madasafrog
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Posts posted by madasafrog
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This isnt bear food, the bank took a risk on prices falling, the customers took a risk on them rising (didnt have to pay a penny in the meantime) it was a IO loan with interest rolled up on death.
They did start to touch on the BMV scam- now thats a story waiting to be told
That will not be bear food either. Its just proof that there are people out there that are easily ripped off. Does nothing to the argument that GC2 is here.
Why is it that the mainstream media does not take your arguments on board that we are in or about to embark on a house price crash? Worthwhile question
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Feel sorry for Mandy , but i think this programme is gonna be a let down for us bears , just people being ripped off by equity release schemes ..........home improvements ..........yawn .
Yup
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I like this bump
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Yes, too early yet to call although clearly not all arguments are equal. For example, if I said the lizards were secretly controlling house prices you'd be hard pressed to claim this was as valid as more reasonable ones. At the moment, I would say the bearish arguments have the upper hand given the evidence we know but that the evidence is far from conclusive.
If all the bear arguments were correct, why has it not happened so far? The problem is economics in the present day is too complex and is evolving. To simply use historical events as a basis for backing a bears argument has proven to be unreliable and we have the recent years to prove it.
So for the moment, its wise to be open minded until we have concrete evidence
Arguments for a crash sometimes remind me of reports of UFO's. Lots of people claim they are out there but until one has landed on the whitehouse lawn, accept that not everyone will believe you.
Re the lizards, that depends on whether your last name is IKE.
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I dont understand how anyone with any intelligence at all, would genuinely think that the housing market is going to improve.
Dont you get it at all.
People are not buying, thats what Nelly is trying to tell you. It doesnt take much to comprehend that if people arnt buying, then others arnt selling and if no sales are going through or far less than normal, an EA is going to say this year has been disasterous.
Is anything unclear or are you simply yanking our chains.
Its a bit early for anyone to start calling the market. Only when there is definitive data from LR stats and its repeated over a period of time can we say for sure. Until then, one persons argument is as valid as the next.
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Thx re area.
Pls be careful re balancing hassle v capital loss. If / as prices will fall 20% from summer 07 to summer 09 in Shropshire (BTW - we were in Ludlow and Knighton last week!) will you feel the same had you had a 2 year lease on a lovely home? We expect to move into a 2 yr lease in November - £800k for £1800pcm...
Nice part of the country. Ironically, we are in a similar setting but another 45 mins north. The house you are going to is what we are looking to move to.
Considered STR and was amazed at the rent of the some of these places. Very cheap indeed.
I can see the attraction but its horses for courses. I dont want to use the family home to trade on the housing market.
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Two points - could you alter your details to indicate where you are? I wish everyone would.
Why don't you STR?
I am near telford area (east shropshire). Will adjust profile to show
I considered STR but I have a wife and two kids so dont want to mess about with moving them around too much. Plus we tend to enjoy improving the property we live in.
There is a risk on short term but i am not going to use the family home for my own spread betting. If the housing market falls, then let it. Our house is our home. I would rather my children be in our own home (and the banks of course) than renting. Even in a falling market, it would still feel more secure. I
If i were a single lad, I might take the punt and STR.
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I am very surprised at Cannock Chase.
Above average schools
No major crime
No major unemployment
No immigrants
No major drug related crime
Nice surroundings (The Chase)
No large council estates
Traffic congestion on the M6
A lot of large companies closed down
A few too many chavs and dossers
I am very surprised about Cannock Chase !!!
Me too. I used to live in West Brom and have friends and family there. West Brom town centre is scary. Dont take it personally. Wednesbury, Dudley, Titpon, Cradley Heath, Wolverhampton, Walsall are all the same.
All i can think is that the researchers did not make it out alive to report how bad it is.
