The car market is a very useful barometer of the general financial situation. For years now people have been bleating about the cost of living etc, and when you look at how much car you can get for loose change and how much more ordinary people spend as a matter of routine it just doesn't stack up. This is in sharp contrast with the 1980s when a £500 car was generally a rat that would need several days of work every year to get through the MoT. £500 cars were sought after back then because that was frequently all the money that people had, not so now. £500 is now 2 months' lease for a great number of people. How many continue with this when the bils start going up remains to be seen. Me? I'll carry on doing 18000 miles a year in a car that cost under £3k, 2 years ago.
Housing market
- Thread starter matt j
- Start date
JensenHealey
pfm Member
I can imagine large numbers of people are not going to roll into a new PCP contract when renewal comes around. The interest rate will be a factor and people will need money to pay their fuel bills instead. The market for new cars will get very tough I should think - that is when the manufacturers can actually build them in the first place. The knock on effect will be car makers in trouble (again - there is a cycle every few year it seems). I have no predictions about winners and losers.
Anyway - this thread is about housing, so we digress....
Meanwhile my 24yr old daughter has her mortgage offer in writing and is pressing ahead with buying her first house. Good for her, I hope, as it is fixed for 5 years!
Anyway - this thread is about housing, so we digress....
Meanwhile my 24yr old daughter has her mortgage offer in writing and is pressing ahead with buying her first house. Good for her, I hope, as it is fixed for 5 years!
sean99
pfm Member
I'm not so certain. This Truss/Kwarteng budget is going to hurt a lot of Tory voters, and benefit only a tiny minority. It's as if the folks who pull the Tory party's strings have realized that the jig is up at the next election, and it's time to loot the country dry while they still can. If my suspicion is correct there will not be much largesse for "ordinary" people who are in debt over their heads. We could see something akin to the repossession crisis of the late 1980s over the next couple of years.
More like £500 for one month, the US car payment situation is even more ridiculous.
Bit longer winded than the original video as it was a tik tok vid I can't embed here
andyoz
pfm Member
You should go back and read the "2020 Stock Market" thread where much of what's playing out now was predicted once we saw the Fed pivot and basically buy the stock market and alot more into the bargain....I also mentioned to watch out for Russia ...on the flip side I also said to buy CINE shares LOL
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andyoz
pfm Member
This is how property prices drop.
https://www.theguardian.com/money/2...is-slipping-away-because-of-kwartengs-actions
Saw the same behaviour in Lockdown 1 when many people pulled out of their purchases to 'wait and see'. Many came back into the market months later after 1) Interest Rates dived, 2) Stamp Duty holiday, 3) Covid helicopter money, 4) the race for indoor living/work space.
I can't see what factors will triggers buyers rushing back this time...it only takes 20-30% of buyers to change their behaviour...
https://www.theguardian.com/money/2...is-slipping-away-because-of-kwartengs-actions
Saw the same behaviour in Lockdown 1 when many people pulled out of their purchases to 'wait and see'. Many came back into the market months later after 1) Interest Rates dived, 2) Stamp Duty holiday, 3) Covid helicopter money, 4) the race for indoor living/work space.
I can't see what factors will triggers buyers rushing back this time...it only takes 20-30% of buyers to change their behaviour...
eternumviti
Insufficient privileges to reply.
Selling. Inbetween exchange of contracts and completion....
Mike Reed
pfm Member
Sue Pertwee-Tyr
Accuphase all the way down
The last 'big' property price drop was after the 2008 crash. The government of the day got the brunt of the backlash over that, even though it wasn't really down to them at all (and they actually handled some very difficult times pretty well, IMHO).
This time, there's nobody else to blame, really. I'm sure they'll point the finger at Putin by way of a reflex deflection, but the public has already made up its mind who's behind this, and rightly IMV.
Enfield boy
pfm Member
Well done Liz, ahead of the curve. This should put us at a great competitive advantage when the US and perhaps others hit a recession.
andyoz
pfm Member
My bother in law works in a small financial services firm. He said last week, their mortgage adviser guy had the worst week of his entire 30+ year history working in that industry.
If anyone thinks houses prices are going to hold I think they're deluded. 20-30% drops I think depending on location. All of the 'fake' gains of the last two years will be wiped out as a minimum.
If anyone thinks houses prices are going to hold I think they're deluded. 20-30% drops I think depending on location. All of the 'fake' gains of the last two years will be wiped out as a minimum.
andyoz
pfm Member
I don't follow car PCP financing stuff as never use it. But a mate does and there's been carnage at that end too. Probably why he's been sending me screenshots of high end cars from official dealers that have had £30k slashed off their prices overnight last week. Asset prices are being adjusted across the board now that interest rates are returning to historical averages. There's a MUCH greater risk to speculation now and lots are running like rats from a sinking ship...
Ponty
pfm Member
Typical 2 year fix now 5.75% (2.34% in December). On a £300K mortgage that’s another £10K a year interest…
https://www.bbc.co.uk/news/business-63119047
https://www.bbc.co.uk/news/business-63119047
Application was accepted and references sorted so I should be picking up the keys and sorting the contract on the 14th. Unfortunately a fair bit of overlap between my current rent and the new one, landlords eh, they want a months notice for you to leave but they want you to move in as soon as possible, can't have it both ways! So I'll be out of pocket there, it's already costing me a bomb so that's nice.
andyoz
pfm Member
Good luck with it Matt. It's real shit for your generation but I sense things might swing back your way in the future re. house prices.
andyoz
pfm Member
Yep, it's what I've been harping on about on this forum for ages...ZIRP basically results in people becoming less afraid of the principal amount they are borrowing. Classic bait and switch by the financial system.
It's the same with PCP...most buyers don't actually know the price of the car they have just signed up for....
TBH it's my own fault, I'm in the generation that should have just scraped in before all this mess, it's the ones behind me that have it bad. If I'd played the game and got married in my 20s then got on the ladder straight away I'd be rolling in it by now.
My sister is 13 years younger than me and earns less money but is in a much better position than me simply because she had 7 years in a relationship, bought a house and banged the money away.
Well, that's one way of spending it, I suppose.