Thursday, Jul 16, 2009
A property mogul's tale
The Scotsman: Down but not out after property bust
"THE credit crunch has definitely been a game of two halves for Edinburgh-based property tycoon David Alexander. On one hand, business at his eponymous property rental firm is booming – but on a personal level, the downturn has spelled something of a disaster. For Alexander, who started out in the industry 27 years ago at the age of 21, admits he lost his entire personal savings in the collapse of property investment fund Heritor's Residential Property." By Scotsman's standards, I found this article quite balanced instead of the usual ramping. So what does the future hold for a business man who says: "In 26 of the 27 years I've been in property, it has been pretty straightforward to predict that the market will rise. That is no longer the case."
3 Comments
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1. inbreda said...
what a one trick poe bet that house prices could only ever go up - an assumption that only a complete idiot would make - and then justifies it by saying that it was true for most of the time he's been in the business. Speculation with other peoples money in the hands of a complete idiot. The country is so very, very doomed.
2. inflation is eating my savings said...
Typical Edinburgh toadie.
Edinburgh constipates the mind, and turns people into devious obsequious snakes. Nowhere is the class system in the UK so overbearing as in Edinburgh.
Fart when you go there.
3. mander said...
Reading people's comments on the online versions of the newspapers it is clear how disgusted they are with property investors in general and they are right to be so because the property investors did not build new homes but bought up existing homes instead and with the help of the bankers creating an apparent shortage in the market. And now they are expecting people to pay double for a house.
Let alone the buy at any price competition against genuine buyers (families to live in those houses), the taxation was non-existent because the mortgage was offset by the rent and the profits were in the speculated values. Nothing to do with real economics because the interest on debt was and still is fully deductible. Now this needs to change. We respect business people because they create jobs and pay tax. Unfortunately BTL do not create any jobs and do not pay tax either.