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It will be renters who will be hit - thus proving yet again rhe value of “owning” a house - banks far more on the hook rhan landlords who need regular income.
Any repos will probably be from landlords who can’t rent out property
Luxury bedsits over kebab shops in Brum will continue to enjoy safe heaven status
All IT people should invest in the foreign body shop companies like InfoSys. It gives a nice hedge to income. All the clients outsource and your shares rocket and that's your income for the year sorted. Everyone onshores and terminates their support contracts, local demand rockets and that's your contract income sorted.
Infact, come the next dip I'm buying a basket of outsourcing company shares.....
housing market will continue to be propped up in one way or another by the gov.
if they continue to stay in control of the supply, you can't do anything about it. they won't just rent to anyone below the price point and rather keep them empty.
Maybe they'll just allow for people on housing benefits to fill up the available units.
It is the way that the establishment gives entitlement to their preferred category in society.
It is the way that the establishment gives entitlement to their preferred category in society.
The government doesn't want a housing crash because the value of property is what makes the general populace feel 'wealthy'. When we feel wealthy we are more inclined to spend money which in turn keeps the economy moving forward.
A housing crash (not a correction but a crash) might in theory help those who want to get on the ladder but would actually have such a big impact on the economy that you'd still lose out as jobs are lost etc.
As for your "preferred category in society" comment, you really do need to lose that chip mate. I came from a poor family in a very deprived area. I managed to work my way up to where I am now. I didn't have an executive house or 5 series BMW in my twenties, instead in mid twenties I had a little flat in an 'ok' area and drove a clapped out old escort. I was paying over 8% interest on my mortgage and had no money at the end of each month - didn't go out very often, didn't have holidays and barely scrapped by. But, it's what you need to do sometimes to get on.
Stop feeling like the world owes you a living and stop feeling jealous of those who have more than you; there will always be someone more wealthy than you! Instead, get your head down, do those sh1tty jobs if you need to, build up your CV, build relationships and success will come.
All IT people should invest in the foreign body shop companies like InfoSys. It gives a nice hedge to income. All the clients outsource and your shares rocket and that's your income for the year sorted. Everyone onshores and terminates their support contracts, local demand rockets and that's your contract income sorted.
Infact, come the next dip I'm buying a basket of outsourcing company shares.....
I'm not so convinced about the long term future for Indian outsourcers. You would think that as living standards rise in India, the cost arbitrage advantage will erode. According to the latest Deloitte Global Outsourcing survey, cost isn't even in the top 5 reasons to outsource (although this was pre-COVID). Innovation, agility, speed to market etc are more important for boards now.
I've heard some good things about outsourcing in Eastern Europe and other countries are emerging like Vietnam.
Obviously, the Indian firms have scale on their side but I wonder if in 10-15 years time, there will be a few other companies near the top of the tree? There are a few scenarios. Would/could an Amazon or Google enter professional services and disrupt the market? More large companies now run their own giant 'internal IT' hubs in India. Walmart have something like 6000 plus staff at their Walmart Labs.
In the long run, over-priced housing leads to weaker productivity growth and an inefficient allocation of capital, so cheaper housing makes more sense, economically. However, election cycles favour short-term booms via demand-led policies, like Help To Buy.
However, no amount of gov't intervention can offset the coming recession. Expensive housing is largely supported by high rates of employment and cheap borrowing, but there is a significant unemployment crisis coming and borrowing is already becoming much tighter for first time buyers in anticipation (there are very few 5% deals now and other policy shifts are incoming, such as restrictions on lending from parents).
Prices are clearly going down in the medium-term. In the short-term, there's obviously a lot of noise from prices initially declining rapidly when zero purchases were possible to infinity price increases as all purchases suddenly became possible. Remember, the employment recession has barely begun.
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