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Laugh? I nearly passed my fags around when i read this:

Britons Face Big Losses on Holiday Homes in Bulgaria

By Claer Barrett

Financial Times

British owners of second homes overseas are facing ruinous losses on their investments after plunging price drops in foreign markets wiped as much as £24bn from the value of UK-owned homes abroad, new research shows.

Dubai and Bulgaria are the worst hit markets, with reported peak-to-trough price falls of 75 per cent on property built for the in-vestment market, according to a report in the Investors Chronicle, the Financial Times' sister publication. The high levels of debt used to engineer transactions have ratcheted up the risk of financial problems for purchasers following the collapse of property markets.

Owning a second home abroad was once the preserve of the super-wealthy, but in the past decade a heady combination of TV property shows and cheap mortgages has convinced an estimated half a million Britons to buy their own place in the sun. The value of UK-owned foreign property investments peaked at £58bn last year, up from £10bn in 2000.

Conti, a UK-based foreign mortgage broker, claims all mortgage products for overseas buyers in Bulgaria have been withdrawn, and are no longer available on apartments in Dubai, effectively trapping thousands in the market. Oversupply and weak demand mean investors' mortgage repayments cannot be covered by rental income, leaving speculators with a huge debt and an unsaleable asset.

For those who need to get out, the only hope is a cash offer from a growing band of "acquirement firms" which focus on distressed assets. In Bulgaria, flats on the Black Sea coast which were sold for €60,000 (£53,000) to British investors are now changing hands for €15,000 or less.

Figures from property consultancy Savills show that at the market's height, 80 per cent of foreign property purchases were being financed by mortgage debt, compared with just 20 per cent seven years previously. The extent of price falls across foreign markets means that most of the 35,000 Britons who completed deals in the 2007-08 financial year will already be in negative equity.

Before the slump, buyers believed that capital appreciation would enable them to sell out at a profit to another investor - a classic "greater fool" market. Yet investor-driven developments have little appeal to domestic home hunters, so liquidity has evaporated.

In Spain, 1m newly built apartments remain unsold, and a further 2m are estimated to be back on the re-sale market as foreign buyers retreat. The newly built properties alone account for five years of supply, based on current sales rates, and local experts believe prices have already fallen by 30 per cent.

In Florida, where an estimated 70,000 Britons have bought second homes in the past decade, prices are said to have fallen 40 per cent, with some properties on investor-driven developments selling for below their building costs as buyers rush to exit.

Foreign banks are also seeking to chase their losses in the UK in the event of mortgage default. Since last Christmas, EU creditors can pursue a European order for payment which makes the process of debt recovery easier and cheaper.

"There hasn't been a sudden rise since the legislation was introduced, but we are getting a steady trickle of cases where people are in situations abroad that haven't worked out," said Paul Connearn, a spokesperson for the National Debt Helpline. "Creditors could try and enforce the debt through a charging order on UK assets, typically the family home. This secures the debt on that property, but doesn't necessarily force the sale."

"In my experience, US banks will no longer lend to the British as so many have handed the keys back and done a runner," said And-rew Bartlett, a Florida-based relocation consultant. "Certain banks now believe it is worth pursuing unpaid loans in the UK under UK law."

http://www.novinite.com/view_news.php?id=107300

:lol::lol::lol:

Wonder how that pratt on singing pig feels now!!! (Can't remember his name but he was always ramping Dubai property)

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... "ruinous losses on their investments" ....

This seems to me to be the problem. Buying a nice seaside flat somewhere warm and pleasant sounds like a nice plan to me but the idea that it is anything other than a COST is delusional. Since when did the brits get this crazy idea that buyng a property is the route to easy work-free income? Must be the dickhead programs on the telly with the big tittie lady :D

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Seriously, does anyone go on holiday to Dubai or Bulgaria? Bizarre investments if you actually wanted to let to people on holiday. Friend of mine tried to convince me this was a good idea a few years ago and he "bought" several properties. He was completely and utterly convinced it was a great thing to do and he'd make a huge return. I tried to tell him why I didn't think it was a market that makes sense ("no-one holidays there", dodgy local laws or lack of enforcement, only for speculators, can't resell-"you can't compete against the developers", foreign currency mortgage). Saw him recently - he admits it's now a noose around his neck. He hasn't told his wife about how much they're down. Good chap too but naive and blinded by the pound signs.

