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Council estate capitalist

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Everything posted by Council estate capitalist

  1. Game's business has really been undermined by the publishers/distributors pushing digital downloads, 1 use codes & releasing the games with all the DLC included after about a year. The used game market isn't what it was. Someone mentioned Cex going bust earlier, I don't think they will go bust as the stores are mostly/all franchised but 80% of their floorspace is games/DVD's and if that's all pushed online they will struggle unless they can pivot into a more modern version of cash converters. Shopping centre locations selling DVD's for 50p can't be a sustainable business model.
  2. I've been following this story, First came to my attention about a month before he went to prison. People on the various Facebook property groups were concerned that interest payments on the "mini-bonds" weren't being made on time. He went off the rails a bit. I recall posts about family trying to have him sectioned. He posted a video showing himself paying to un-forfeit his office lease. Most of his staff had walked by that point so he was trying to recruit people quickly. Inspired Asset Management itself is quite hard to unravel. It appears to be the holding company with many subsidiaries (34) underneath but from the administrators report it seems that the majority of the assets have been taken by the fixed charge lenders (Bridging, development finance companies etc). Individual bond holders were merely financing the deposit/mezzanine tranch so are the first to be wiped out. It's most valuable asset appears to be the 50 shares (25%) in Property Tribes that it owns.
  3. When this blows up watch the councils head for the press, politicians and the court room in that order. It'll be like the interest rate swaps in the 80s. Even I'm shocked by Spelthorne, I knew councils were doing these deals but not to that extent!.
  4. They can promise anything they like, They're not getting in. at least not this go around. If they were to bring in free tuition it would be extremely unfair not to write current loans off, Especially the £9k craziness post-2012 The actual cost of writing off would be far lower than the £121bn face value of the debt. The last government sale achieved 49p in the £1 but this was for plan 1 loans with a far lower principal balance, and lower repayment threshold so the post-2012 loans must be worth far less.
  5. I suspect many of these "refurb to sell" properties are financed with hard money bridging loans at about 0.8% per month. Soon wipes out any profit if costs overrun, or the investor was overly optimistic on how long it'd take to sell.
  6. The Mothercare administration seems to be over the UK retail subsidiary only. The shares are still trading. It's international business made £20 something million profit last year, The UK business however lost about £36m.
  7. I'm not surprised that there is lending for this purpose. "arrears have been almost invisible “They are very good landlords"" Dear God what have we come to. 4.8% variable seems pretty steep. I guess it's justified given the limited loan life + the relatively small/specialized demand for these loans. Not the worst idea if you actually like the area, can get tenants for the rooms + want to stay after graduation, But if you need to move around for work it could be an absolute nightmare.
  8. Oh definitely, It's the same as cleaners/carers. Client gets charged £16, worker gets £8.21 or less. It wouldn't surprise me to learn that the "fire warden company" and the freeholder are related companies.
  9. Never buy leasehold. (999yr peppercorn rent house is the exception) Wooden clad buildings look like crap after a few years anyway. All the new-builds around here with wooden cladding look run down/weathered after a year of sun bleaching/British winter. From the article. £15 pound an hour for a "fire warden" to walk round the building. I'm in the wrong business.
  10. Another one bites the dust. "p2pindependentforum" is a good read. A lot of lenders on there have had concerns abount Funding secure for a long while. The high level of defaults, lack of communication + the questionable asset valuations caused many to pull their money out. AFAIK The revenue model of these P2P platforms is underpinned by the need to constantly originate/sell new loans. The collection of existing loans doesn't generate that much revenue for them. One case they provided a mortgage and "forgot" to register it!. There were numerous legal cases ongoing, some against the valuers who provided clearly inflated valuations.
  11. C'est la vie. Will be another book about greed, conflicts of interest and cults of personality that I'm sure I'll enjoy reading sometime around 2021. I bet lot of these leases will include rent-free periods etc or will have been back-loaded with more rent payable towards the end of the lease rather than at the start. That's how I'd do it if I thought I could get off before the ship sunk.
