eurozone collapse and me

Stretch said:
Magic beans.

I have a similar predicament. I'm going property. Houses may not appreciate at the rate they once did but prices are attractive and rental returns are better than anything you'd get from a bond. They can't disappear in a puff of financial meltdown and if/when the economy dose recover it should make a tidy profit. The worst case scenario is I'm not short of a place to rest my head at night
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County said:
Long Term?

Bricks and Mortar
Land

Done :)
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Yeah, I would do but I ahve a very uncertain future where I will settle. moving to the US in a few weeks but may only be based in that city for 1 or 2 years tops. then I may relocate with the US or move back to Switzerland.

Housing is good but you need a bit of stability to gain. Saying that, where I will be in the US I can buy a house for less than the deposit in Switzerland (you on't get anything for less than 1million CHF) so it becoems a realistic option.
 
D.P. said:
Yeah, I would do but I ahve a very uncertain future where I will settle. moving to the US in a few weeks but may only be based in that city for 1 or 2 years tops. then I may relocate with the US or move back to Switzerland.

Housing is good but you need a bit of stability to gain. Saying that, where I will be in the US I can buy a house for less than the deposit in Switzerland (you on't get anything for less than 1million CHF) so it becoems a realistic option.
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A mate has just moved to Texas to buy cheap housing and rent out. The market their is on its ar** and the rental market is sought after!

The house he can buy are around $25,000 and he can rent out for around $500pcm. No one can get mortgages over there.

Cheers :)
 
Bunka said:
Exactly what I'm doing. Getting in there while interest rates are so low and fixing for 5 years.
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Bang on there mate.

I overpaying all mortgages where i can. Housing and Land in our country will be at a premium within 10/20 years. Its already desperate.

We live on an island, we are all living longer, we all need housing. Supply and demand :p

Forget Savings accounts, bonds, shares....

All IMO BTW
 
Maybe once I'm settled in the US I will look into things in more detail. I wuld certainly be able to give a reasonable deposit and be in a financial situation to pay a mortgage so makes sense. But I need to research the housing situation in the US a little more. Someone told me the housing prices are still over valued where I will be moving to so it wont be a smart investment if thats the case.
 
D.P. said:
Maybe once I'm settled in the US I will look into things in more detail. I wuld certainly be able to give a reasonable deposit and be in a financial situation to pay a mortgage so makes sense. But I need to research the housing situation in the US a little more. Someone told me the housing prices are still over valued where I will be moving to so it wont be a smart investment if thats the case.
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If your thinking about property my advice would be only invest where you understand the market. I would never consider buying outside of areas I've lived in for a few years. I would also only buy in places that are historically prosperous and aren't over reliant on large employers.
 
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County said:
Bang on there mate.

I overpaying all mortgages where i can. Housing and Land in our country will be at a premium within 10/20 years. Its already desperate.

We live on an island, we are all living longer, we all need housing. Supply and demand :p

Forget Savings accounts, bonds, shares....

All IMO BTW
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What's to stop the then government making the queen/king use their power to seize any piece of land they like... then build affordable housing on it?

(Something along the lines of Johnny English powers - I have no idea if this power actually exists).
 
[TW]Fox;20701847 said:
No they didn't. Price rises are generally atypical for a recession - recessions hit demand, hard, and the laws of supply and demand dictate that when there is a negative demand shock, price will fall.

:
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Price of food massively raised in 2007 and 2008.
 
Glaucus said:
Price of food massively raised in 2007 and 2008.
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Has it though? You can still get ultra-cheap chicken, free range is significantly cheaper than it was, beef still about the same, milk is still about the same price, bread is about the same, fruit and vegetables are still the same...

I remember the hikes in food prices were before 2007.
 
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That's world food prices, driven by a number of other global crises like floods, earthquakes, conflicts and overpopulation, not a recession. Same goes for rice.

Milk was ~40p a pint when I was at university (10 years ago) and it's something like 49p a pint now. It really hasn't gone up that much.
 
That's uk milk prices, also as we import a most food, world food prices matter.
And it really has, do you not remember the food price threads which seem to crop up every week back then.

Retail price hit 40p a litre in 2008 a record
http://www.mirror.co.uk/news/top-stories/2008/06/09/price-of-milk-rises-again-115875-20600710/
I'm pretty sure you were at uni before 2008, it's easy to forget such rises, when you buy it every week.

Bread is another example of huge price rises.
 
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[TW]Fox;20701847 said:
No they didn't. Price rises are generally atypical for a recession - recessions hit demand, hard, and the laws of supply and demand dictate that when there is a negative demand shock, price will fall.

Is there a reason why you are convinced the opposite happened, and what is your economic rationale for this opinion? You've basically completely contradicted what actually happened, its almost as if you just guessed :confused:
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Fox - you are correct about the recession but the price of some foods (mainly rice) did rise during the recession. However, the reasons were due to harvest failures which led to a shortage of supply therefore demand outstripped supply. This is why the price of rice rose during the last recession.

Source: http://news.bbc.co.uk/1/hi/world/south_asia/7324596.stm
 
Jono said:
What's to stop the then government making the queen/king use their power to seize any piece of land they like... then build affordable housing on it?

(Something along the lines of Johnny English powers - I have no idea if this power actually exists).
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Thats right mate. You believe that and leave the bricks and mortar to me :D
 
So lack of credit, putting companies out of business, leading to reduced quantity of products. Couldn't ever increase the price and isn't cause by recession.
 
Glaucus said:
So lack of credit, putting companies out of business, leading to reduced quantity of products. Couldn't ever increase the price and isn't cause by recession.
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High food and oil prices had taken hold before the recession and arguably contributed to it.

Google supply and demand. It will help explain it a bit more for you.

Generally recessions do not cause high prices.
 
I know about supply and demand. I also know their was many factors. Oil prices, corn prices and bio fuels.

But staple food stuff does not really decrease in a recession. But production can, due to failing company's. Low supply, high deman pushes prices up.

Why when countries go bankrupt, do food prices skyrocket and it takes a truck load of money to by food. Like we've seen many times. Everything is interlinked and when the funding fails, prices are affected. Essential and non essential products are affected differently.
The value of the currency falls, which means it costs more to import raw ingredients, which pushes up the cost. Unless its a global event and the countries we import from also fall.
 
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