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Hollyoaks Star Has A £2.8m Portfolio


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From yesterdays Mail on Sunday.

"Hollyoaks actress Gemma Merna is jut one example of the fresh wave of landlord purchasers. A newcomer to property investing, the 25-year-old has decided this is the ideal time to throw her savings into a portfolio in South Liverpool and Bolton, 35 miles away.

In an extraordinary shopping spree, resembling the worst excesses of the property boom in Liverpool a few years ago, Gemma has paid reservations fees on 18 flats in five developments at various stages of construction with a combined value of £2.8 million. 'I can buy flats in this area at ridiculous prices because developers are feeling the pinch,' says Gemma. By carefully saving any spare cash from her sizeable salary she has built up a pot to invest of around £200,000. Last month she announced her engagement to Liverpool property developer Ian Minton and now wants to make as big a splash on the local property scene as possible.

However, she won't be taking on any units from 27-year-old Ian's most recent development on the edge of Birkenhead Park. The combined value of the 20 flats in his glass and steel building has fallen from an estimated £5.3 million in late 2007 to £3.2 million and, rather than sell at low prices, he has decided to let them and wait for the market to recover. Two years ago Ian joined forces with a handful of other local developers to form a marketing co-operative, thepropertygroup.com, and he admits he can use her purchasing power to help his business partners out of a crisis. By encouraging Gemma to take out the maximum loan in each case, Ian has spread her money across a larger number of units. This will help his partners release cash they have tied up in projects at a time when banks will no longer lend to them. 'Prices are rock bottom and demand for rental property in Liverpool remains strong as long as you avoid city-centre tower blocks, which suffered from over supply,' he says. 'I'm not taking advantage - Gemma and I will marry next year so I have an interest in making sure she does well. But where my partners have failed to sell units in good residentail areas, I have encouraged her to go ahead. She is no fool. She is an independent-minded woman and she wouldn't do it if she didn't think it ws a good idea.'

Until a few months ago the only property Gemma owned was a two-bedroomed flat in Liverpool, which she bought for £182,500 in 2007 after landing her part in Hollyoaks. She put down a £9,000 deposit and took out a 95 per cent mortage, but unfortunately decided to fix her interest payments at 6.7 per cent. The value of her flat has since sunk to £160,000, so she is in negative equity. Having moved in with Ian last year she let it for £650 a month but her monthly interest payments are £968. Gemma says: 'I've learned the hard way. I hope I will do better with my new investments.'

Choosing from properties available through Ian's partners, Gemma has selected 16 two-bedroom and two one-bedroom flats in five schemes. Two units are valued at £250,000 and the others are worth between £115,000 and £175,000. Ian has rental valuations on each from a lettings agent at between £500 and £800 a month. Each property comes with a two-year rental guarantee. Ian says he has been able to bypass the usual 25 per cent deposit routinely insisted on by banks and has organised advances for Gemma of up to 85 per cent because she is buying bulk. She will put down only ten per cent and Ian's business partners are throwing in a five per cent developer's cash incentive which, along with their discounts, probably means they are foregoing a profit to release capital."

Blimey - I hope OK magazine will pay enough for the celebrity wedding pics next year.

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Here's a disaster in the making, without a doubt.

Young actress suddenly becomes major property player, under the 'boyfriend's' guidance....

'A newcomer to property investing..'

Oh dear..

We should follow this one up...

Edited by juvenal
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Until a few months ago the only property Gemma owned was a two-bedroomed flat in Liverpool, which she bought for £182,500 in 2007 after landing her part in Hollyoaks. She put down a £9,000 deposit and took out a 95 per cent mortage, but unfortunately decided to fix her interest payments at 6.7 per cent. The value of her flat has since sunk to £160,000, so she is in negative equity. Having moved in with Ian last year she let it for £650 a month but her monthly interest payments are £968. Gemma says: 'I've learned the hard way. I hope I will do better with my new investments.'

out of the frying pan....

