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How Was The End Of The Boom And Beginning Of The Bust For You?

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It's 2008. This was my 2nd year contracting in London. Work was plentiful, money was flooding the financial services where I worked. I had 2 months salary saved in the bank as my holiday fund and I was spending almost I earned. I lived in a nice part of Kensington. We had had more than 10yrs of continual boom and there was no sign of it ending. The general thinking at the time was that we were in a new economic paradigm and the worst case scenario was that growth may plateau for a few years. The only negatives for me were property prices. There was almost no talk of prices falling in the media so I resigned myself to accepting there was a 50/50 chance I would forever rent. I would only every buy in the unlikely event my salary tripled or house prices halved. I was happy renting until then.

In America prices began to fall, Lehman’s collapsed and house prices not only sank but dragged the entire world economy with it. Sensing trouble ahead I moved out to a cheaper part of London, cut my spending and increased my saving. A few months later the recession came knocking on my door. My contract at work expired and I was released. Whereas I got an average of 4 agency job offers a day, I had nothing for almost 6 months in 2009. My meagre saving were wiped out pretty fast and for the first time in my life I had to sign on and claim housing benefit to get by. I was by no means in the worst case scenario. Other friends and colleagues with debts were faring even worse.

Things picked up in 2010 where I bagged a very decent role with my last company's competitors. I am still spending considerably less and saving considerably more that the past, my rent and other expenditure was cut to the bone in the lean times and now disciplined me into saving the vast majority of my take home pay over the last year.

I found the recession changed the job market considerably. I was offered work that previously my managers had done but at my 'junior' salary so that's equipped me with valuable experience and was able to then capitalise on this with next employer (I do about 3-4 contract per year) and my pay is higher than it used to be. Some of this has got to do with my better experience but I am seeing wage inflation creeping into the contract market. Im guessing its different for everyone. The woman I trained up to do the last job I left had 20yrs more experience than me, had worked two levels higher up in her last job and had in effect taken a 50% pay cut to do the job i used to do so she's clearly had to take a big step back in her career.

Once I accepted the 'new normal', made adjustments to my finances and career things have really worked out well for me. So the question is, what has been your experience of the last 3yrs and how has it changed your career, finances and outlook?

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Sold big house to buy smaller house in 2007 - No mortgage for me

Took redundancy in 2008 - Six figure sum

I work part-time managing websites, wife works part-time selling books

Tax credits boost our income to 15k tax free and that's more than we need.

All in all, a doddle.

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I used to be in to flash cars, flash clothes, wanting to consume and being seen to do so. When I first bought a house, it was a struggle. I used to wander around John Lewis eyeing all the consumer items I would buy when I could afford it.

Now, I couldn't give a damn. Every cell in my body and mind screams at me: become secure. Become independent. Try to be as unaffected by mass-hysteria as possible. Don't buy tat you don't need. Don't worry about what others think.

Funnily enough, I have a better quality of life now than I ever dreamed of. I might do some work tomorrow. Or I might go paragliding. Not decided yet.

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It's 2008. This was my 2nd year contracting in London. Work was plentiful, money was flooding the financial services where I worked. I had 2 months salary saved in the bank as my holiday fund and I was spending almost I earned. I lived in a nice part of Kensington. We had had more than 10yrs of continual boom and there was no sign of it ending. The general thinking at the time was that we were in a new economic paradigm and the worst case scenario was that growth may plateau for a few years. The only negatives for me were property prices. There was almost no talk of prices falling in the media so I resigned myself to accepting there was a 50/50 chance I would forever rent. I would only every buy in the unlikely event my salary tripled or house prices halved. I was happy renting until then.

In America prices began to fall, Lehman’s collapsed and house prices not only sank but dragged the entire world economy with it. Sensing trouble ahead I moved out to a cheaper part of London, cut my spending and increased my saving. A few months later the recession came knocking on my door. My contract at work expired and I was released. Whereas I got an average of 4 agency job offers a day, I had nothing for almost 6 months in 2009. My meagre saving were wiped out pretty fast and for the first time in my life I had to sign on and claim housing benefit to get by. I was by no means in the worst case scenario. Other friends and colleagues with debts were faring even worse.

Things picked up in 2010 where I bagged a very decent role with my last company's competitors. I am still spending considerably less and saving considerably more that the past, my rent and other expenditure was cut to the bone in the lean times and now disciplined me into saving the vast majority of my take home pay over the last year.

I found the recession changed the job market considerably. I was offered work that previously my managers had done but at my 'junior' salary so that's equipped me with valuable experience and was able to then capitalise on this with next employer (I do about 3-4 contract per year) and my pay is higher than it used to be. Some of this has got to do with my better experience but I am seeing wage inflation creeping into the contract market. Im guessing its different for everyone. The woman I trained up to do the last job I left had 20yrs more experience than me, had worked two levels higher up in her last job and had in effect taken a 50% pay cut to do the job i used to do so she's clearly had to take a big step back in her career.

Once I accepted the 'new normal', made adjustments to my finances and career things have really worked out well for me. So the question is, what has been your experience of the last 3yrs and how has it changed your career, finances and outlook?