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This seems to me to be the problem. Buying a nice seaside flat somewhere warm and pleasant sounds like a nice plan to me but the idea that it is anything other than a COST is delusional. Since when did the brits get this crazy idea that buyng a property is the route to easy work-free income? Must be the dickhead programs on the telly with the big tittie lady :D

:P:P Yup :P

People are DUMB as P1GSH1T:

--------------------

1 - Recently, when I went to McDonald's I saw on the menu that you could

have an order of 6, 9 or 12 Chicken McNuggets.

I asked for a half dozen nuggets.

'We don't have half dozen nuggets,' said the teenager at the counter.

'You don't?' I replied.

'We only have six, nine, or twelve,' was the reply.

'So I can't order a half dozen nuggets, but I can order six?'

'That's right.'

So I shook my head and ordered six McNuggets - (Unbelievable but sadly true...)

2 - I was checking out at the local Woolworths with just a few items and the

lady behind me put her things on the belt close to mine. I picked up one

of those 'dividers' that they keep by the cash register and placed it

between our things so they wouldn't get mixed.

After the girl had scanned all of my items, she picked up the 'divider',

looking it all over for the bar code so she could scan it.

Not finding the bar code, she said to me, 'Do you know how much this is?'

I said to her 'I've changed my mind; I don't think I'll buy that today.'

She said 'OK,' and I paid her for the things and left.

She had no clue to what had just happened.

3 - A woman at work was seen putting a credit card into her floppy drive and

pulling it out very quickly.

When I inquired as to what she was doing, she said she was shopping on

the Internet and they kept asking for a credit card number, so she was

using the ATM 'thingy.' (keep shuddering!!)

4 - I recently saw a distraught young lady weeping beside her car. 'Do you

need some help?' I asked.

She replied, 'I knew I! should have replaced the battery to this remote

door unlocker. Now I can't get into my car. Do you think they (pointing

to a distant convenience store) would have a battery to fit this?'

'Hmmm, I don't know. Do you have an alarm, too?' I asked.

'No, just this remote thingy,' she answered, handing it and the car keys

to me. As I took the key and manually unlocked the door, I replied,

'Why don't you drive over there and check about the batteries. It's a long walk....'

5 - Several years ago, we had an Intern who was none too swift. One day she

was typing and turned to a secretary and said, 'I'm almost out of typing

paper. What do I do?' 'Just use paper from the photocopier', the

secretary told her. With that, the intern took her last remaining blank

piece of paper, put it on the photocopier and proceeded to make five 'blank' copies.

Brunette, by the way!!

6 - A mother calls 911 very worried asking the dispatcher if she needs to

take her kid to the emergency room, the kid had eaten ants. The

dispatcher tells her to give the kid some Benadryl and he should be

fine, the mother says, 'I just gave him some ant killer......'

Dispatcher: 'Rush him in to emergency!'

Life is tough. It's even tougher if you're stupid!!!!

-----------------------

[Doing the rounds atm - From a UK/US Newspaper?? ]... :rolleyes:

Edited by eric pebble

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Guest UK Debt Slave

I ALWAYS knew buying property in places like Bulgaria was fiscal suicide.

Jaysus! As if things aren't corrupt enough here

I persuaded a mate of mine to stay well clear of the Bulgarian property market 5 years ago. I think he will be eternally grateful that he listened

A fool and his money

I never seases to astonish me how utterly dumb and guillable British investors are.

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People are DUMB as P1GSH1T:

I rented a cottage in Somerset last year, nice little place tucked away in the countryside with a wood burning stove in the front room. The lady who rented it out ask me if i was ok with the stove as some recent tenants had phoned her up mid week asking how to "turn the fire on" :blink:

They also said the sheep behind the house were too loud. Though stopped short of asking how to turn them down.

