tzijlstra Posted October 9, 2016 Author Share Posted October 9, 2016 My bold= Nobody knows how brexit will pan out, lies were told on both sides and we are in unknown territory and even the author Of article 50 says it was never meant to be used= http://www.independent.co.uk/news/uk/politics/brexit-eu-referendum-britain-theresa-may-article-50-not-supposed-meant-to-be-used-trigger-giuliano-a7156656.html Do you not think the EU leaders boasting about making Britain pay for brexit is not harming business confidence? The course is set for brexit, fasten your belts as it will be a bumpy ride and will not get cancelled. Let's look at what we do know - the pound lost around a sixth of its value since the referendum and the outlook remains bearish even now, that is despite Carney pumping billions into the market propping it up. Whether you studied economics or not, that is bad news. It means your housing stock has lost a significant amount of value for example, it also means that it isn't far off that we will see prices for almost everything shoot up, in other words, it is making our already austerity driven economy feel the impact where it hurts most, in our wallets. Link to comment Share on other sites More sharing options...
lizmachin Posted October 9, 2016 Share Posted October 9, 2016 (edited) Whether you studied economics or not, that is bad news. It means your housing stock has lost a significant amount of value for example, it also means that it isn't far off that we will see prices for almost everything shoot up, in other words, it is making our already austerity driven economy feel the impact where it hurts most, in our wallets. I wouldn't get to worried about housing stock. I left the UK for Canada around 7 years ago. I put my flat at Neepsend on the market at £220,000. A year later I'd had no takers and took it off sale. I'm now back in the UK and getting offers of over £350,000 for the property. I also have a 7 year old recipt for gasoline at £1.18 liter. I was rather pleased to find that on returning here it was down to just £1.08. In 2009 my Dollar bought me 60.3 pence. Yesterday it bought me 60.5. Inflation in the UK over the last 12 months was 0.6% which is rather lower than the BoE's taget of 2%. It just shows that you can't base an economic picture on a moment you pick in time. Edited October 9, 2016 by lizmachin Link to comment Share on other sites More sharing options...
tzijlstra Posted October 9, 2016 Author Share Posted October 9, 2016 (edited) I wouldn't get to worried about housing stock. I left the UK for Canada around 7 years ago. I put my flat at Neepsend on the market at £220,000. A year later I'd had no takers and took it off sale. I'm now back in the UK and getting offers of over £350,000 for the property. I also have a 7 year old recipt for gasoline at £1.18 liter. I was rather pleased to find that on returning here it was down to just £1.08. In 2009 my Dollar bought me 60.3 pence. Yesterday it bought me 60.5. Inflation in the UK over the last 12 months was 0.6% which is rather lower than the BoE's taget of 2%. It just shows that you can't base an economic picture on a moment you pick in time. Firstly - a 50% rise in a flat in Neepsend strikes me as extraordinary and not in line with what I've seen in the housing market although it is climbing slowly. You have some luck in that CAD was performing very poorly after the financial crisis compared to the GBP, but had you sold your flat 3-4 months ago you would have had a much better return. Secondly - at its lowest in 2009 the Pound would have bought you 1.38 USD and that was a very brief period of time, for most of the year it was over 1,50. It is now firmly below 1.25 and that doesn't look set to change, so either you got a very poor exchange rate then or a very beneficial one yesterday. Edit: Compared to CAD your rates make sense. Again, that is more to do with the CAD being very poor for a lengthy period of time than anything else. Thirdly - the oil price has bottomed out massively compared to 2009 - even so, the price is set to go up here now due to the fall in the pound. Finally - you're right, a snapshot is rather pointless, except when you get company directors repeatedly warning over the effects of the course set now. Brexit is an extraordinary event and there is no predicting the ultimate outcome, but there is plenty of evidence for a short to medium term shock to the economy here. False optimism is going to hit home hard. Edited October 9, 2016 by tzijlstra Link to comment Share on other sites More sharing options...
