Monday, Apr 21, 2008
What a naughty boy
CityWire: First vulture fund circles home repossession market
About £100 million in City funding is being sought to back the launch of the UK’s first vulture fund to specialise in repossessed residential property.
Property group Assetz is negotiating with property fund managers to back the scheme, and was sourcing repossessed properties at a rate of around 200 a month through bridging finance specialists, private clients and other agencies, said chief executive Stuart Law.
Distressed sub-prime sellers unable to re-finance were emerging across all property types he said, with the typical purchasing price around 15% to 20% below recent market value.
Posted by little professor @ 05:33 PM (1299 views) Add Comment
18 Comments
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1. uncle tom said...
If they start buying now that vulture will morph into a sick parrot..
..if not a dead one!
- Property python, anyone?
2. last_days_of_disco said...
My gosh, the blatant hypocrisy of Staurt Law is beyond all bounds.
Surely there must be some for this guy to be publicly pilloried?
He talked the market up all this time, now I am sure in his thinking its all these doom and gloom mongers that have spoiled the party and he is coming to the rescue of the poor innocent victims.
Its just breath taking!
3. Orwell said...
But house prices only go up Stuart?
4. plato said...
I think he should buy,buy,buy as much as possible, as soon as possible, before prices jump again.
5. magnifico said...
You can buy my house Ztewart, 15% less than it went on the market for, three months ago. Deal? Big it up Assetz in da house.
6. uncle tom said...
"before prices jump again"
- Into the abyss....
7. letthemfall said...
A Z-class business run by a grubby individual
8. it_is_going_with_a_bang said...
Erm 20% below market value?
No I think you will find the market value is what they can get for it - that is the market value.
You would have to be very distressed indeed to sell at 20% below what anyone else would give you.
For that to happen it would need a bunch of corrupt estate agents - who obviously don't exist.
9. planning4acrash said...
Yer, so the £50,000,000,000 is coming from the tax payer, to banks so that they can buy our properties after pricing us from the market in the first place, so that they can charge us high rents for properties that were once ours. Do you see the obvious theft going on here?! The London Lite today is suggesting that the loan is for the benefit of homeowners!! Fat chance.
10. mark wadsworth said...
What LDOD says.
11. Sneaker said...
OH GOOD, SOMETHING ELSE TO SHORT !!
12. new user 2007 said...
I think I may buy a stake in this fund. After all, Mr ASSetz has got insider information, given he sold to a lot of the people who will repossessed:)
£200m in a £7bn market is almost significant, but I hope (that is sadly probably asking for too much) that the people meeting him in the City will not be as gullible as the BTL muppets he conned in the first place.
A yield of around 7%? With credit markets closed and leverage not being as easy to make money off, would they not be better off leaving their cash reserves in a liquid state in a bank account that offers the same rate?
Plenty of people have called the bottom of the housing market in the US quite a few times. The City knows that. I suppose we will just have to wait and see. He is chasing revenues as his "real" business is sinking.
13. uncle tom said...
New user said:
"£200m in a £7bn market is almost significant"
If you believe there will only be 40,000 repos.
- I'm projecting 2.5 million over the next five years.
Don't call the bottom too soon..
14. new user 2007 said...
I went to his site a few weeks ago and the "effective" rate on a mortgage above 150k was 6.7% (including interest and a whopping fee)....on the surface it looks a good deal, but the usual trick with the fees.
Also, his actuaries obviously do not have the same confidence in the market as him..the deposit requirements imply a minimum 20% cushion is needed on most of their products.
They also allow BTL mortgages for people covering just 100% of interest. That means most of his clients are classified as subprime.
15. deepak said...
They can only buy if the banks are aggressive on repocession?? Isn't it
I did mention a few months ago. that most of the banks will repocess ASAP after default. This is because that they can get the most money now.
And maybe 60% if they rif raff with the home owner and wait for a year.
16. Eric Pebble said...
I told you property "developers" were scum.......
17. Mr. Cheerful said...
The "Vulture" fund will no doubt get the bird as the market has, by all accounts, a further x% to drop- when we get to the bottom will someone advise the pack that they should all then start buying again !!!!!- will the present government and the lending institutions ever learn anything!. Having killed off the insurance companies and now the property industries- perhaps the public should now be encouraged to invest in bendy buses!
18. new user 2007 said...
Uncle Tom...you should note the incredible amounts of sarcasm that were involved in my first post:)