this. So summery don’t invest in property now unless you can shave of 40% of the asking price minimum
But leave it alone only the seriously rich win in this market, Alan Sugar having it off doing large property deals at silly prices, the power of liquid wealth.
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