It’s Friday. It’s the start of a bank holiday in the UK, so it’s time to look at some of the positive aspects of the credit crunch. It can’t be all bad news can it?
House prices are going down
Yes they are, the first annual fall since the mid 1990’s, but is that all bad? Lets look at the positive side of it:
House prices have risen year on year for the last ten years so there should be room for a little trimming of prices now.
If your house is falling in value, then so is everyone else’s. If you are looking to move up the property ladder then the fall in your house price is less than the fall in price of the more expensive house, assuming that the percentage falls are the same. The more expensive house that you’ve been longing for has become more affordable.
First time buyers might be able to afford to by a home now and that could stimulate some interest in the property market, albeit at lower price levels.
Quality used cars are real bargains now
In an interesting article, James May of Top Gear fame explains that the price of quality cars on the used market has plummeted. You can buy a 2007 Range Rover Vogue for half its new price apparently, and other top marques are going for a song too.
You probably can’t afford to fill them up with fuel, or pay the congestion charge if you live in London. Oh dear I’m slipping into negativity again, time to move on…
The dollar has fallen in value
America’s recent financial problems have been reflected in a weak dollar. This makes holidays in the USA very good value, and has kept many imported goods at low prices. The $USD is strengthening again, given more positive news about the American economy so take advantage of the exchange rate while you can.
Whilst we are being positive, the Euro has also weakened recently, making European holidays slightly more affordable too.
High street bargains
Consumer spending has been hit by the credit crunch forcing retailers to reduce their prices. Now is the time to get fantastic deals and discounts on almost anything you want, but please don’t borrow to buy it.
I know that there are big downsides to every point I have raised here, but lets focus on some positive aspects, if just for today.