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People are DUMB as P1GSH1T:

This is 100% gospel truth, no word of a lie etc

When i was a student in London i spent the first year in halls of residence with a mixed bag of foreign students, about half European and half American. I was sitting around in the shared kitchen one afternoon with 2 Americans and a couple of others when a German student came back from shopping in the west end. He said he was waiting to cross Tottenham Court Road at a pelican crossing and when the green man came up the beeping started and a tourist said in a loud American accent he wondered what the beeping was for (this was about 12 years ago when it was quite new) The German guy said he thought he'd be helpful and told them it was to let blind people know when the lights had changed. American tourist says "Gee in America blind people ain't allowed to drive!" Everyone in the kitchen bursts out laughing. Except the 2 Americans. Eventually one of them says "But it's true, blind people aren't allowed to drive in America"

We nearly had to call out ambulances for ourselves

Honestly i swear that is 100% true and accurate. And these were Americas achievers :blink:

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This is 100% gospel truth, no word of a lie etc

When i was a student in London i spent the first year in halls of residence with a mixed bag of foreign students, about half European and half American. I was sitting around in the shared kitchen one afternoon with 2 Americans and a couple of others when a German student came back from shopping in the west end. He said he was waiting to cross Tottenham Court Road at a pelican crossing and when the green man came up the beeping started and a tourist said in a loud American accent he wondered what the beeping was for (this was about 12 years ago when it was quite new) The German guy said he thought he'd be helpful and told them it was to let blind people know when the lights had changed. American tourist says "Gee in America blind people ain't allowed to drive!" Everyone in the kitchen bursts out laughing. Except the 2 Americans. Eventually one of them says "But it's true, blind people aren't allowed to drive in America"

We nearly had to call out ambulances for ourselves

Honestly i swear that is 100% true and accurate. And these were Americas achievers :blink:

Good story. Hoho

---

But I think there are blind drivers on the UK roads. See it every bleeding day!

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Looking at the prices where I am working at the moment (Tunisia) it seems that prices in developing nations are "globalised" and a house in a good area is just as expesive as a good area of Europe. I remember a thread where somone said his dad bought a flat in Pakistan for 25k and sold it for 225k and another thread where a flat in Tehran was 6 million dollars!!!

They are still deluded and are currently preparing themselves for the gold rush of foriegn homebuyers.

We even have a "sports city" with prices higher than the one in actual dubai now though the company still refer to the pre crash prices.

Guess what guys from Dubai do not come to tunis for the high wages but Tunisias definately go there for the jobs.

The only reason I can see for investing abroad is if it fundementally (ie yeilds) makes sense and thre is no place like that at the moment.

It is so so so risky

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Good story. Hoho

---

But I think there are blind drivers on the UK roads. See it every bleeding day!

There are. I had a patient a while back who seemed to have trouble with his vision. I asked him how he got there and he said he drove. I asked him about his eyesight and he said yes he did have a little trouble with it but it was ok as he never drove at night and he only drove on road that he knew :blink::unsure: hmm. Well i wasn't in a position to tell him what to do but i did mention how terrible it would be if someone got hurt and tried to work on his conscious (it was a rural area and giving up driving is a major deal there). As he left he proved my point perfectly by trying to exit through a cupboard. I had to guide him to the car park :rolleyes: These silver haired menaces.

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With that, the intern took her last remaining blank

piece of paper, put it on the photocopier and proceeded to make five 'blank' copies.

That ... that is ... GENIUS!

(Easier than fu cking about with the tray, causing paper jams and so on, like Mr Sausage-Fingers here)

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That ... that is ... GENIUS!

(Easier than fu cking about with the tray, causing paper jams and so on, like Mr Sausage-Fingers here)

i have got to be honest i think thats an ingenious workaround if you are not

technically minded and are not sure how to open the paper tray

(everyone has a first day at the office)

<_<

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Laugh? I nearly passed my fags around when i read this:

Britons Face Big Losses on Holiday Homes in Bulgaria

By Claer Barrett

Financial Times

British owners of second homes overseas are facing ruinous losses on their investments after plunging price drops in foreign markets wiped as much as £24bn from the value of UK-owned homes abroad, new research shows.

