Why was recovery so slow after the 2008 economic crisis, and why should 2020 be different?
The collapse of 2008 happened because there were serious problems in the world’s economies and the property bubble burst; credit far out-valued the properties that were supposed to have guaranteed inflated loans, banks were exposed and collapsed, and governments were reluctant / unable / slow to react. They were paralysed and in shock. In 2008, there was nothing in place to support commerce and industry. It was each man for himself. Businesses and economies failed worldwide.
In 2020 economies were picking up when the virus hit, and the world, economically, was in a good place. We are part of an international real estate think-tank, with Australia, the UK, the USA, France and South Africa involved. Every one of these countries, except South Africa for specific reasons, was experiencing positive growth and a strong real estate market. It was not a mistake made by bad policies that caused what we are going through now, but rather, a “freak of nature”.
Governments worldwide were quick to realise that there was a problem to deal with and immediately started to put measures in place to help businesses, large and small. Trillions of dollars have been poured in. Salaries subsidised, financial concessions and debt-forgiveness programmes were instantly put in place, tax relief, reductions in social charges and allowances left and right with businesses falling over themselves to help each other with delayed payment schemes and much more. There is good will and a feeling of togetherness, and substantial government support to keep businesses alive.
Governments and businesses alike have realised that this a short term problem; it has nothing to do with poor fundamentals in the world’s economies, and therefore the bounce-back is expected to be rapid.
That’s how 2008 and 2020 are different, very very different.
As we alluded to in our most recent blog post, the Rennaissance was born after the Black Plague.
Contact us directly for any of your property purchase or sale questions in the South of France.
Tel: +33 (0)4 92 59 25 93
Email: cannes@fineandcountry.com
* With over 18 years of experience, we offer an in house turn-key property solution on the French Riviera and into Provence, including a full buyers search service, accompaniment through the entire purchase process, property management after purchase, and rentals. Additionally, we have established trusted partnerships with English speaking mortgage brokers, currency experts, lawyers, financial advisors, banks and more; all of whom we would be delighted to introduce you to, to facilitate your property purchase in the South of France.
We look after your property investment on the Cote d’Azur, as if it were our own, and if you want to hear it straight from the horse’s mouth, this is what Kashya H. had to say: “Working with the Fine & Country Cannes office was an absolute pleasure. I had designated a weekend to look at property in the South of France, feeling confident I was ready to make a purchase. Chris and Alice worked diligently as a team to ensure the best service possible. We looked at more than twenty properties over three days, in order to find a unique property that would best suit my taste. Although I had set out looking for an ocean view property, I soon came to realise the real value was in the hills. They both had a broad knowledge of the surrounding area and local village life, giving me a great perspective on valuation. After choosing my dream property, they worked diligently through the closing process, ensuring it was a seamless transition. My closing took place within six weeks of my offer and was an efficient and fluid process. I would highly recommend Fine & Country and thoroughly enjoyed the entire process. “(March 2020)