Ajay Ahuja - Merged Threads.

[Dynamite]

Ajay - the leader of the speculators, is assessing the sentiment among his people. He had over 100 rental properties and now has 43 i.e. he has sold over 57 of them recently (to his own followers!). He's worried and is now checking the pulse of his frankenstein creation - but its fading fast.

Ajay polls his people

[PropertyGuru]

Ajay - the leader of the speculators, is assessing the sentiment among his people. He had over 100 rental properties and now has 43 i.e. he has sold over 57 of them recently (to his own followers!). He's worried and is now checking the pulse of his frankenstein creation - but its fading fast.

Ajay polls his people

sold his own crap to the suckers who bought his course???

Now THAT'S class!!!!

We are not worthy!

[subsidiser]

This is the link -Ajay Link

[Gone baby gone]

sold his own crap to the suckers who bought his course???

Now THAT'S class!!!!

We are not worthy!

Yes, we are witnessing the master showman in action - once you have convinced your audience about the mystical powers of snakeoil property, the suckers buy the lot!

[JazzyG]

Ajay Ahuja, author of the Buy to Let Bible, the Property Cycle, and many others, who is incredibly bullish, is selling up half his portfolio, 57 in fact!

http://www.ahuja.co.uk/property-news/ajays-blog/selling/

You can view the properties also at rightmove:

http://www.rightmove.co.uk/action/publicsi...bmit_dosearch=1

Now I for one cant understand why he would do such I thing, sell of half your portfolio to finance real estate abroad? If the deals were really that good abroad, surely a man of his standing could raise the finace for the deals by other means?

Well, this suggests only one thing to me ........ Mr Ahuja has woken up to the coming crash!

[insidetrack]

http://www.rightmove.co.uk/viewdetails-205...=1&tr_t=buy

Seven beds at that money and it's priced to go, baby!

[chichi]

The with or without tenant is a lovely thought.

[Tonester]

I did actually read a bit of his property cycle book. I agreed with a lot of what he said, but he never advocated selling up. He would just suggest not buying any more property. He does seem a bit late to be selling, for a so-called property expert...

[TheCountOfNowhere]

http://www.rightmove.co.uk/viewdetails-205...=1&tr_t=buy

Seven beds at that money and it's priced to go, baby!

Thats a really sh*t area !!!! I hate to think what it looks like.

5% cash back incentive too.

Sounds like he is desperate to off load!!!!

That's made my dad. muuwwwwhhhhhaaaahhhhaahhhhaaa!!!

[Monopoly]

I did actually read a bit of his property cycle book. I agreed with a lot of what he said, but he never advocated selling up. He would just suggest not buying any more property. He does seem a bit late to be selling, for a so-called property expert...

I was thinking the same...a late wake up call...

[grey shark]

I am selling 57 of my investment properties

I was in Prague a week ago visiting the in-laws and like a lightening bolt the idea came to me to sell part of my portfolio.

I had been used to saying to myself "never sell" but I had overlooked 2 very important things:

The opportunity cost of capital

The new capital gains tax rate of only 18%

The opportunity cost of capital is an accountant's term to calculate what return you could get from applying your capital which would then be stated as a cost if you did not apply the capital.

Its best explained using an example.

I own a property in Harlow bought 10 years ago worth £250,000 with a £120,000 mortgage outstanding on it. This means that there is around £130,000 in equity. The property breaks even on the rent and has no likelihood of growing anymore in the next 3 years.

Now if I were to keep this property I would make at best nothing or maybe lose a couple of thousand over the next 3 years.

If I were to sell the property I would realise after tax around £94,000. Now if I were to put it in the bank I would earn around £17,000 over the next 3 years. Which is a lot better than a few thousand being lost.

However, if I were to use this £94,000 as deposits to buy around 20 flats for £30,000 each which will give me a £150 profit per month plus an anticipated 50% capital growth over the next 3 years I would expect to make a whopping £400,000.

So I came to the conclusion that I need to put my equity tied up in some of my earlier purchases to work,

The new capital gains tax rate is highly favourable. It used to be 40% less a bit of taper relief which at best made it 24% but sometimes only reduced the effective rate down to 36% which is way inferior to the new rate.

So I am now in the process of selling 57 properties which will raise about £1.7m after tax which I will gear up to buy £11m worth of property which should grow by at least 50% making me a cool £5.5m over the next 3 years. Even if it doesn't grow by this much I will still make a monthly profit of £55,000 if I get full occupancy.

If you want to get some of these properties have a look at what my office have found.

Ajay

Looks like he likes to boast about himself but is also sh1tting himself at the same time

He reckons he'll make 1.7million after selling all 57 properties ........problem is he hasn't sold any yet

[Guest Shedfish]

The with or without tenant is a lovely thought.

what a nice chap he is.

[Guest DissipatedYouthIsValuable]

Punkawallah.

[TheCountOfNowhere]

Yeah, read that as:

"Just realised how much i'm about to loose big time if I dont bail out of the BTL market now. If I can get out I will have loads of cash but i'm crapping myself that i've left it too late. I dont want to loose it all so im selling. I can only sell 57 of my places as the rest are already in negative equity. I might flea the country with the cash from the sales in a black plastic bag and disappear to Brazil.".

Good luck to him, he might have left it too late.

Edited April 4, 2008 by TheCountOfNowhere

[OldGreg]

Me thinks we should keep a close eye on these properties. Will be good for a laugh

[munro]

"Its best explained using an example.

