Singing Pig

PropertyGoal84:

like i said " I agree James especially with the market today" hmm i think you should be a journalist your good at reading between the lines....

thanks ... i know!  you initially said "go for it" ... if they had, those 3 students would have bought at the top of the market ..... based on your advice AT THE TIME!  roll on ... pricess falling, lenders tightening their criteria ... they should be thankful that, in their stated financially precarious position, they didn't take your advice.  negative equity & a coming financial crisis when remortgage time comes .... so, all very well saying "don;t invest now cos the market is stuffed" ... that was never the issue ... it was the lack of cash to deal with the unforeseen ... like a credit crunch and a falling market ....................doh!

lol the pint glass is always half empty... so are you saying that everybody that purchased a property last year made a mistake? not all properties have gone down in value! seems to me that you have bought in the media's brain washing! i bought 5 properties last year and have no regrets in fact I'm glad i did it because lending now is ridiculous and 2 years is plenty of time to wait to remortgage. as im sure your aware. buying an investment property @ £65k which i recommend would still be a very good buy as rentals are £400 minimum with minimal voids in these types of areas.

PropertyGoal84:

lol the pint glass is always half empty... so are you saying that everybody that purchased a property last year made a mistake? not all properties have gone down in value! seems to me that you have bought in the media's brain washing! i bought 5 properties last year and have no regrets in fact I'm glad i did it because lending now is ridiculous and 2 years is plenty of time to wait to remortgage. as im sure your aware. buying an investment property @ £65k which i recommend would still be a very good buy as rentals are £400 minimum with minimal voids in these types of areas.

pg84, are you a complete idiot?  you advised a bunch of students to buy a rental property while not having an income, and borrowing the deposit.  that is crazy advice at the best of times.  "media brain-washing" ... i don't think so.  have you looked outside your ivory tower at the market?  the current market conditions are real, not media spin ... have you actually looked at current mortgage rates, arrangment fees, interest covers?  and that is before even looking at house prices themselves?!

let's say they did spend £100k on a house (not much in manchester, even longsight/levenshulme/rushholme), and borrowed the £15k deposit on a 5-year personal loan. £85k mortgage last year at, say 6%, gives IO payments of £425 pcm.  loan payments are £300pcm (10% interest) (say).  assume yield of 7% (generous!) ... results in a monthly loss of £140 ... before insurance, voids, maintenance etc.  absolutely crazy to encourage that kind of risk-taking by people who have no income or savings.

i am saying that a lot of people who bought props last year made a mistake ..... not everyone, but a lot did.  why?  no consideration of how they might re-mortgage when the fixed rate ends, didn't consider rental yield or rent demand sufficiently, lack of income or capital to support their business.

by the way, you may get a shock in 1-2 years time when you get chipped down on your valuation by the surveyor on re-mortgage, and you need to bring your LTV down from 85% to 75% across your portfolio anyway ..... and the market is dire so you will struggle to sell at a decent price to enable you to offload your props.  have you got £40,50,60.70k cash to do that?  do you earn £100k plus?  maybe you do, but the guys you advised so recklessly don;t, and one void, one bad tenant, one boiler replacement could bankrupt them.

these are the mistakes that a lot of new investors have made ... and the clock is ticking for them.  you are the worst of the lot by advising people with no income or capital to leverage themselves to 100% ... regardless of market conditions. 

it's not what YOU did that i am criticising .. it's what you advised "3 students interested in manchester property investment" to do.

 

PropertyGoal84:

lol the pint glass is always half empty... so are you saying that everybody that purchased a property last year made a mistake? not all properties have gone down in value! seems to me that you have bought in the media's brain washing! i bought 5 properties last year and have no regrets in fact I'm glad i did it because lending now is ridiculous and 2 years is plenty of time to wait to remortgage. as im sure your aware. buying an investment property @ £65k which i recommend would still be a very good buy as rentals are £400 minimum with minimal voids in these types of areas.

pg84, are you a complete idiot?  you advised a bunch of students to buy a rental property while not having an income, and borrowing the deposit.  that is crazy advice at the best of times.  "media brain-washing" ... i don't think so.  have you looked outside your ivory tower at the market?  the current market conditions are real, not media spin ... have you actually looked at current mortgage rates, arrangment fees, interest covers?  and that is before even looking at house prices themselves?!

let's say they did spend £100k on a house (not much in manchester, even longsight/levenshulme/rushholme), and borrowed the £15k deposit on a 5-year personal loan. £85k mortgage last year at, say 6%, gives IO payments of £425 pcm.  loan payments are £300pcm (10% interest) (say).  assume yield of 7% (generous!) ... results in a monthly loss of £140 ... before insurance, voids, maintenance etc.  absolutely crazy to encourage that kind of risk-taking by people who have no income or savings.

i am saying that a lot of people who bought props last year made a mistake ..... not everyone, but a lot did.  why?  no consideration of how they might re-mortgage when the fixed rate ends, didn't consider rental yield or rent demand sufficiently, lack of income or capital to support their business.

by the way, you may get a shock in 1-2 years time when you get chipped down on your valuation by the surveyor on re-mortgage, and you need to bring your LTV down from 85% to 75% across your portfolio anyway ..... and the market is dire so you will struggle to sell at a decent price to enable you to offload your props.  have you got £40,50,60.70k cash to do that?  do you earn £100k plus?  maybe you do, but the guys you advised so recklessly don;t, and one void, one bad tenant, one boiler replacement could bankrupt them.

these are the mistakes that a lot of new investors have made ... and the clock is ticking for them.  you are the worst of the lot by advising people with no income or capital to leverage themselves to 100% ... regardless of market conditions. 

it's not what YOU did that i am criticising .. it's what you advised "3 students interested in manchester property investment" to do.

 

spot on pod spot on  -   i get bored being one of the few who keep saying "you cant join this business and be successful without some money of our own"

 

they dont listen do they ? 

Why do keep taking my words out of context?? i was talking about an investment of £65k do the sums and they will add up "me idiot?" also students aren't on the dole some students have worked out the intricacy and rewards of working . If i was in there situation "then" e.g i would have purchased a property at £65k

Please see below

 http://www.rightmove.co.uk/viewdetails-10076052.rsp?pa_n=1&tr_t=buy

using mortgage express and be happy with a nest egg do you know what the interest repayment between 3 people on that kind property?? £80PCM wow that's alot of money to folk out.... (some students choose to spend more than that amount on beer n vodka) also British gas offer an maintenance insurance if the boiler does blow up........ This conversation was based on last years events and talking about it today is completely irrelevant. I may as well say "hmm i should have put £1000 on Spain to win the cup..." look at my calculations and it would have worked

Purchase £65k Mortgage £250pcm  Rent £400

i like to take a risk now and again and again.

 I'm drawing a line under this as the conversation was based on last years events not this year plus no one knows whats going to happen in 2 years time.

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PG84,

i can;t understand how i am taking your words out of context?  your are advocating 3 students with a pitiful income to form a joint venture ... and borrowing the deposit.  the market conditions are irrelevant ... even in the best conditions your advice was totally reckless.  the property might be cashflow positive, but what happens when one of a million disasters that can happen, actually do?  how would your students without adequate income or capital survive a nightmare tenant who takes months and months to evict?!! 

just graduated, and already made bankrupt .... great! 

most students need their part-time income & grant to pay for their daily living costs ... not investing in property.  there is a time and a place for property investment ... being a student without an income or capital is definitely not it. 

Hi Buzz give me a call might have something you will be interested in

Darren

0161 2364999

www.wsg-uk.net