Effect of Recession on RE investment ??

[Miley Tipton]

The main causes of this Recession are

1. Credit crunch – Boom and Bust in credit markets has led to shortage of finance and therefore less investment.

2. Falling house prices – falling house prices are causing lower wealth and consumer spending

3. Loss of confidence – bank collapses, falling stock markets and falling house prices have all changed consumer and business expectations meaning people are more willing to save than spend.


I really like to know your views about effect of Recession on Real Estate Market ??

Always consider free to post.. as your post can explore the knowledge of others...

 

[Lysos]

Those aren't causes - those are effects of the recession.

 

[BibiDimi]

Isn't this a good time to buy, pricing on property going down, but it will not be that way forever, will it?

 

[Mistral4now]

Region?

What geo region are we talking here?

 

[PureFX]

The effect on currency does depend on the geographic region you're in. For instance before the downturn the GBPUSD exchange rate closed on 2.0 - but 2 years on the pound is much weaker. Hence the buying power of UK consumers abroad has weakened.

You might also mention that the downturn has caused a restructuring of political relations. The announcements this morning that Ireland has accepted a rescue package from the EU has potentially large implications for Irish sovereignty - the EU Foreign Ministers are in a position to dictate terms to the Irish. That's almost unprecedented outside of war time.

 

[Miley Tipton]

why are you asking about geo region?
as except two or three countries ... almost most every country aren't come over this situations.

 

[Miley Tipton]

@ Lysos

Thanks for correcting me.... I will check it ...

 

[CSQTownPlanner]

Recessions are periods of time when people become afraid that they will not have enough money to live the way that they are used to living or that a pending recession most certainly means that they will lose the money that they have worked so hard to earn. It is true that for many people a recession brings unfortunate news and some cuts to the job market which could mean the loss of jobs and the stagnation of business growth. But you must remember that although a recession may make these unfortunate events more likely, they are not guaranteed and certainly not everyone will be directly affected. In fact some areas of the market see no effect at all.