I feel richer, recession has worked in my favour as has my general attitude to debt, cash is king.

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Wasn't good, it was always a promise of endure a bit longer and the jam will come. It never did, then outsource cut the industry wages in a big way...

A lot of people in my work places seemed either content or resigned to renting forever. The content ones owned already and were happy their homes were going up massively in value.

Today much older I consider money only as a tool and rather than hoard it or chase for ever increasing amounts simply care a whole lot less these days deciding to focus on me a lot more and enjoy myself. Quite simply I can't take it with me and I only live once. My 20s were all career career career, its going to become good soon.... and I lost most of those years.

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I feel richer, recession has worked in my favour as has my general attitude to debt, cash is king.

I'm very glad I'm renting and I have no mortgage or debts to worry about. I used to feel that I was being left behind by the ones who had bought into the ladder. I didn't want to buy in at the riduculously high prices, but they all seemed to be getting rich on it. Property Ladder especially made this seem to be so.

Now, I will be happy to rent for the rest of my life, if it comes to that. Better than being a debt slave and being tied to a shoe-box. :)

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Sold our house to downsize 4 years ago as the kids had flown the nest, done the one we now have and made it as big as the sold one, albeit gone from a detached to semi so quite happy with that decision.

Banked around 200k after paying everything off also took early retirement at 54 banking another decent wedge and took a pension of around 15 k which we could just about live on but do a couple of days work a week odd jobs etc , this is now drying up as the customers i have do more for themselves now as money becomes tighter, just chatting to the wife about taking money from our invested pot to compliment our needed income as we are now spending more on holidays /cruises not to forget the everyday cost of living inflation.

No regrets though all in all, we lost both our remaining parents this year which woke us both up to doing what you can when you can.

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I'm 51, I used to drive a truck, I'm not working now. I had 15 good years and was lucky enough to get my money out of the house in 2007.

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Had steady employment with slowly increasing good pay. Was consumed by bearishness and cashed in all my investments, waiting for doom. Joined this site in, let's see, May 2009. By autumn 2009 I realised what a mistake that was and began to learn a little bit more about what was going on in the world around me. Got out of cash gradually from Oct 09 onwards. Made a small pile of £ into a larger pile of £. Continuing to work in a well-paying job with the aim of buying a damn house and semi-retiring in a decreasing number of years.

Helped very much by having a relatively cheap life so freeing up much disposable income to do as I like. Quite frankly, I do not see much of a nominal HPC happening anytime soon.

Edit: Didn't mean to say joining HPC was a mistake. This forum helped to set me on a path of learning, but consuming myself with bearishness was the mistake, which I think some others on this forum make.

Also, recently chatted with a friend in the same professional work, same seniority, same age and roughly same pay (I think he is paid more). He is one of the so-called sheeple, bought house in 06-07, did it up with savings cash, buys tat. Did not see the crisis coming, but then again, does not care as it does not affect him. Currently the house is valued at the initial purchase price, despite having spent lots of money turning it from a dump into quite a nice house. Zero savings or other investments, but great job security / reemployment prospects. Although I could now just buy his house outright, and he will be paying a mortgage for a good few years yet, we are both rather contented within our very different lives.

Some days I wish I was a contented person within my little bubble with no concept of world outside of work, gym, television, pub, friends & family.

Edited by Cash with Nowhere to Go

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Salary chaneged slightly , up and down with ny fee income,although I have rekatively secure income fir the next 12 months. Str in 2008. The house I sold I brought in 2006, made some money , orinigally put down 9k deposit. Now have 70k ish from str and savings. Brought a nice car for me and misses not extravagant but 7k cash.

On balance I feel richer but I also feel the inflation. We tried to huy back in a few times since but one thing and another meant it didn't happen. We will be buying back in when we find something at the right price to us.

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Lost a well paid job at the end of the 80's boom , and the crash happened just after then earn't sh-t money as the crash happened

This time around was sure that it would happen the figures just did not stack up and they still don't .

Lost well paid job in 2006 and thought OH here we go again you always lose the well paid job just before the sh-t hit's the fan.

Have been preaching the crash since about 2004 , thought it would happen in 2007 when NR went belly up was sure it would in 2008 when LB went belly up.

Beleive that we have just delayed the inevertable and am sure it is happening now . NO WAY OUT OF THE DEBT !!!

Myself sold up in 2007 rented and then bought small place outright , some savings in the bank that I have to dip into as I earn very little to what I did earn.

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I used to be in to flash cars, flash clothes, wanting to consume and being seen to do so. When I first bought a house, it was a struggle. I used to wander around John Lewis eyeing all the consumer items I would buy when I could afford it.

Now, I couldn't give a damn. Every cell in my body and mind screams at me: become secure. Become independent. Try to be as unaffected by mass-hysteria as possible. Don't buy tat you don't need. Don't worry about what others think.

Funnily enough, I have a better quality of life now than I ever dreamed of. I might do some work tomorrow. Or I might go paragliding. Not decided yet.

+1

Address please .... so I can come round and give you a good kicking :D

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+1

Address please .... so I can come round and give you a good kicking :D

If it's any consolation, I am going to be working today! Got too much to do... deffo gonna fly this week though. :ph34r:

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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