Friday, Nov 28, 2008

How does this pan out ?

FT: Investor buys entire street at cut prices

Did we have funds bottom feeding in the last property downturn ? Will this affect the dynamic this time around ?
I guess it will not cushion the falls because the funds would have to be massive to affect the UK housing lead balloon.

Posted by voiceofreason @ 10:05 PM (363 views) Add Comment

1 Comment

1. jonb said...

This is just another one of these "BMV" investors doing sale and rent-back schemes.

As I think we have discussed before, there are two problems with it. You don't buy "below market value". People sell to the highest bidder. If you are the highest bidder, it can't be below market value, but it could still be above market value.

Secondly, if the seller can't afford to pay their own mortgage, they can't afford to pay your mortgage on the property either.

Friday, November 28, 2008 11:02PM Report Comment
 

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