Did you know the famous crash of the early 90s was a 12.7% decline from peak to trough? Does not sound a lot does it? Especially when everyone goes on about it so much. Prices fell from £70,247 in May 1989 to £60,965 in July 1995.
The decline from peak to trough today is 22.4%. That’s £199,612 in August 2007 to £154,716 in April 2009. Couple this with the global crisis regarding the flow of capital then you have to say we are in historic times.
EVERYONE will say do you remember the property crash in the late 2000s? the big question is is it going to get any worse? Will this crash be even more memorable?
The funny thing is even though this crash is supposed to be really bad somehow it does not feel that bad. If anything it feels ok. Prices are not spiralling out of reach (even for us investors) and a reasonable number of okay deals are available for everyone to buy.
There are deals out there at a respectable 8-9% yield with a decent cashflow in decent areas. No promise of mega growth but no likelihood of declining much further.
So how has the worst crash EVER since world war 2 felt like? If you got through this you can get through anything! By the way I am not a life coach.
The only way is up.
Posted on: 17th May 2009