Thursday, Apr 30, 2009
'BTL king' rubbing his hands in glee
Ajay Ahuja: 80% LTV mortgage on its way
Roll up Roll up!
Get ready for 1st July when a major lender is releasing the first 80% buy to let mortgage. They are busy recruiting to cater for the enormous demand that will occur once released.
This will mean only 25% BMV (below market value) needed for a no money down deal, and only 30% BMV to get a cashback deal!
I reckon we could see an 85% buy to let by October 2009. Then I have to say it will be happy days and the term PROPERTY MILLIONAIRE will start appearing in all the property press adverts again!
Ajay
Posted by little professor @ 05:37 PM (2372 views) Add Comment
24 Comments
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1. bidin'matime said...
Hopefully lenders have got wise to the 'discount' myth. Market value is what it sells for.
2. paul said...
I wonder if he drives a clapped out beamer and says 'innit' ever other word? Come to think of it he could always move into selling clapped out beamers now the property market is rapidly sinking under the waves.
3. paul said...
Ahh I see his business premises are in a shed on a business park near the charming Isle of Sheppey.
4. Brit 1234 said...
He got fined by the Health and Safety Executive for dangerous practice this year by fitting dodgy gas appliances into his properties. They didn't comply with the corgi codes
5. will said...
Great, a website with a goal - to get into as much debt as you can and be proud of it.
6. will said...
If he is worth £15 million, why does he need to take out 80% mortgages and why does his house look like he paid £180K in 2002?
I rekon he's up to his neck in it.
7. it_is_going_with_a_bang said...
He states his portfolio is worth 15M. Not his equity.
A huge difference.
8. peter_2008 said...
15M property portfolio means this twxt probably owns the bank about £14.99M debt (possibly guaranteed by GB by now). The very concept of "property portfolio" is introduced by VIs to confuse people. It avoids distinguish between asset value and debt, so people can’t tell the difference. People thought they were grabbing free money while taking on huge debts, which the cause of the current mess.
Untill, you are mortgage free, you don't own your house, your bank does!
9. Yoss said...
Just like most sellers in denial...My place is worth 1.6 trillion don't ya know and I only owe 1.4 trillion on it. I am clearly considerably wycher than yow!
10. crunchy said...
3. paul,
there are more snobs on this site than I imagined, really dawned on me today on another thread and hence again on this one.
What is your problem?
11. This comment has been removed as it was found to be in breach of our Blog Policies.
12. crunchy said...
Flash?
Flash the cash is ok by me.
Posts straight forward information.
13. krustyatemyhamster said...
"Posts straight forward information."
That Austrian fellow with the funny mustache was quite lucid too.
14. mander said...
"Get ready for 1st July when a major lender is releasing the first 80% buy to let mortgage"
Sorry if the fisrt time buyers needing a home and the only credit worrty people are not going into the market a bank will lend some money to investors to help the market? Does not realy matter if nationalised after.
15. lenny said...
post 8. peter2008
Too right about the "property portfolio" figures massaging peoples minds into thinking "immediate wealth"
But again they were so thick or "easily confused" to pay £2000 to £3000 for a cr@p seminar on BTL Investing when they could have gained the same knowledge from a book or the net.
Then the most idiotic of these new Landlords didn't go out seeking bargains but piled their money into Over-valued City Centre Flats which just happened to made available to attendees of the "Inside Track", "Darren Winters Property Investing" and similar seminars at 40% over their real value......
I do wonder if any of this batch of Amateur BTL Landlords have had any corrective brain surgery since.
16. paul said...
crunchy
I'm just trying to point out the folly of his own snobbery. If he actually had £15m in the bank, he'd be able to afford some nice premises, but in Mayfair or where ever, but as peter_2008 points out, he's deliberately confusing debt and assets so he doesn't really have £15m.
That won't stop him claiming he is worth millions - as you can see!
Its like the builder who lives in a council house but drives a bentley. In his street people laugh at his snobbery but once he gets to the end of the lane and turns the corner he thinks he's King Muck.
'Ahuja Group' indeed.
17. crunchy said...
15. lenny
No brain surgery needed. Losing money exponentially is far more effective.
18. str 2007 said...
If you read this guys life story (on his web site) it gives you some insight as to how things have spun out of control and how greedy people have taken away family homes etc. from the next generation.
He also lies. In 1 part saying he got started with a £500 loan from his mum and then goes onto say he was a qualified accountant working for Delloite Touche.
I find the whole thing very unfortunate, particularly for those that are faced with paying double or triple for their homes because of a greedy few.
19. str 2007 said...
Anyway I never did find the article on his website about 80% LTV mortgages, but assuming he's correct then lets say his initial portfolio was expanded at 66% LTV (probably higher if you see how he raised his deposits).
So 34% equity - 20% fall to date = 14% equity (or a loss of 60% of all his money in the space of 18 months).
So his property fund that was £15m is now down to £12m with £1.68m of equity.
To qualify himself for an 80%LTV BTL mortgage he'll just have to find £12m x 6% to make up the shortfall .
That's £720,000 deposit.
Lets see you raise that on your Barclaycard.
20. crunchy said...
paul, did it not occur to you that perhaps people of this persuasion like to be surrounded by down to earth neighbours and also happen to like high end cars. You are supporting my assumption by being set in your thinking.
There is another way. You can break the rule book, Gosh! I have lived in the suburbs and in less salubrious resorts.
The greens are nice and the air is fresh but neighbours values left a lot to be desired I felt. Given the choice I would rather the east end of London. That does not stop me appreciating nice cars. Having the choice I would rather live away from everyone and do my "own thing."
I hope you get my point, otherwise it's just narrow minded dogma!
21. crunchy said...
Not corresponding to a class....... Nirvana!
Some will never get it!
22. george monsoon said...
This guy reminds me of a bloke who I know locally as "shifty John"
He owned 23 properties and two buisnesses 2 years ago. His spiralling debt and lavish lifestyle have all put paid to that. The guy had to sell all the properties in the last 12 months at cut down prices to service his other debts. His company (a plant hire shop) went bust in January and he now lives in a 2 up 2 down terraced house (rented) and owes a fortune to the bank and taxman. He once drove round in aston martins and Mclaren SL's, but he now has a 5 year old renault clio with a personalised number plate!! sort of says it all really.
My point - the guy in this article will probably end up going down the same path.
23. Jonathan said...
He links to LandlordZONE.co.uk from his site.
The forum page (http://www.landlordzone.co.uk/forums/) has one interesting thing;
scroll to the bottom to see currently active users - which also has a barometer style activity history:
"Most users ever online was 305, 19-06-2007 at 09:17 PM."
Says it all really.
24. Rrp said...
"I wonder if he drives a clapped out beamer and says 'innit' ever other word? Come to think of it he could always move into selling clapped out beamers now the property market is rapidly sinking under the waves."
This is my first ever post, but I regularly look at this website and think its great....bar some of the posts.
The reason I feel compelled to post today is that this guy is a really nice bloke. Admittedly, I've not seen him since we were at university, but I'd be very suprised if he now say 'innit'! I remember him as being very very humble, unlike a lot of rich idiots who went to LSE. Maybe reason his house isn't a mansion or he doesn't drive a flash car and have offices in Mayfair is because he is still humble.
As this is my first post, it all may look a bit suspicious. Its not. I liked that guy when I knew him, mainly because of his humility.