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Am I reading it right that with a deposit of 200k you can borrow 2.8M

yup. LTV of 7% and therefore a 7% fall away from negative equity.

and the yields on these babies sound impressive... the most expensive is valued at £250k, with rents of £800pcm... so with 100% occupancy and zero costs that'll be a yield of well over 3%...

why is this legal? she'll be a charity, sorry taxpayer-bailed out, case within months...

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Something tells me shes already up to her neck in debt and using whichever rag this little pearl of wisdom is from as a conduit with which to fool the sheeple into parting with their hard earned monies to prop up the local slave box market.

Dont be fooled by the pretty face guys, she's as reptillian as the rest of them. Rotten to the core.

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The combined value of the 20 flats in his glass and steel building has fallen from an estimated £5.3 million in late 2007 to £3.2 million and, rather than sell at fair value, he has decided to let them and wait for gordon brown to bail out the property developers

corrected.

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No, she has used the money for reservation fees/deposits. She has lost the lot already, but does not realise.

oh, right. in a couple of months' time she'll release the equity from the increase in the value of the first one she buys in order to get the second one... the reservation fees give her an option to buy at today's rock bottom prices.

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'I can buy flats in this area at ridiculous prices because developers are feeling the pinch,' says Gemma.

You said it love.

By doing this, hasn't she just become one of those property developers who will feel the pinch?

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By encouraging Gemma to take out the maximum loan in each case, Ian has spread her money across a larger number of units. This will help his partners release cash they have tied up in projects at a time when banks will no longer lend to them.

Okaaaayyyy

Nice chap.... his mates can't get any more backing from the banks ... hmmmm wonder why? ... so he gets his minted dippy mare of a girlfriend to help their balance sheets... :o

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She is no fool. She is an independent-minded woman and she wouldn't do it if she didn't think it ws a good idea.'

She put down a £9,000 deposit and took out a 95 per cent mortage, but unfortunately decided to fix her interest payments at 6.7 per cent. The value of her flat has since sunk to £160,000, so she is in negative equity. Having moved in with Ian last year she let it for £650 a month but her monthly interest payments are £968. Gemma says: 'I've learned the hard way. I hope I will do better with my new investments.'

She's 25.

He's 27.

I know it is patronising of me, but I actually feel sorry for her.

She's being used in so many ways it's difficult to know where to start.

Good salary, probably a very hard-working 'nice' girl, getting f*cked over every which way.

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That's £2.8m that could have been invested in British industry.

Why invest money in creating jobs and prosperity for many when you can use it to deny others a home and demand money for the privilege?

If renting is dead money then BTLers are the new death camp guards.

SLAG! :angry: :angry: :angry: :angry: :angry:

Edited by Dave Spart
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Jesus wept. If it's true that is....I must say I'm finding it hard to believe that any bank will actually be forthcoming with the finance- basically <10% LTV on a load of newbuilds?

Yes, I have to say I am very doubtful. Assuming, of course, it was truthfully applied for.

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She's 25.

He's 27.

I know it is patronising of me, but I actually feel sorry for her.

She's being used in so many ways it's difficult to know where to start.

Good salary, probably a very hard-working 'nice' girl, getting f*cked over every which way.

I doubt she was first attracted to him because of his modest car though.

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Something tells me shes already up to her neck in debt and using whichever rag this little pearl of wisdom is from as a conduit with which to fool the sheeple into parting with their hard earned monies to prop up the local slave box market.

Dont be fooled by the pretty face guys, she's as reptillian as the rest of them. Rotten to the core.

And her nose looks broken.

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She's 25.

He's 27.

I know it is patronising of me, but I actually feel sorry for her.

She's being used in so many ways it's difficult to know where to start.

Good salary, probably a very hard-working 'nice' girl, getting f*cked over every which way.

25? Thats like mid-50s in Hollyoaks Years.

Time to ring up the glue factory. I hope she wasn't counting on her earnings staying at their present level.

Not that I've ever watched it. With the sound on mute. Or anything.

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