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JackTorsed
08-24-2007, 09:03 PM
The largest home loan company in the US is on the verge of bankruptcy. Increased Foreclosures are iminent. How do you think the state of the economy will affect the luxury business of lighting. Aren't you guys who are lighting only worried about collapse? I'm digging in deep with my landscape maintenance work. At least that's steady even in times of recession. What do y'all think?

Chris J
08-24-2007, 10:26 PM
Things were a bit slower, but the times are-a-changin as we speak. As usual, things are hopping once again and I don't expect it to slack up again until after Christmas.
Collapse? As long as there are people who enjoy the finer things in life, there will always be plenty of clients. Increased foreclosures could be a result of people not living within their means and making poor decisions with their money. I would say a lot of my clients don't even have a mortgage payment.

JackTorsed
08-24-2007, 10:28 PM
Things were a bit slower, but the times are-a-changin as we speak. As usual, things are hopping once again and I don't expect it to slack up again until after Christmas.
Collapse? As long as there are people who enjoy the finer things in life, there will always be plenty of clients. Increased foreclosures could be a result of people not living within their means and making poor decisions with their money. I would say a lot of my clients don't even have a mortgage payment.

I would say a lot of my clients don't even have a mortgage payment
lucky you

NightScenes
08-24-2007, 10:33 PM
I would agree with Chris. My clients don't ask about payments. They don't ask about financing. They just write a check. My average project is now about 10K and if they can write a check for that, they are not the ones that are worried about foreclosure.

JackTorsed
08-24-2007, 10:37 PM
I would agree with Chris. My clients don't ask about payments. They don't ask about financing. They just write a check. My average project is now about 10K and if they can write a check for that, they are not the ones that are worried about foreclosure.

You must be making bank then.

David Gretzmier
08-24-2007, 11:27 PM
I will have to say time will tell. my landscape light biz is stuggling to become even part time, and my Christmas light season starts in 3 weeks. I have turned away excess Christmas light work for the past 3 years, so if it slacks a little this year maybe I will just do all I can. we'll see.

maintenanceguy
08-24-2007, 11:30 PM
I would agree with Chris. My clients don't ask about payments. They don't ask about financing. They just write a check. My average project is now about 10K and if they can write a check for that, they are not the ones that are worried about foreclosure.

They may not be worried about forclosure of their own homes but as the loss trickles through the economy it will effect their investments and probably their own businesses.

Whether you are directly invested in morgages or not, there will be less available money floating around. For most of us it may only be a 1 or 2% loss or even less, but it's that last 1 or 2% that's spent on luxury services.

I think we're going to see a tightening of the belt at every income level.

JackTorsed
08-24-2007, 11:32 PM
They may not be worried about forclosure of their own homes but as the loss trickles through the economy it will effect their investments and probably their own businesses.

Whether you are directly invested in morgages or not, there will be less available money floating around. For most of us it may only be a 1 or 2% loss or even less, but it's that last 1 or 2% that's spent on luxury services.

I think we're going to see a tightening of the belt at every income level.

that's what I'm concerned with too.

Eden Lights
08-25-2007, 12:01 AM
Historically high end clients turn to real estate when things are bad. One of my clients has been scooping up homes @ over a million each and plans to make upgrades to them and just sit on them if needed. Any body and everybody has been building 7 figures homes over the past couple of years and the market is getting a much needed correction. Some poor builders are making 5k payments, I wouldn't be able to sleep at night. I like risk with the money that I have, but I couldn't risk money that I had to borrow.

Eden Lights
08-25-2007, 12:04 AM
They may not be worried about forclosure of their own homes but as the loss trickles through the economy it will effect their investments and probably their own businesses.

Whether you are directly invested in morgages or not, there will be less available money floating around. For most of us it may only be a 1 or 2% loss or even less, but it's that last 1 or 2% that's spent on luxury services.

I think we're going to see a tightening of the belt at every income level.

I would agree.

extlights
08-25-2007, 12:29 AM
The problem is that mortgage companies have been just giving out money the last few years. Because it was so easy to obtain a home loan, people were taking everything these mortgage companies were giving without thinking about if they could actually afford it....hence why there have been so many foreclosures.

The good thing for the service industry now is that because home values have dropped, people tend to keep their existing homes because of the bad market and make improvements to them. I've talked to many contractors (in all professions) and they are having a great year. We were slow in the beginning of August, but we always are so that wasn't a concern. We have always managed to better our sales from the year previous since starting this business and so far we are up about 25% in sales this year compared to this time last year.

In the market that we all target, money shouldn't be as much of a concern. If you keep hitting the pavement and concentrate hard on sales within the right demographics, people will buy.

David Gretzmier
08-25-2007, 12:44 AM
biggest problem- variable rate mortgages. over the past 3 years, the Fed has raise rates, 14? 20 times? and many mortgages are ties to those rates. they were trying to curtail inflation, but what starrted happening was mortgage payments started going up, up and up. folks who had a 1400 month payment saw it jump to 1600, then 1800. out of 100 folks, maybe 5 or 10 do not have that extra 400 per month. they get behind, and presto, you're in foreclosure.