Dubai and Bulgaria are the worst hit markets, with reported peak-to-trough price falls of 75 per cent on property built for the in-vestment market, according to a report in the Investors Chronicle, the Financial Times' sister publication. The high levels of debt used to engineer transactions have ratcheted up the risk of financial problems for purchasers following the collapse of property markets.

Owning a second home abroad was once the preserve of the super-wealthy, but in the past decade a heady combination of TV property shows and cheap mortgages has convinced an estimated half a million Britons to buy their own place in the sun. The value of UK-owned foreign property investments peaked at £58bn last year, up from £10bn in 2000.

Conti, a UK-based foreign mortgage broker, claims all mortgage products for overseas buyers in Bulgaria have been withdrawn, and are no longer available on apartments in Dubai, effectively trapping thousands in the market. Oversupply and weak demand mean investors' mortgage repayments cannot be covered by rental income, leaving speculators with a huge debt and an unsaleable asset.

For those who need to get out, the only hope is a cash offer from a growing band of "acquirement firms" which focus on distressed assets. In Bulgaria, flats on the Black Sea coast which were sold for €60,000 (£53,000) to British investors are now changing hands for €15,000 or less.

Figures from property consultancy Savills show that at the market's height, 80 per cent of foreign property purchases were being financed by mortgage debt, compared with just 20 per cent seven years previously. The extent of price falls across foreign markets means that most of the 35,000 Britons who completed deals in the 2007-08 financial year will already be in negative equity.

Before the slump, buyers believed that capital appreciation would enable them to sell out at a profit to another investor - a classic "greater fool" market. Yet investor-driven developments have little appeal to domestic home hunters, so liquidity has evaporated.

In Spain, 1m newly built apartments remain unsold, and a further 2m are estimated to be back on the re-sale market as foreign buyers retreat. The newly built properties alone account for five years of supply, based on current sales rates, and local experts believe prices have already fallen by 30 per cent.

In Florida, where an estimated 70,000 Britons have bought second homes in the past decade, prices are said to have fallen 40 per cent, with some properties on investor-driven developments selling for below their building costs as buyers rush to exit.

Foreign banks are also seeking to chase their losses in the UK in the event of mortgage default. Since last Christmas, EU creditors can pursue a European order for payment which makes the process of debt recovery easier and cheaper.

"There hasn't been a sudden rise since the legislation was introduced, but we are getting a steady trickle of cases where people are in situations abroad that haven't worked out," said Paul Connearn, a spokesperson for the National Debt Helpline. "Creditors could try and enforce the debt through a charging order on UK assets, typically the family home. This secures the debt on that property, but doesn't necessarily force the sale."

"In my experience, US banks will no longer lend to the British as so many have handed the keys back and done a runner," said And-rew Bartlett, a Florida-based relocation consultant. "Certain banks now believe it is worth pursuing unpaid loans in the UK under UK law."

http://www.novinite.com/view_news.php?id=107300

:lol::lol::lol:

Wonder how that pratt on singing pig feels now!!! (Can't remember his name but he was always ramping Dubai property)

i maintain my thoughts just rent and you will be fine, i think.

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Guest skullingtonjoe
This seems to me to be the problem. Buying a nice seaside flat somewhere warm and pleasant sounds like a nice plan to me but the idea that it is anything other than a COST is delusional. Since when did the brits get this crazy idea that buyng a property is the route to easy work-free income? Must be the dickhead programs on the telly with the big tittie lady :D

Which one - the one with the moustache or the permanently-pregnant one?

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I ALWAYS knew buying property in places like Bulgaria was fiscal suicide.

Jaysus! As if things aren't corrupt enough here

I persuaded a mate of mine to stay well clear of the Bulgarian property market 5 years ago. I think he will be eternally grateful that he listened

A fool and his money

I never seases to astonish me how utterly dumb and guillable British investors are.

