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How Quickly Fear Can Turn Back To Greed ..


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My Dad has a very interesting and financially unsavvy friend .. Said friend was for a time a minister at the church that Dad frequented, then set-up as an independent tradesman .. (Don't ask .. ) He's one of those people who has had a number of careers and has never really stuck at anything for more than a few years ..

He's now in his late fifties .. in 2004 he was thinking about retirement and to this end he bought a terraced house in North Wales, which he was going to rent out and sell when he is 70 and retire on the profits .. (I do not get involved!)

He's always had to subsidise the property as even when it has tenants the mortgage repayments are £150 more than the mortgage, so with Voids and maintenance he's probably in for £3000-4000 a year ..

Since the start of the crash .. He's been fretting about his "Millstone" and it's been on the market for 18 months ... Two months ago he got an offer for what he paid for it in 2004 and he saw this as salvation ..

Now .. suddenly all the papers are full of house price rises and suddenly he's decided to keep the house as bricks and mortar is always a good investment ..

Lord help us ..

(Yes he does owe my dad a sum of money described by dad "Quite a bit" .. which could be anything from 10-100,000 ..

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My Dad has a very interesting and financially unsavvy friend .. Said friend was for a time a minister at the church that Dad frequented,

Gave up religion for property speculation?. Interesting CV.... His nest egg was a terraced house in North Wales?

The very hot spot that's suffering the highest unemployment rate in the UK

I wouldn't lend this high roller the price of a bed at the Salvation Army.

Edited by juvenal
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Yes I reckon many more property speculators have not been scared enough by the recent downturn, so have quickly gone back to greed, because they believe the media hype about price increases.

This greed will be their downfall eventually imo.

I agree with the previous poster, get your dad to claim his money back asap.

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he says his dads just as into it as the original BTLr.

classic share the risk but not the reward.

No .. dad's not into the BTL idea at all in fact has been encouraging him to get out .. my dad, from thinking my financial advice not sound for nine years, NOW thinks I may have been on to something .. (oh and the fact that he put £100,000 into Euro's on my advice at close to 1.50).

I don't think he cares about the money HE will lose but he's worried about the psychological effect on his friend .,.

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(Yes he does owe my dad a sum of money described by dad "Quite a bit" .. which could be anything from 10-100,000 ..

If I were you, I would write to the bishop or whatever it is, expressing your concern that one of his ex-employees has taken advantage of your dad, borrowing money without a formal contract. I believe the individual is no longer a minister? Still, if he borrowed while he was still in the pay of the church, this letter might carry some weight. I find that in these situations you have to be pro-active and look ahead - what will put you in a better position when this BTLer defaults on the loan or just refuses to pay it back, especially if it ends up in court or other legal proceedings, even exchange of lawyers' letters...

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