Is it possible to benefit in a time of financial hardship for many others? Of course. Is it potentially insensetive and offensive to talk about it? Apparently.
Kim Peterson at MSN's MoneyBlog, along with many commenters, has bashed Elisabeth Eaves at Forbes for her column The Recession is Great. In her article Eaves talks about all the various ways that this recession is perhaps "a purifying fire," "an opportunity for change," and in general, "a good thing."
I happen to agree with Eaves. Yes, many people are suffering and have no money to spare to take advantage of all the good deals abounding. But that doesn't change the fact that, as Eaves says, "if your own income hasn't plummeted, the getting is good."
She also rightly points out that:
- Credit worthy borrowers have access to unbelievably good rates and terms right now.
- Property prices and market rents have plummeted in many places, putting buyers and renters back in the power seat.
- Those in the service industry are serving again (that girl at your favorite shop and the local car salesman are likely far less snooty these days)- and those doing a bad job are no longer able to overcharge.
- There are amazing deals to be had if you are looking to buy a car, electronics, jewelry, women's clothing, or a vacation.
- If you've been laid off, it's a chance to re-evaluate your career path and goals. If not, it's a chance to seize new responsibilities at work and be first in line when raises come back.
- It's easier than ever to gracefully decline spending money on anything from a cousin's out of town wedding to an aquaintence's invite to dinner.
Personally I have benefited from the recession in several ways.
- I finally got that new flat screen HDTV that I've been eyeing for nearly 3 years - complete with all the fixin's, with no interest due for 18 months, and for only 60% of what I was planning to spend.
- A property next to one of my rentals was listed as a short sale, and my offer was accepted. If the deal goes through I'll have an identical property to one I already own, at less than 80% of what I paid a year ago.
- When I went to Vegas earlier this year - and when I go back in July - it is much less crowded, they are giving away many more freebies, and the table minimums are lower.
- I've noticed many more restaurant deals around town - bottomless drinks, extended happy hours, buy one get one free offers, etc. Plus my friends have quit going out as much. So I'm saving a lot of money on dining out and entertainment.
12 comments:
Hi Meg, I sent you an email but never heard back. I would love to read a post from you regarding your property research. You have said a number of times that when buying your current home, you spent up to a year researching. I was just wondering what exactly you researched? Love your blog! Kellie
Hmm... So far, yes.
We rented a new apartment a few months ago, for $200 less than it rented a couple years ago.
That's probably the main benefit, though things are cheaper.
I agree with you (and her) but it seems... tacky to say "This recession is great!" when for many, it is so so NOT.
But, it makes a good and catching article title, which I suppose is the point.
You've also inspired me to start my own blog! Thanks!
http://aussiesaverblog.blogspot.com/
I'd have to agree that I have benefited pretty well from the recession.
The best:
Winter Ski pass - 200 bucks (Last year was 700)
Summer Golf Pass - 350 bucks (Last year was 800)
New Boat: 15k (Bought from a man who won it in a contest, never in the water and new is over 30k)
There are a lot of little things i bought of Craigslist that i always wanted. Nice furniture was great, and i was able to make a home gym quite cheap.
All said, some things I would buy every year that are a lot cheaper, but mostly its having money available to take advantage of the deals (well other peoples misfortunes i guess).
Ihave had a lot more luck selling things on craigslist, when a year ago that local network was practically dead in this area. now lots of people are looking for great deals on used items. Some of my friends have also stopped going out as much and are more willing to have a game or movie night at the house. Plus, I had a huge garage sale, and this was a great year for it. I made well over $300 between a couple of sales.
Yes! My husband and I bought our first home for 14% less than it sold for three years ago, with an interest rate of only 4.8%. This means we can live in an area of town we love, in a home that does not need any renovations or work. Two years ago, this would never have been possible. I also just appreciate what I have more and think less about what I want. I feel more grateful and satisfied, which is a relief and allows me to focus my free time more constructively.
I'm happy to say that since the recession hit, my rent has since decreased, and I'm looking into buying my first home! I started my first job out of college last year, and contributed a large chunk of my paycheck to my 401K... it is doing quite well now :)
@ Kellie - I apologize, my email gets bogged down with so much spam and solicitations, and I don't check it regularly enough. The main thing I researched (and that I would suggest you research) are property values and neighborhood trends in your area.
A couple of books and blogs on landlording will help you get a feel for what management is like and what tax breaks you can take etc, but once you decide to take the plunge the most important thing is what type of property you want to buy. Single family? Condo? Duplex? Multi-family? What neighborhood?
Once you decide that, make friends with realtors, go to open houses, watch prices move, browse listings regularly, and join a local landlording group.
Does it bother you to buy a property at 80% what you bought it a year ago? Does that change anything?
@ LAL - It doesn't bother me, because I still have the place rented out at the same price as when I bought it. The market price doesn't bother me as much as what I can rent it for. If that starts dropping I'll be bothered.
While it may be impolite to discuss the benefits of the recession in front of friends and family that may have been affected but the facts are that the gettin' is good. If you have money to spare, by all means, get out there. Low prices does lead to having buyers in the driver's seat again. There's no insurance things will last much longer so people should take advantage while things are still good.
Jerry
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