Visited a Bulgarian Black Sea coastal resort (it was on work!) in 2007. It was like a Spanish Med resort, but run by Russian-style chancers, gamblers, swindlers and lunatics. No culture, just sun, drinking, gambling and desperate housewives.

Some "apartments" were going for close to £100k iirc. When you consider what that was to local money at the time it was clear lunacy.

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i have got to be honest i think thats an ingenious workaround if you are not

technically minded and are not sure how to open the paper tray

(everyone has a first day at the office)

<_<

But surely the simpler option would just be to press "copy" without inserting a blank sheet.... it should still spit out blank pages with less effort.

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I once spent a couple of weeks turning pizzas upside down on a conveyor belt. One morning while I was performing this very important task the shift supervisor, who was trying to calculate how many pizzas we needed to invert, asked me what six times a hundred was.

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This seems to me to be the problem. Buying a nice seaside flat somewhere warm and pleasant sounds like a nice plan to me but the idea that it is anything other than a COST is delusional. Since when did the brits get this crazy idea that buyng a property is the route to easy work-free income? Must be the dickhead programs on the telly with the big tittie lady :D

funny, but even highly paid bankers thought the same.

they still do.

course, they are not selling property, they are lending someone elses money.

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This seems to me to be the problem. Buying a nice seaside flat somewhere warm and pleasant sounds like a nice plan to me but the idea that it is anything other than a COST is delusional. Since when did the brits get this crazy idea that buyng a property is the route to easy work-free income? Must be the dickhead programs on the telly with the big tittie lady :D

Good post. A holiday home used to be a status symbol but the two people I knew who had one (one in Mexico, one in Cambridgeshire) pre boom both tired of the call upon their time and couldn't wait to get rid of it, which put me off somewhat. I'm sure it was the TV programmes which changed the perception of it from a liability (such as a flash car) into an "investment".

5 - Several years ago, we had an Intern who was none too swift. One day she

was typing and turned to a secretary and said, 'I'm almost out of typing

paper. What do I do?' 'Just use paper from the photocopier', the

secretary told her. With that, the intern took her last remaining blank

piece of paper, put it on the photocopier and proceeded to make five 'blank' copies.

Brunette, by the way!!

I used to produce a monthly reviewed file which had a second review in London before going to the client and a copy returned to me. On my files I always put a folded piece of scrap paper at the front behind the clip as it stops the front sheets moving around and wearing the bindng holes. One time the copy came back and somebody had unfolded that paper, photocopied that scrap page, and then folded it up again and put it at the front. Well, they had been told to copy the file!

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Guest DissipatedYouthIsValuable
Good time to buy in Florida.

I'm holding out until California comes up for sale.

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But surely the simpler option would just be to press "copy" without inserting a blank sheet.... it should still spit out blank pages with less effort.

no

because if you had used a photocopier before you would know that if you

print a copy with nothing on the copier plate you get black

smudge lines on the copy :P

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Guest DissipatedYouthIsValuable
i maintain my thoughts just rent and you will be fine, i think.

You rent when you go on holiday? How vulgar. ;)

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Caribbean Villas and Apartments (holiday homes) have fallen circa 25% and rising (or should that be falling?). I think long-haul destination investments will fall further and harder than closer ones due to aviation route shrinkages and fare rises.

Talking of thick, I fondly recall the email from a young woman from New York, asking me to find her a hotel in the tiny Caribbean Island she was coming to that was "as close as possible to a subway station".

Another american girl was booked into a tiny guest house on the edge of a tiny fishing village with a population of just a few hundred. She emailed to ask me how frequent were the transit system buses that ran from one end of the village to the other. I had to explain to her that the entire village would probably fit into a typical suburban Walmart car-park a couple of times over.

Another older american couple checked out of our own little beach-front resort and wrote a complaint in the guest book that the "noise of the waves landing on the beach was too loud and there should have been a warning notice on our website".

Brits too can leave their brains behind when travelling - on more than one occasion they would ask me "how come they drive on the same side of the road as us?" when noticing traffic on ex-British Empire islands, or, "why do they speak english here?". They had 0 idea of history or geography, which I found more sad than funny.

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