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Ditch your Estate Agent and go with www.housenetwork.co.uk. Your total bill if you sell will be less than £500 and your house is listed on Rightmove. You could use what you were going to pay the agent to market your house more competitively than the rest. I sold my house in Feb using them, I would say the service is not at all comparable to most estate agents, it seem to be a lot more efficient (less bullsh!t) and better marketing material. Lots of photo's and 360 deg images so it cuts down people being disappointed with the house when they do look round because they get a very good idea from the sales material. Also you will feel good in knowing you are helping to rid this country of EA (not all just the froth) and let technology do what it is here to do!
Cheers for the tip
Not signed up yet and looks like we might leave until new year.
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Compaint submitted to the ASA.
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ST
I thought you were kidding when you said that you were going to report it
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Its true some of my tenants may now be getting back into trouble and if we can't work something out if / when that happens they would have to leave eventually. I do my best to put them in a much better position than they were before and I explain to them what will happen if they do stop paying, but there is only so much you can do to get the message across. As you'd imagine, I know others who have been in the business longer than I have and they have had relatively low levels of problem tenants. As before, its about managing risk and having resources set aside for a rainy day.
As your market is BMV and therefore highly motivated sellers, could let us know if you come across any BTL LL and give a profile of how they got into a mess?
I know there are confidentiality issues to be mindful of but as no names are involved then it should be OK?
If you can give a brief outline of how it occurred, it can show how shaky the BTL market is at the moment.
My purpose of asking is not to gloat, but to show what type of BTL LL gets into trouble. There are many on here that believe all BTL is now dead and buried. I am not of that opinion but i firmly believe that there are a lot of amateur LL who are getting caught with their pants down at the moment.
Well done for being open and frank
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According to a recent report I read, 90% of houses for sale are listed on Rightmove.
Is the proportion really that high?
Who markets the remaining 10%?
I had heard 70% for rightmove. Other main site is www.primelocation.co.uk
There are many other sites but they mainly seem to be sponsored ads from primelocation
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Just out of curiousity ... what is your deal with regard to HIPs? Is the estate agent paying? What commission are you paying the agent? Is there a clause that will make you pay if you take the house off the market etc. Did they all offer the same/similar deals? Which bit of the country are you in? What's your inside leg measurement?
HIPS is costing £199+ VAT but there are a couple more searches (environmental and coal) that aren't included at that price which has thrown on another £60. HIPs taking 2-3 weeks to do and it is paid for by us. Not heard of an EA doing it.
EA fee is 1.25% but negotiated 1%
We have got a fee of £100 to put down with the EA to cover photo's etc. If the house is sold, then that £100 is knocked off the final bill (which would be nearly £6K so woopy woo). If we pull out then the EA has £100 towards costs which is not much considering time spent and the marketing costs (Brochures etc). Not sure what other EA's are offering but this EA is OK. No minimum term. The manager and the staff are normal and down to earth. Not your typical EA's.
In the East Shropshire area on outskirts of rural village
Inside leg -32inches
Lunch- Pork Sandwich
Starsign - Cancer
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This is just mew in my opinion. The money has to come from somewhere, from what I see, Mr T is doing what an insovency practitioner would do.
He would come to an arrangement with the creditors, sort out a deal with the mortgage company, and charge a fee.
The difference here, is that the IP has to be qualified and is a regulated professional.
Mr T is not.
Mr T, you may well be a " good chap" and all that, but it would be so easy to dip in, especially with a weak client, and who would they complain to in the event that they find your advice at the beginning WAS NOT in their own best interest.
The clients here have lost it all, and Mr T is offering professional advice without recourse.
It is a recipe for sharks to come in and undercut you every time Mr T, and they will have no compunction about tossing the clients onto the street in 6 months- as has been reported by the BBC recently.
I dont see where he has been an IP. All he is doing is buying their house so they can pay off the creditors. He is in no position to make arrangements with creditors and is having a mortgage arranged for himself not the client.
He is not going in there as a financial advisor, insolvency practitioner or samaritan. He's going in there to make a deal where he can get the client out of a hole and keep their home, and to make himself some money at the same time. In doing
The clients have only lost what they have thrown away.
