The Credit Crunch to do with property?
It was going to happen at some point. In the UK, the property market has soared over the past 1 1/2 to 2 years and every man, dog and hamster with money has been trying to invest in property. Some of which have made a loss and some have gone on to make millions from property development.
The media then got hold of a story about the property prices levelling off and then starting to fall, now of course this is only happening in various places around the country but once it starts is it going to stop? No one knows as yet, I personally haven’t yet invested in property and would need some serious talking round to even start thinking about it. It is such an un-steady environment to be in at the moment. Even though I have not invested, this doesn’t mean that I don’t know anything about it. My father is an independent mortgage advisor and thanks to him I take on a lot of information on-board. His advice is that property is still worth investing in due to you having something at the end of it, there is always going to be that roof over your head.
Theory behind the credit crunch.
Credit has ALWAYS been around, it always will be. The one thing that has been blown in to such a furore is property. Lending went through the roof and the people who were doing the lending obviously lost track of what was being loaned and where. Mortgages were being given at crazy rates to people who couldn’t really afford them. Credit and debt was being passed from country to country to anyone who wanted a piece of it.
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