It just goes to show that even though the doom and gloom may be prominent news business is just going on as normal.  Yes unemployment is rising but 95% are still employed and will be in 12 months time.  If employment levels fall from 96% to 95% then this is bad but it is not a crisis is it?

We are a strong nation.  It is up to us 95% of us employed to work hard so we CREATE jobs for the other 1% that want to work.  This will obviously happen because we always come through.  We have suffered world wars before so this is nothing in comparison.

So lets not lose sight of what is in front of us.  The reason why I would never ever think of selling my portfolio and only ever increase the size of my portfolio is because:

1. we have the most desired land in the whole world - London is not prime it is super prime.  This means there is a ripple effect where London property prices push up property prices in surrounding areas.  When international billionaires are bidding for our turf we can be assured that the rest of us are okay.
2. we have one of the highest GDP per person in the world - this will never change.  This will always mean our assets will be high in price simply because people in this country can afford it.  Wages do not go down. So as long as our wages are considered high compared to the rest of the world then so will our assets be.
3. Land rights are robust - our land registry is so tight banks are happy to lend £500bn to us.  They only do that because their money is safe because they can easily monetise their security if you default.  So if you own a property no one can take it off you.  Other countries are not so robust as people are finding out the hard way from owning nice holiday homes in Europe and afar.
4. Property will be the new pension - I use it as a pension, I am sure you do if you own some property and there will be a shift by pension companies to invest more in residential property as it is low risk.  They have had their fingers burnt by the stock market and there is only so much burning you can take!

So if you still have a job, have money in the bank and want more than you are probably like the rest of us - just doing okay.

The press can report all the doom and gloom they like but I think the tide has turned......

Lets just get on with the job of building a secure financial future for ALL of us.

Ajay

Posted on: 6th Feb 2009

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