Property Snake could poison your travel plans
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On the day when the predicted house price crash appears to be materialising in the UK with house prices dropping 2.5% in March 2008, Channel 4 Television screens their new series of Property Ladder, along the lines “How to make a quick buck in the housing market”.
Property Ladder I thought more like Property Snake, where you could lose rather than gain your fortune. Speculating on the property market could now entail slithering down more snakes than fortuitous ascents of ladders.
by zoonie
What about second home owners who may have funded their purchase through re-mortgage of their main residence. They may be forced to sell up as their mortgage costs increase and the value of their investment falls. Cheap access to second homes abroad may disappear as flight ticket prices increase. Airlines may decide to cut routes if demand falls, making it more difficult and expensive to make frequent visits to a holiday home.
Never mind property speculators and those with a second home, all property owners and borrowers could be affected. The Daily Mail states that 60% of UK adults plan sweeping economies in the next 12 moths. The Telegraph reports that three our of four families with incomes over £30,000 per annum plan to cut back on spending this year. This is due to increases in credit, housing, fuel and food prices. Expenditure on travel is an obvious target for trimming the household budget.
So is the Property Snake poisoning your travel plans?
April 9th, 2008 at 5:07 pm
Very interesting article Karen. It remains to be seen how difficult the recession will be - there is no doubt that people are already trimming their budgets. They will cut luxuries such as holidays but hopefully a new US president with better economic sense can help to rectify the situation somewhat.
April 9th, 2008 at 6:19 pm
Thanks for your comment Peter, Not sure how much difference a new US President will make to the economy now things seems to be heading south. I think travel spending is bound to be affected, just hot sure to what extent..
May 30th, 2008 at 10:18 pm
We certainly won’t be buying a second home!! That being said, our home is about to provide a bit of income for us, so I’m glad we have it. We will be taking off in 9 days to ride our bikes from Alaska to Argentina and we’ll be renting out our house. Since the house is paid for, we’ll be able to use that money for living expenses while on the road.
I feel so badly for all the people who are losing their homes. I feel so fortunate to be able to do what we are doing!
http://www.familyonbikes.org
June 1st, 2008 at 10:54 am
Yes the credit crunch is affecting many people.
Renting out your home is a great way to fund your trip or at least to pay the mortgage if you plan a long trip.
September 6th, 2008 at 5:12 am
Hi Karen. Nice article.
And what you say is right - a new US president will not make much of a difference as this is much deeper. The economy and the housing boom are directly related.
And actually, there is not much to worry - what goes around comes around. All these days, prices went up. Let it come down a bit and then it’ll go up again!!
September 6th, 2008 at 12:43 pm
I agree that a new US president won’t make much difference as these are international problems and one country can’t insulate against the effects of what’s happening globally.
Things seem to be getting worse in the UK with the falling house prices, less competition in the mortgage market, the pound dropping in value, and ever increasing energy and food prices with inflation running at 5%. It’s going to be hard to find the disposable income for travel.