The Housing Market: Is It Time to Rent or to Buy?

According to the Trulia latest rent-vs.-buy index, it depends from market to market whether you should buy, or rent a house or condo.

Trulia calculated the price-to-rent ratio for each market.

It shows that in some cities, it is cheaper to rent real estate than to actually own it. Those cities have a lower unemployment rate, or avoided the housing bubble.

Although there are signs that the house prices reached the bottom, Alex Barron expects that the prices of real estate will decline by another 10 to 30 percent. He speculates that when the mortgage rates incease, home prices will nose dive.


Kwinten Derave

http://www.time.com/time/business/article/0,8599,2024445,00.html

Large mortgage deposits are creating a lost generation of homebuyers.

It seems that the rise of mortgage deposits is significantly decreasing the amount of first-time buyers in the housing market. Not long ago, it wasn't a problem to get a 100% mortgage but nowadays a 10% or even a 25% deposit appears to be the minimum. While there were still 120,900 unassisted first-time buyers in 2006, this number dropped in 2009 to a mere 20,200 due to this current trend. According to Professor Steve Wilcox, one solution would be to strengthen regulations to increase the lenders confidence in their loaners, making them willing to decrease their deposits.

Karel Van Cleemput

http://www.guardian.co.uk/money/blog/2010/oct/12/mortgage-deposits-first-time-buyers

Banking and Finance

Saving for economic storms ahead makes perfect sense

People in Britain nowadays save more money and spend less, as the only solution to close the £379bn pensions gap is that everyone retiring from now on till 2051 should save an extra £10,300 every year.
Although Charles Bean, deputy governor of the Bank of England, advices us to get spending, and in that way help stuggling retailers, most people in Britain prefer to hoard some money to protect themselves against higher taxes and unemployment.
According to Urquhart Stewart, they will have to continue to spend but at a lower level than before, and especially concentrate on cutting their debts,which formed the main cause of the economic crisis, to prevent Britain from becoming a stagnant economy.
Due to the huge amount of support to the UK, not the deflation, but the hyperinflation might become the new biggest problem of the Bank of England,which includes that the savings of the British people would become worthless.


http://www.guardian.co.uk/money/2010/oct/06/saving-makes-sense


Iwein Porton

Trust me I'm a banker

Now that we are finally starting to put the crisis behind us and banks are getting back on their feet, it’s time for some self-reflection: Have we learnt from our mistakes? According to the public opinion we didn’t at all, as only 16% of our respondents is satisfied at the action taken against the bankers who failed and on top of that, only 30% said their trust in bankers had restored. The biggest issue arousing this distrust seems to be the astronomic wages these executives still receive (rising up to  £ 8 million) despite previous failures causing imminent bankrupt and a need for a governmental intervention. Even though Truett Tate, Lloyds highest earning director, is confident stating that this governmental rescue was “the best investment the British could have made”, the average taxpayer isn’t that enthusiastic about having to put up for his mistakes and paying his extravagant salary.

Elien Van den Berge

http://www.bbc.co.uk/news/uk-scotland-11512414

Banking and finance

People without web 'missing out' on finance deals

People with internet access can strike a bargain. The ones without are missing some important financial deals. A consumer group proved that online financial deals become cheaper than those in a branch. A lot of people who have access to the internet are not comfortable or able to manage their finances online. People should have more access  to online deals with the support of banks and staff. 

Gilles Stevens

http://www.independent.co.uk/money/spend-save/people-without-web-missing-out-on-finance-deals-2090153.html

The solar energy war, part II

Although it isn't accessible to everyone due to high production costs, solar energy has become very popular the last decade, helping the world take care of its pollution problem.

That's why some start-ups in Silicon Valley decided to reinvent this technology, focusing on low-cost manufacturing.

As lots of venture capital was invested and big factories were being built, the Americans note that the economics of the industry is being transformed by the Chinese, who are getting lots of help of their government.

America feels that the idea, which could boost the economy, is slipping out of its hands, and they are facing another loss against the Chinese counterfeiting market...



Giel-Jan Triest

source: http://www.nytimes.com/2010/10/13/business/energy-environment/13solar.html?_r=1&ref=business

Lending criteria

Applying for a loan brings with it more than it might seem. When giving a loan, banks first look at a range of criteria such as age, income and credit history at which you, the customer, has to meet. Even your postcode and the purpose of the loan matter. If banks find you unsuitable for the loan you demanded, your application will be declined.

Maxime Ossieur

Source

http://www.onlyfinance.com/Loans/What-lending-criteria-is-considered.aspx

The average gross monthly income

In 2008, the average gross monthly income of a fulltime employee in Belgium was €2.936. Our fee is determined by our function, the sector we work in and the geographic position of the company  we work for. Working in Brussels gets you the highest pay, here the average gross monthly income is €3.381. People that have to carry a lot of responsibility, tend to get a higher salary, for example the manager whose average gross monthly income is €7.870.

