--- Recession (30)

rusty_knight: I agree. In a recession those with lots of capital can make a 'killing'....... for example, shares in banks are now 'cheap' by historic standards and somebody with spare money might think that this sector is undervalued and a good medium term investment.

I despise banks sincerely - they lied and lied last time we had a property collapse in the UK and 'promised' they would only lend responsibly in the future.... but it pays them to follow the herd instinct and make good paper profits by lending foolishly (e.g. lending somebody five times their self-declared [often false] annual earnings - so that some guy earning 10k per annum could pretend he was earning 20k per annum and borrow 100k which was obviously going to wipe him out with just a couple of percentage points increase in interest rates - remember if interest rates were say 5% and went up to 6% it's an actual increase of 20% NOT 1% in what you have to pay.......)

Once everybody is crowing about how much money they've made on their property it's time to take your profit....... a couple of years ago the average Brit was earning something like £80 per day, but his house was increasing in value by an average of £150 per day....... nothing is for free, and that kind of Mathematics is unsustainable - right?

I had a buyer for my house in the UK at my asking price in June. I decided NOT to sell for personal reasons.

I knew it was financial suicide but I wanted my 'space'..... my house is now back on the market at a price that is 12.5% less than my prospective buyer was happy to pay just three months ago!

I intend selling it now even though it's gone down and shall go down further in value; I believe it'll take at least five years to regain it's former worth, and five years of mortgage payments and related bills would be a waste of money in my present circumstances!

In five years I can easily double the net profit, and hence increase my income - and having a decent income that kicks the crap out of inflation is what counts........ there are too many people who are rich on paper, because of the perceived value of their property, yet (because their income is relatively small), they have to live very frugally. I see zero point in living in a wonderful house that's worth 'loadsa money' if you cannot enjoy a decent lifestyle. Keeping overheads as low as reasonably possible is the key to happiness and being able to afford chocolate whenever you want it!

Sommerauer71: That is a very good point Rusty.

I was going to sell my house last year when I loved here, but after discussing it with the children as it is their home too, we decided not to.

I have three years left on my mortgage as I have reduced that burden significantly over the years, I ahve worked hard to do that, when I had my house valued, it was 25k less than a year ago, I will hang onto it, as I believe I am young enough to hope that it will go up again and keeping it makes sense as I traverl back to the UK alot and of course it is my children#s home.

I know my job is safe, my contracts in the UK are a tad feast and famine, for me, I am lucky enough to know my payments are fixed until the end of the term. So I can budget properly.

We are not in a recession in the UK; yet, it is not healthy, but we are hanging on, people still have money to spend,.

But you have given great insight, Robert thank you.

rusty_knight: Why, thank you very much...... it's nice to know that not everybody thinks I'm a complete idiot!

I've just completely two weeks of negotiating a deal for my mother to stay in a nice hotel for a total of 60 nights a year - the deal includes unlimited cups of tea and water and I think all parties are 'happy'; especially myself as I'll be able to take a week (including the two weekends either side) off six times a year and fly away in the knowledge that my mother is well-cared for and happy............ she'll have the same carers look after her in the hotel that she has in the villa, for example.

Now all I need is to devise a cunning plan to pay for it - any ideas?

Please do NOT suggest anything that involves working for a living!

Only joking re. the last two sentences - everything is taken care of within budget - fingers crossed!

Sommerauer71: Rusty, you are not an idiot whatsoever...

But I must ask, is this in a hotel? Or a 'hotel' for the elderly?

Just so I am not confused.

rusty_knight: A proper 4 star hotel that is literally five yards from the beach. My mother has all her mental faculties - why should she be dumped with a bunch of geriatrics just because she is paralysed. I chose this hotel specifically because it has a staff lift direct into the kitchen and she can then be wheeled out to the restaurant with zero steps to negotiate........... the hotel manager also just happens to be a family friend who attended my dad's funeral and is a decent, caring man - I've seen him look after a lady who used to fly out from the UK on her own who was wheelchair bound (and didn't have the luxury of her own private carers) - I myself stayed at the same hotel for a whole week a year ago and had a very pleasant stay (a local break from caring for my parents, although I ended up visiting them three times a day in the villa to make sure they were both ok - which kinda spoilt the point of the exercise).

My mother will love 'holding court' and kidnapping unsuspecting people passing by with an imperious:

'Come here - now!'

Sommerauer71: She sounds delightful, I can imagine she is a fascinating lady.

Sommerauer71: She sounds delightful, I can imagine she is a fascinating lady.