Becoming a separate state from Russia, and enjoying its reputation as Europe's number one stag destination really was not enough for Latvia. Just 2 years back it enjoyed the one of the highest growths in wage growth, house prices and inflation. One year on, how different the story is.
The stag do's are no longer coming, and house prices have crashed by almost 60%. From growth of 11% p.a., GDP is now declining at a rate of 4% p.a. Housing in particular is dropping at the fastest rate of any country in the world, at a staggering 24% in the last 3 months. So don't feel too sorry for yourself, the Latvians are having it much worse than we are!
But could such negative sentiment affect us in here in blighty?
I am not one to dwell on the bad news out there, but my view is rather than sink your head in the sand, be abreast of the main issues and then make informed decisions.
If you want to learn just how much your home or investment property has dropped in value then check out http://www.propertysnake.co.uk/ - just type in your postcode and you will have a better idea of how much poorer you really are!
Then to find informed opinions on the UK housing market, check out http://www.housepricecrash.co.uk/ again, perhaps not what you may want to see, but what is really happening in the world. A great information sharing website.
Today's pledge by the government to allow interest payment holidays on mortgages for those that maybe struggling with their mortgages will have minimal effect. Not to get on my high horse, but wasn't it this government that got the economy in this mess in the first place? In summary, whether you live in London or Latvia, the economy sucks, so forget about it for a few days, have a few cocktails and go enjoy life, i am.
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