Annelies Troch

http://netto.tijd.be/geld_en_gezin/carriere/De_10_best_betaalde_beroepen_in_Belgie.8973076-2211.art

New Rules

Due to certain irregularities concerning the balance sheets of big Americain banks three year ago, the ECB (European Central Bank) has constructed new rules to encourage banks to clean their balance sheets. Since the bankruptcy of the business bank Lehman Brothers, the strategy of the ECB was to lend financial means in return for certain assets, now they want to make sure that these assets won’t lose value over the period of the lend. This means that from now on, the ECB will be capable of refusing assets that don’t correspond to the conditions held up by the ECB. The new regulations will become active this weekend.

Nicolas Soenen

http://www.demorgen.be/dm/nl/996/Economie/article/detail/1167682/2010/10/09/Nieuwe-regels-voor-leningen-aan-banken.dhtml

Generation H has come to Britain.

The future for a new generation of people in Britain will imply that they have no chance to buy their own home. Nowadays the preferred  deposit for the British borrowers is about 25%, even though a few years ago they could easily lend their whole home’s value. Therefore the mortgage indemnity guarantee (MIG) that returns the greater part of the mortgages, can take away the lender’s concern in these days of falling house prices. However, a profound screening of the borrower could persuade the lender to reintroduce the 100% mortgages.

Matthias Sterckx

(The Guardian)

Students prepare to earn and learn

Due to rising inflation and tuition fees, more and more British students tend to work part-time in order to fund their studies. The average expenses keep rising, and the students are facing it. It is getting harder for students to find enough financial support, parents are backing off and maintenance loans remain static. Some British employers are even meeting the demand for student work by granting flexible hours that match the academic calendar.

Sonny Selhorst

http://www.guardian.co.uk/

Studying abroad becomes a real opportunity

While tuition fees are higher than ever and even excellent grades aren’t sufficient enough to get a place at a UK university, there might be an interesting solution. It’s almost impossible for a lot of British families to let their children study at a British university because of the extremely high tuition fees. British parents can now get into contact with “A Star Future”, a free service,  to help their children find suitable universities abroad, where they don’t have to pay such high fees.  However,  studying abroad will not be much cheaper as you will have to pay for accommodation and some important extras, but you’ll get an unforgettable experience of  life which is unvaluable.

Source: http://www.guardian.co.uk/money/2010/oct/10/tuition-fees-students-overseas-universities

Niek Thysens

Banking & Finance

Firms continue struggle to access bank loans



Bank of England

 Despite efforts by the UK Government to stimulate bank lending, new survey indicates that over the last year it had become more difficult for the UK Businesses to obtain bank loans. One of the main factors is the importance for banks to put aside large amounts of capital, especially in this critical period. Veteran banker, Dr Josef Ackermann, lately notified that the change in risk weightings cause bad consequences for small and medium-sized businesses. Beside it, companies that obtained bank loans in the past, have noticed little progress in lending margins and arrangement fees.

(http://www.bankingtimes.co.uk/2010/10/12/firms-continue-struggle-to-access-bank-loans/)

Louise Van Isterdael

Too young, too soon?

Teaching your child about money, never too soon?

Children have a tendency to believe that money comes from mom and dad’s  wallet and when mom and dad have run out of cash there is a big machine who magically spouts some cash after pushing a few buttons. It’s important to explain to your child that it is not that easy at all, that money is earned by hard working and you only get to spend what you earn. According to some people the benefits of teaching your child about money early are both immediate and on long term. The sooner they get to deal with money, the sooner they will develop some strong saving habits and on the long term they will be able to make some good investments and avoid accumulating debt.

Lieselot Soens

The Car Loan Merry-Go-Round

Nowadays people consider it as normal to buy their car on loan and walk into the cycle of « the car loan merry-go-round », however there are a lot of other ways to get their vehicle! It’s generally assumed that many people ignore the fact of paying cash, despite of the current loan rates which are considerably high. In addition to that, they aren’t also prepared to give in luxury and buy less expensive cars, so bank rents wouldn’t be needed anymore. Furthermore, car drivers often think in monthly payments which could be disastrous when the car is no longer worth the debits each month!

http://www.forbes.com/2010/10/07/get-rid-car-loans-save-retirement-personal-finance-bogleheads-view-dogu.html?boxes=financechanneltopstories 

Thibaud Tack

The Google Price Index

Google, the search giant, will provide inflation data, which is more up-to-date than other official statistics. The Google Price index (GPI) is a new inflation measure that tracks changes in the price of products and services. Different from the Consumer Price Index (CPI), the GPI will be based on the costs of goods sold online which means that the basket of goods would have a much smaller proportion. As the project isn’t finished yet, the company hasn’t decided whether to publish it. 