lizmachin Posted October 9, 2016 Share Posted October 9, 2016 (edited) Firstly - a 50% rise in a flat in Neepsend strikes me as extraordinary and not in line with what I've seen in the housing market although it is climbing slowly. You have some luck in that CAD was performing very poorly after the financial crisis compared to the GBP, but had you sold your flat 3-4 months ago you would have had a much better return. That's not what the estate agent told me, but then he was an estate agent and not a keyboard expert. But I was getting between £850/£950 per month letting it. So I made nearly £65K by not selling in 2009. If only I'd taken advice. Instead I'm back living in my old flat rent free for the next 10 months and according to the estate agent I should be able to sell next summer for rather more than I can today. Regarding the CAD. I'm surprised by your comment. When I was holidaying in Europe In 2007/2008 I was getting around 1.4 Euros for my Dollar. Last week I was getting 1.45. But I take your point that you shouldn't make judgements because of figures at a moment in time, although you seem to be trying to do exactly that. Edited October 9, 2016 by lizmachin Link to comment Share on other sites More sharing options...
tzijlstra Posted October 9, 2016 Author Share Posted October 9, 2016 That's not what the estate agent told me, but then he was an estate agent and not a keyboard expert. But I was getting between £850/£950 per month letting it. So I made nearly £65K by not selling in 2009. If only I'd taken advice. Instead I'm back living in my old flat rent free for the next 10 months and according to the estate agent I should be able to sell next summer for rather more than I can today. Regarding the CAD. I'm surprised by your comment. When I was holidaying in Europe In 2007/2008 I was getting around 1.4 Euros for my Dollar. Last week I was getting 1.45. But I take your point that you shouldn't make judgements because of figures at a moment in time, although you seem to be trying to do exactly that. Anybody with a bit of information literacy will be able to determine who was correct here. All I know is that our house, that we bought for a similar price to your flat, is no where near 50% more in value. You also changed the boundaries by talking about USD/EUR as opposed to GBP/CAD (USD). Here is some news you might not have got whilst in Canada - Britain doesn't have a Euro. But hey, I take your point, I am a keyboard warrior with significant interests in the Eurozone, what do I know. Link to comment Share on other sites More sharing options...
lizmachin Posted October 9, 2016 Share Posted October 9, 2016 Anybody with a bit of information literacy will be able to determine who was correct here. All I know is that our house, that we bought for a similar price to your flat, is no where near 50% more in value. Perhaps you should have taken better advice before you bought it then. Link to comment Share on other sites More sharing options...
tzijlstra Posted October 9, 2016 Author Share Posted October 9, 2016 Perhaps you should have taken better advice before you bought it then. Perhaps you are talking out of your backside. Could you refer to your apartment on Rightmove please? Recent sales are all below 200K in that area. Keep it up though, I am sure people here would rather believe you. Link to comment Share on other sites More sharing options...
monkey104 Posted October 9, 2016 Share Posted October 9, 2016 Perhaps you should have taken better advice before you bought it then. Please stop trying to make the exit from the EU sound better than it should be. You are taking away the remainers raison d'être. Link to comment Share on other sites More sharing options...
The Joker Posted October 9, 2016 Share Posted October 9, 2016 Please stop trying to make the exit from the EU sound better than it should be. You are taking away the remainers raison d'être. what economic indicators have you seen recently that give you the impression the outlook is rosy ? Please share with us, we'd love to know. Link to comment Share on other sites More sharing options...
Guest Posted October 9, 2016 Share Posted October 9, 2016 Perhaps you are talking out of your backside. Could you refer to your apartment on Rightmove please? Recent sales are all below 200K in that area. Keep it up though, I am sure people here would rather believe you. That particular area is becoming quite "trendy" and is on the up. Its a stonesthrow from the increasingly trendy Kellham Island, and a reasonable walking distance from the Riverside pub and town. Link to comment Share on other sites More sharing options...
Recommended Posts