EDDIE

Spoke to an economics student (PHD). Said looks likely there may be a property crash and recession. although, things casn happen to preven this, cut in interest rates, drop in oil prices. In 2001, looked like a recession was occuring, but cuts in interest rates led to a boom based on debt. I believe if there is no property crash now somewhere in the future it will happen, level of personal debt and government borrowing unsustainable. i also welcome a property crash, in Liverpool rental prices absurd, most liverpudlians are on low incomes. City of Culture has not changed employment in Liverpool.

Use to Live in Kensington, plenty of houses for sale but not selling. Have a friend who bought a number of flats in liverpool town centre around 2005. Bought them before they were built - sold them in 2006 at a loss. He did consider renting them out, but the rent only covered the interest payments on the loan. Too many flats, not enough renters. When the city of culture building work finishes, a lot of flats will become empty. Some builders are renting these flats.

i believe once 2008 has gone property prices will drop. looking to buy not yet, will wait a few years and save a greater deposit. Know someone in Liverpool bought a few flats, was told hen would make a profit when sold. In fact, has sold them with a loss of £5000 each. did think of renting them, but the rent he would receive was not enough to cover the mortgage payments. Also, lots of property to rent in Liverpool, but the rents are to high, most people only earn about £15000 a year.

Will prices of house in Liverpool go down after 2008 City of Culture? Any thoughts or views. What was the experience of Glasgow?