  12. Anecdote but fits in with the narrative of the thread. Mrs X works a manual sub £25k job, Bought a car on PCP 4 years ago. £235 a month for 48 months + £6k balloon payment at the end. Claims she never knew about the balloon and feels cheated. Anyway it's time for a new car so she goes into another dealership and starts the process again. New PCP deal on a new car. £250 a month + god knows what the new balloon is. PCP on new cars I can understand, A lot of the deals do stack up from a lender perspective in the end but PCP deals on used cars are just madness. I've seen ostensibly £1500/£2k 1.1/1.2l "first cars" being advertised at £4-5k on a 36 month PCP.
  13. The left-wing papers love a good soundbite. "removal of the spare room subsidy" has less of a ring to it. It was fundamentally a good idea. Why should the tax payer pick up the bill for extra bedrooms over and above the necessary amount. Sadly like all government housing policies they cocked it up massively. There weren't enough spare houses to allow people to downsize smoothly + the cost of moving redecorating is often/perceived to be higher than any saving the tenant would make. Paying hundreds for removals/redecorating to save £10 a week never exactly took off.
  14. There was a hideous wood clad development near where I live, Was started in '07 then left in limbo until about 2016. By that point the cladding looked horrible, at least 20 years old. Don't think there's a single owner occupier in the development, Nobody would buy them.
  15. Hideous, only 1 piece of furniture I'd keep, The rest would go on fleabay.
  16. I think it's people's shyness about money. Taking a loan from Amigo with a guarantor is somehow morally above borrowing from the friend directly. Even though the risk is basically the same for the guarantor. I was looking on the ombudsman complaints about Amigo, What a load of idiots. almost none of the complaints upheld. Most were complaints that they asked the guarantor to pay "too quickly", complaints that Amigo didn't ask for proof of income/expenditure and believed their lies in the application, Or from people not understanding what the word "guarantor" actually meant.
  17. I believe some hot money funds have shorted his holdings in anticipation that he'll be selling everything to pay off investors. He's also one of the biggest shareholders of Burford Capital. It all appears to just be picking high dividend stocks/holding story stocks too long. 16% of the fund is in house builders.
  18. Woodford fund owns 20%+ of that. Short everything that guy has touched.
  19. HAHA >Shared ownership >"Wants Nationwide to pay the capital payments he would have made had he been given a repayment mortgage". What a moron.
  20. Most commercial loans I've seen require the rent to cover 125% of the interest due. I imagine the only reason lenders on resi BTL's aren't as strict on who it's been rented to is because they can always use section 8 ground 2 to evict within a few months. + the contracts are only 6/12 months anyway. Things would change if tenancies were 3+ years and mortgagees couldn't evict. Those who got in at the top will find ability to remortgage so they end up on a punishing SVR just as interest rates are likely to be going up. 'Nice but dim' bank sells the loan book to a vulture fund at a discount. If you don't have equity they'll wait until you default, If you do have equity they will claim the LTV covenant has been breached and demand immediate repayment.
  21. I think a lot are stuck in the mindset that they can just shove a surveyors board up and they'll get a tenant like they used to. although I've seen lots of empty units without anyone advertising them for rent. Whether they are stuck in probate or the owners just don't care I can't say. I have heard that in some cases it's the lenders who refuse to allow a lease to be granted if the rent is "too low" although I don't know how true that is. There's money to be made if you can buy up an under performing row of shops and then get SME's in on reasonable rents.
  22. Restaurants are a hard business, He'll probably learn more from about business running them than he would on a business management course.
  23. That + this https://www.plymouthherald.co.uk/news/plymouth-news/student-loan-scandal-plymouth-university-766254 Got caught up in a BBC Panorama sting. Simple scam, "freelance recruiter" signs up fake students to GSM, No need to attend or submit work apparently, student gets a generous government loan to spend on whatever, GSM gets the fees. Plymouth Uni rubber stamps the degrees.
  24. I've been on that group before. From what I gather UC is very generous for some, and not so for others. If you're just a single person aged 30 unemployed all you get is £73.10pw + in my area £70 towards bedsit rent. (lowest rent in this area is £90). So £7400 a year. UC goes down by 63p for every £1 earned. A couple with 3 kids would get just over £20k a year provided they were all born before 2017 (assumes rent of £450pcm) If they were born after 2017 It's still £16.5k for 2 children.
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