The Property Adviser: September 2008

08 September 2008

Don’t let the media talk you into recession!

In the September 2008 edition of “911 & Porsche World” magazine, Henry Firman - a Porsche trader based near London - wrote a column about his experience of the credit crunch. He blamed the media for being “hell-bent on taking us into a recession, digging out stories that fall into the ‘look how bad things have got’ camp while, at the same time, ignoring the good news.”
Henry’s business (setup in the mid 90s) doesn’t seem to be affected too badly by the existing economic situation (at least for the moment), as he continues to sell approximately one used Porsche per day.

In order to take advantage of the economic downturn, Henry described how he recently went to Bicester Outlet Shopping Centre one Sunday afternoon, expecting to have the building to himself. On arrival, the place was so busy that it took him ten minutes to find a parking space. And his shopping experience wasn’t what he initially anticipated, given the quantity of people buying expensive labelled clothes. With a note of cynicism, Henry commented: “I didn’t see too many reporters interviewing people at Bicester Shopping Village.”

Henry’s column also described his experience of buying a little place on the South Coast and how he “felt as though he was committing a criminal act, given current media sentiment.” Given the ‘credit crunch’, Henry assumed he wouldn’t be able to get a mortgage for his new flat. However, he was pleasantly surprised to obtain a better deal through a high-street lender than the one he currently has on his main residence, which he “got after much hunting around several years ago?” Henry noted: “Yet, the media reports that banks have run out of cash”.

Through Chez-Vous HomeSearch we continue to meet mortgage brokers who are still able to provide a variety of competitive products. They have recently seen notable signs of an improvement in the mortgage market, something that has been overlooked as bad news travels quicker than good news. The most obvious sign is an improvement in rates, several top lenders having cut them twice in the past month or so.

As a successful sports car trader, Henry Firman naturally deals with a specific section of the market. But what is certain is that much of the media is obsessively focusing on blanket doom & gloom across the board. Unfortunately negativity sells but it has a spiral effect on people, wrapping them in fear instead of looking for opportunities in these current challenging times.