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[*]How long have you been doing it for? 18 months
Good debate everyone. Thanks for talking things through. I must admit I was unsure about posting and its great to see such constructive questions.
Cheers for answering clearly and honestly. Seems you have covered most bases. My only concern with this model is the above. In 18 months, the people that you have got out of the mire, may be getting themselves straight back in again. The accumulation of debt does not happen overnight and after 18 months some of these tenants may be getting themselves back into the same old game of mounting debt.
What are your plans from here? Expand further or keep it within a manageable size to reduce exposure? It seems things are going well for you at the moment, but even a temporary fall in the housing market could leave you exposed. Its great when your riding the wave of success, but I look back at the young lad (Lee i think) on the program that lost a £4million portfolio and became bankrupt.
You seem like you know what your doing so dont need advice from me but good luck anyway
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The local EA by us has a bit of a mixed view.
There are buyers out there but they are much more price conscious. He has said that some are going above the guide price yet some are on the market for some time and he is asking them to expect 5-10% off their asking price.
We are looking to move and are waiting for our HIPs report to be done. We have selected 4 postcodes that we can move to but there has been not one new property in our price range added in the last 2 weeks on rightmove. Pointless us selling if we have no where else to move to. May be wrong time of year i guess
Edited for clarity
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That's the way I believe it to. There was an article on here a while ago where the BTL mortgage company called in the receivers to reclaim the debt after the BTL sale didnt cover the loses. The lady lost her own house very quickly.
As BTL is a business venture, business rules apply - and they are much harsher than the normal softly softly reposession approach when it is your primary residence you have defaulted on.
The BTL LL is liable unless they have done it via a LTD company. The problem this presents the LL is that commercial mortgages are a lot harder than tradtional mortgages. The interest rates are higher and deposits much higher too.
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Hi all,
I'm one of the "money grabbing scumbags" who are apparently ripping people off. As you'd probably imagine, I see it a little differently.
I offer solutions to problems. It probably isn't the outcome the person selling would want in an ideal world, but its better than the other alternatives most face when, for instance, they're heading towards repossession.
Having met people who have been through repossession and still have the scars to prove it, I'm happy to be able to offer an alternative. Given the choice of losing my home, maybe moving my kids from school, destroying my credit rating, suffering social stigma, living in temporary housing, etc., etc. or staying in my home, not upsetting family life, holding my head up high in front of the neighbours, wiping out all / most of my debts and often significantly reducing my outgoings I would tend to go with the latter. By this point I've often exhausted alternatives like negotiating with lenders, remortgaging, going to court, etc.
My primary goal when I speak to a client is to stop them being repossessed, if that's their particular issue. I will look at as many alternatives as possible before buying the property as a last resort. Ironically, I probably buy more property as a result through recommendations, as the person I've helped will often know someone else in a similar situation and they will refer them to me as they know I won't just try to buy the property.
I do make a profit from helping people and I think that is justified. They get a solution to their problem and I get a good deal. And by buying below market value I can buy with little or no money down, meaning I can help more people and buy more property. A win win in my book
There are benefits to the homeowner by using this scheme. If they got repossessed then they would lose the 20% that you might knock off the price.
I have a few questions as i am not convinced that this is win win win in my book
- How long have you been doing it for?
- Dont you think that the business model is a bit flawed? If the person buying the house off you has got themselves into desperate financial trouble doesn't this tell you that they cannot manage their finances and that your future rent also looks insecure?
- What percentage of your portfolio is made up of these tenants?
- How will you manage the cash flow if/when they stop paying rent?
- What % do you pay below the market value (rough % OK)
- If you have these properties on a fixed rate interest only mortgage, what happens in the event of a fall in the market and you cannot get the 85% LTV on the properties when the fixed rate ends?
Cheers
'weve' Lost Our Home " Program On Tongight
in House prices and the economy
Posted
BUMP is a term where a pointless post is made with the intention of purely raising up to the top of the board and raising its profile.