Strikes

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philbell
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Strikes

Post by philbell » Sun Apr 27, 2008 2:31 am

It seems we are heading for a series of strikes in all walks of life. Teachers are after 10% and their support staff have been offered 2.45% so no doubt they will be next as the true cost of living for normal people has risen way above this. My personal power bills have risen considerably more on their own before any interest rates are included. Now the oil workers are starting to strike in Scotland over pensions. The police are also on the brink.

What do people feel about how they are coping and how things are affecting them personally? I am lucky in that I am not mortgaged to the hilt like many are but despite this the rise in gas electricity has made a huge difference in my monthly budget!! I am sure others have it harder and as interest rates are expected to rise this is gonna put a lot of people in deep trouble.

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Dom
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RE: Strikes

Post by Dom » Wed May 14, 2008 4:24 pm

The only real impact the recent credit crunch and pay disputes have had on me is in the housing market. I'd like to buy my first house, and while the house prices are supposedly going down, so too are the number of mortgages on offer. The interest rates are going up, and so everything is still as bad as it's been for a while.

With the living costs going up (and all the strikes it seems to be causing) it's not going to get any better for a while. I guess I'll just have to sit tight and save up a bigger deposit for now.

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appleton
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RE: Strikes

Post by appleton » Fri May 16, 2008 12:14 am

[quote=Dom]
The only real impact the recent credit crunch and pay disputes have had on me is in the housing market. I'd like to buy my first house, and while the house prices are supposedly going down, so too are the number of mortgages on offer. The interest rates are going up, and so everything is still as bad as it's been for a while.

With the living costs going up (and all the strikes it seems to be causing) it's not going to get any better for a while. I guess I'll just have to sit tight and save up a bigger deposit for now.
[/quote]

The country will have a difficult few years ahead of itself. More people will fall into that line we call the poverty line :(

Food prices on the increase, Strikes on the increase, Petrol prices on the increase somethings gotta give!
"Practical men who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back" - John Maynard Keynes

philbell
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RE: Strikes

Post by philbell » Thu May 22, 2008 11:19 pm

[quote=Dom]
The only real impact the recent credit crunch and pay disputes have had on me is in the housing market. I'd like to buy my first house, and while the house prices are supposedly going down, so too are the number of mortgages on offer. The interest rates are going up, and so everything is still as bad as it's been for a while.

With the living costs going up (and all the strikes it seems to be causing) it's not going to get any better for a while. I guess I'll just have to sit tight and save up a bigger deposit for now.
[/quote]


Dom, I do get where you are coming from but just sit tight for a little while and don't worry too much about the size of your deposit.

The last thing you want to do at the moment is buy your first house. Many many people have stretched themselves to buy overpriced housing when rates have been low. If rates do rise much more there WILL be a housing crash, probably not as great as in the nineties, but it will happen. The last thing you want to do at the moment is get a motgage that you can afford on current rates. Base what you can afford to spend at a rate of 10or 11%. This will reduce the amount you can borrow but will mean that you are borrowing within your means when things turn nasty. There will be a crash to an extent, it is unavoidable, just a question of how big.

Whatever you do DO NOT buy right now unless you can do so by following the above and not putting much more than 5% deposit down otherwise you WILL lose out.

If you look at a property that you feel you should be able to afford, follow the following rule to what it is really worth.

After a 5% deposit (10% absolute max) can you afford the repayments over a 30 year mortgage if the rates are 12%.

If not the property is either overpriced or out of your comfortable reach.

If you are prepared to lose a shed load of money then follow your heart!!

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