Guardian

Pauline Opdebeeck

Get rich while sleeping!

Until the beginning of the credit crisis in 2008, Rabobank had always been offering one of the highest interest rates on savings accounts. Although they didn't suffer as much as the other banks from the credit crisis, they had to lower their interest rates from 4.25% to 1.5%! Now they think the time has come to give their clients what they deserve and that's why they've raised their interest rates to 2.5% again. So everybody, get those socks from under your pillows and start making money, just by sleeping!

David Poissonnier

http://www.rabobank.be/nl/sparen_betalen/spaarrekening/default.aspx

Banking & Finance

Student fees: the answer may lie overseas

In the United Kingdom university costs are hastily increasing and even top grades don’t guarantee a place at a UK University. Therefore, more and more students are forced to study abroad.

Various universities around the world try to attract British students by offering numerous courses taught in English. However it is hard for young students to leave their family and friends for such a long time, they get a unique experience that no amount of money can buy.

Lina Roosendans

http://www.guardian.co.uk/

Foreign exchange: is your money safe?

The first thing to do when you want to know if your exchange firm is liable, is to check if the company has been authorised or registered by the FSA, but for the customers of the Crown Currency Exchange this wasn't enough to warn them for the many risks. Even though the FSA checked if the people who worked there were suitable and if the company held an amount of money that was big enough, nevertheless the collapse of the Crown Currency Exchange has left a lot of people without funds.
Furthermore it is safer to pay with a credit or debit card, so you can ask for a refund if there are any problems, also "the prepaid currency card", that you have to load up online and the funds go on the card immediately, is a very popular solution to make sure that you choose the right exchange company.
Everybody should take advantage of these options to make sure that your exchange firm is to be trusted.

(the guardian)

Paulette Van Hacht

Bank crash taxpayer investment

Many taxpayers earn a lot of money while working hard yet they must give over a half of their income to the state, but would it be better to invest millions in affected banks? In a recent poll published on the internet shows that 64% people did not believe the government could prevent another crisis and about 70% of those said they did not trust Britain’s bankers. Truatt Tate, executive director of Lloyds banking group, suggested British taxpayers should be rejoiced with the opportunity to invest millions in stricken banks as a result of these percentages. Many people, himself included would "love that kind of return on their investment that the taxpayer has made into this bank.".

http://www.bbc.co.uk/news/uk-scotland-11511275

Pieterjan Tilleman

Should we fear a Housing market crash?

Should we fear a Housing market crash?

House prices have slumped in their biggest monthly fall on record,

 wiping away the equivalence of 6000 pounds of the average price of a house. 

Britain’s biggest lender, The Halifax, said in September the average property sold for 162,096 pounds, which fell by 3,6% in August, but overall in the second quarter the fall in house prices was only 0.9% in comparison to the previous quarter-on-quarter falls of between  5% and 6%.

Halifax said an increase in properties on the market, combined with a drop in demand fuelled by economic uncertainty, have forced prices down.

The recent data that were gathered by The Halifax will undoubtedly raise fears of a housing market crash,  

however, it is very important to keep  in mind how volatile housing data can be.

Mathieu  Schrurs

http://www.guardian.co.uk/business/2010/oct/07/housing-crash-house-prices-halifax

Apple is worth more than our entire Belgium stockmarket

Apple, the world leading company in IT-products, has been a sharply growing enterprise since its foundation in 1976, now it even reached a point on which its entire value is bigger than the one of an important European country, Belgium.

By surpassing Microsoft, the former IT-leading enterprise, Apple has become the second most valuable company of the world, with a market value of almost 260 billion dollars they're only inferior to Exxon, a petrochemical giant.
Both the IT-sector and our general Belgium economy have had some tough times, but apparently Steve Jobs, CEO of Apple, made the right choice by continuing to focus on the production of innovating products while our country had no idea how to resolve this crisis.
These findings might offcourse misrepresent the situation a little bit, because it's hard to compare the economy of a coutry and that of a single company, but it says a lot about Apple, and perhaps even more about Belgium ..

Simon Savaete

Bron: Het Nieuwsblad, 2 october 2010

Housing market crash feared

Halifax, part of the state-controlled Lloyds Banking Group, tries to keep the fear for a housing market crash at bay.

Fears of a housing market crash have been raised after average house prices fell by more than 6,000 pounds in September which is probably owing to anxiety about the fragile state of the economy.

Howard Archer, chief UK economist at HIS Global Insight stressed that it’s important to put the date into perspective because the 3.6% fall was a record on the basis of monthly comparisons.

Halifax admitted that the data, which has been a barometer of housing prices since 1983, was a shocker but warned for inconstancy due to rising taxes, falling incomes and the increasing supply of homes on the market.

 

 http://www.guardian.co.uk/business/2010/oct/07/housing-crash-house-prices-halifax

Lennert Thomas