I own a property in Harlow bought 10 years ago worth £250,000 with a £120,000 mortgage outstanding on it. This means that there is around £130,000 in equity. The property breaks even on the rent and has no likelihood of growing anymore in the next 3 years.

Now if I were to keep this property I would make at best nothing or maybe lose a couple of thousand over the next 3 years.

If I were to sell the property I would realise after tax around £94,000. Now if I were to put it in the bank I would earn around £17,000 over the next 3 years. Which is a lot better than a few thousand being lost.

However, if I were to use this £94,000 as deposits to buy around 20 flats for £30,000 each which will give me a £150 profit per month plus an anticipated 50% capital growth over the next 3 years I would expect to make a whopping £400,000.

So I came to the conclusion that I need to put my equity tied up in some of my earlier purchases to work,

<snip>

So I am now in the process of selling 57 properties which will raise about £1.7m after tax which I will gear up to buy £11m worth of property which should grow by at least 50% making me a cool £5.5m over the next 3 years. Even if it doesn't grow by this much I will still make a monthly profit of £55,000 if I get full occupancy.

If you want to get some of these properties have a look at what my office have found. "

Of course...but why on earth does he think anyone will want to buy his cast-offs, when the same will apply to them? Extraordinary example of self-denial.

[ElPapasito]

Looks like he likes to boast about himself but is also sh1tting himself at the same time

He reckons he'll make 1.7million after selling all 57 properties ........problem is he hasn't sold any yet

OK this guy has made £2.1M on the sale of 57 properties before tax and after martgage clearance and it is all going in £4700 deposit per £30,000 flats x 366 = £11M at 84% LTV

His net proceeds on the OLDER half his portfolio that he is selling is £36,842 per house IF HE CAN SELL AT THE PRICES HE HOPES TO GET. He quotes a house in harlow with £120k of equity (presumably one his oldest and best) so even in the 57 he must have some low net equity properties.

That means the equity in his newer 57 houses he HAS to hold on to because perhaps they are already in negative equity is gong to be considerably less. I think he is desparately trying to improve his yield to try and keep his sinking UK protfolio afloat. The guy is taking an enormous punt with no back-stop position. If the chill winds of stagnation reach Prague he's toast very quickly.

[mfp123]

Yeah, read that as:

"Just realised how much i'm about to loose big time if I dont bail out of the BTL market now. If I can get out I will have loads of cash but i'm crapping myself that i've left it too late. I dont want to loose it all so im selling. I can only sell 57 of my places as the rest are already in negative equity. I might flea the country with the cash from the sales in a black plastic bag and disappear to Brazil.".

Good luck to him, he might have left it too late.

i think its more along the lines of "ive just realised i cant remortgage any of my 57 properties anymore therefore im going to be losing £1000 a month on each one"

[poppyseedbagel]

If he's got any sense he'll sell a mixture, so his losses cancel out his gains and he has to pay no tax. It's daft to sell properties standing at a gain in an earlier tax year than those standing at a loss.

But you wouldn't sell as he says his selling if they were as profitable as he says because you'd incur the tax -which would be daft: you'd just draw out the equity by way of loan - if you can that is - or if there is any equity... That is just such B.S

[bobby9983]

I wonder what they would say about this over on singingpig

[Jekyll]

1) His purchases from 10 years ago are only breaking even

2) Bestselling BTL guru only just realises he needs to think about the opportunity cost of capital

How many others are in the same boat?

[mfp123]

If he's got any sense he'll sell a mixture, so his losses cancel out his gains and he has to pay no tax. It's daft to sell properties standing at a gain in an earlier tax year than those standing at a loss.

But you wouldn't sell as he says his selling if they were as profitable as he says because you'd incur the tax -which would be daft: you'd just draw out the equity by way of loan - if you can that is - or if there is any equity... That is just such B.S

the funniest thing is that if hes bought 57 properties he will have needed to mew to the max on all his properties - most of his capital will be tied up in the ones he most recently bought, so all his money is leveraged in his newest properties. if price fall even slightly, hell be so highly leveraged that he will lose everything.

its likely he will be trapped in some of his properties as the profits he has wont cover the captial gains tax!

e.g property 1 buy for 100k price rose to 150k. mew out £50k to put a deposit on other properties.

when the time comes to sell property 1 at 150k he wont have any capital left in the property so no profit, but will incur a capital gains tax bill of 10k. i.e property 1, where he made most of his money, is un-sellable.

Edited April 4, 2008 by mfp123

[Orsino]

And here is the great BTL portfolio panic conundrum. Does he sell the older properties which will have the most equity and the healthy rental yields - or does he sell the more recently acquired properties with possible negative equity and low yields?

If he gets rid of the good ones he will release much more equity but he will also be getting rid of his most profitable assets while being left with the crap. If he dumps the bad ones he may well lose money, and anyway, who would want to buy them?

.... ....oh dear......

[Tonester]

Perhaps I'll read that book I've got on buying property - see if it's got any advice.... Property Cycle it was called

[Bloo Loo]

If he sells a few and withdraws equity from his portfolio, he is getting into even greater leverage. voids will be more painful.

He will be very vulnerable to MARGIN CALLS.

He also perhaps doesnt realise that he may have serious trouble selling, and then serious trouble getting the mortgages he need sot rebuild his portfolio.

If it was me, Id sell the lot.