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Maths Couple Millionaires Quit Buy-to-let Market

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Maths couple millionaires quit buy-to-let market

A couple who quit teaching maths to make a fortune in the buy-to-let business have decided to cash in their 700 home property portfolio.

By Stephen Adams

Published: 7:01AM BST 03 Sep 2009

Maths couple millionaires quit buy-to-let market

Fergus Wilson said he wanted to spend his retirement mentoring other landlords - and enjoying hobbies such as their racehorses and breeding Belgian Blue Cattle Photo: ANDY PARADISE

Fergus and Judith Wilson are thought to have made up to £90 million since 1986, when they started with just two houses.

Now they have decided to capitalise on the house price rises of recent months to get out of the business.

Most of their houses are in the Ashford and Maidstone areas of Kent.

Mr Wilson, 61, said he wanted to spend his retirement mentoring other landlords - and enjoying hobbies such as their racehorses and breeding Belgian Blue Cattle.

He said: "The time is right for us to go. It will break my heart to say goodbye to all the houses we have but you cannot take them to the grave with you."

The couple got into the buy-to-let business in 1986 when they realised that it made financial sense to rent their existing three-bedroom semi in Maidstone, when they were looking to move to a bigger house in a nearby village.

But the Wilsons, who at the time were teaching in schools in Sidcup and New Romney, Kent, only really got into the game in the early 1990s, timing their entry perfectly as prices plummeted due to rocketing interest rates.

They rode the boom for 15 years, buying 180 houses in 2003 alone.

They have mainly stuck to buying new-build two and three bedroom houses "with a bit of grass and parking", avoiding the glut of town centre flats that have suffered the heaviest price falls. Mr Wilson once said that it was no good buying flats as an investment because "you cannot get people to buy jam tarts if they want cream doughnuts".

Last October they started offloading their property empire, which at its peak topped 900 houses, worth roughly £250 million.

At the time they said they would not sell all at once, to avoid crashing the market in Ashford and Maidstone.

However, they appeared to have revised their strategy, with recent property price rises convincing them that the time to sell is now.

Average asking prices in Ashford, Kent, rose from £209,000 to £221,000 between June and July.

Mr Wilson said: "At that rate we made more than £1 million this July whereas we did not make a penny in July 2008."

Only three of the remaining houses are outside Kent. One of their golden rules has been only to buy in areas they know and can easily monitor.

Mr Wilson stressed he would try to ensure they sold to responsible landlords to protect their existing tenants, but could "guarantee nothing".

http://www.telegraph.co.uk/news/uknews/612...let-market.html

Edited by sdoey

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Average asking prices in Ashford, Kent, rose from £209,000 to £221,000 between June and July.

Mr Wilson said: "At that rate we made more than £1 million this July whereas we did not make a penny in July 2008."

He hasn't sold them yet.

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Here is a link to The Times article about the Wilsons...

http://www.timesonline.co.uk/tol/money/pro...icle6819301.ece

The interesting thing (spotted by another HPCer) is that their property portfolio was worth £180 million, the market drops just 20% and they now have £70 million. So another 20% drop in house prices and they will likely owe the banks £40 million. :blink:

They had 900 properties. They have sold some and now have 700 mostly in the one area. Placing 700 properties on the market in one area will will cause the prices to fall further... Catch 22. To stay in profit they need to sell before the prices go down, but selling that many properties will cause the prices to go down.

I wonder how many BTL investors in Northern Ireland are in a similar position?

Debt is wealth :unsure:

Edited by Belfast Boy

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This is the guy who predicted UK prices will never crash and prices will double every 7 years

Mr Wilson knows best

How many do they actually own outright then as by looking at that article they have been getting interest only loans and doing alot of remortgaging?

I would have thought the safe way to create a buy to let empire would be paying off the mortgage for your first home then using the rent of the second one plus freed up expenses from your first to pay for the second quicker and so on and so on.

But these pair seem to be dealing in money they havn't got if I am reading and understanding correctly?

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How many do they actually own outright then as by looking at that article they have been getting interest only loans and doing alot of remortgaging?

I would have thought the safe way to create a buy to let empire would be paying off the mortgage for your first home then using the rent of the second one plus freed up expenses from your first to pay for the second quicker and so on and so on.

But these pair seem to be dealing in money they havn't got if I am reading and understanding correctly?

if you do it the safe way

you will pay lots and lots of tax

and your btl empire will take forever and a day to amass

imo this pair like most property magnates at the moment

are under

rock on!

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How many do they actually own outright then as by looking at that article they have been getting interest only loans and doing alot of remortgaging?

I would have thought the safe way to create a buy to let empire would be paying off the mortgage for your first home then using the rent of the second one plus freed up expenses from your first to pay for the second quicker and so on and so on.

But these pair seem to be dealing in money they havn't got if I am reading and understanding correctly?

Totally right, they are just on a large scale. I would imagine their total mortgage debt is in the tens of millions

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