Not Under Offer

[Marina]

As reported earlier, I am looking to buy a complete block of BTL flats local to me.

The development has been finished for over 4 months now and I still can't make up my mind. The thing that is worrying me is - no-one else has bought any of them.

I did tell the builder when he started building just over a year ago - 'Don't worry about appointing an agent to sell these Pete, I'll take the lot off you.' He and I have since fallen out because I have still not put my hand in my pocket and done the deal.

The thing is.... should I buy or not. How much mileage is left in the old BTL escapade?

[Phaedrus]

Yes buy. Sounds like a good deal. Yields are fantastic, and no risk whatsoever in the current market.

Oh, and AWOOGA! AWOOGA!

[Red Baron]

As reported earlier, I am looking to buy a complete block of BTL flats local to me.

I would be inclined to buy, but wait for the builder to go bust first. He will be haemorrhaging cash at the moment. Offer no more than 60% of the asking prices.

Edited August 11, 2005 by Red Baron

[Gavin]

Buy them all now, and offer more than the asking price. Whats more there are plenty (and I mean plenty) of unsold flats round my way. If you keep buying all of them, then eventually you will have a monopoly and no one can buy one unless they buy it from you.

You could create a monopoly, and if not , then a cartel.

I would lend you my STR cash to help your intervening cashflow problem, but I have left my wallet in my other trousers.

Tell me that this hasn't just been tried in the UK in the last 3 years?

[OzzMosiz]

As reported earlier, I am looking to buy a complete block of BTL flats local to me.

The development has been finished for over 4 months now and I still can't make up my mind. The thing that is worrying me is - no-one else has bought any of them.

I did tell the builder when he started building just over a year ago - 'Don't worry about appointing an agent to sell these Pete, I'll take the lot off you.' He and I have since fallen out because I have still not put my hand in my pocket and done the deal.

The thing is.... should I buy or not. How much mileage is left in the old BTL escapade?

<{POST_SNAPBACK}>

Huh??? Is this our usual Marina ???

[delite1]

Ozz,

It's just a p*** take out of TTRTR's earlier claptrap.

[OzzMosiz]

Ozz,

It's just a p*** take out of TTRTR's earlier claptrap.

<{POST_SNAPBACK}>

Ah, yes some times difficult to read a p**s take, unless its from TTRTR

or some other imbeciles!

[VickyPollard]

I am looking to buy a complete block of BTL flats local to me.

<{POST_SNAPBACK}>

Way to go.

As the saying goes.... pile them high and sell them cheap.

(The saying does not include the fact that, to make a

profit, you have to buy them even cheaper)

[fdk]

I know someone who is virtually doing just that. I spoke to them on Sunday and was quite shocked to find that she is buying new build flats by the crate load, 6 in this block, 8 in that block etc., AND is negotiating 20% discounts from the developer at the same time !! No deposit required as the flats are valued at full purchase price for mortgage purposes, with the actual 80% purchase price being all borrowed.

Then, she hands the flats over to the local authority to be used as social housing with a guaranteed rental income that just about covers all her costs.

She then remotgages from 80% LTV up to say 90%ish, and uses the MEW money to purchase individual older houses and flats near to colleges which can be subdivided up and rented to student sharers at a very (well, relatively) high yield.

The first thing that crossed my mind when I heard this, is 'Why are developers giving 20% discounts, already ?!!'

The answer is obvious really, isn't it ?

Edited August 11, 2005 by fdk

[Marina]

You guys are worrying me ... I thought everyone would realise instantly it was a response to that load of TTRTR claptrap.

[Ignorant Steve]

You guys are worrying me ... I thought everyone would realise instantly it was a response to that load of TTRTR claptrap.

<{POST_SNAPBACK}>

I'm always surprised by the level of gullibility and general stupidity shown by many regular members on this forum.

Everyday spent discussing in minute detail something about which they clearly know so little that everything they agree with is accepted at face value.

It's a pantomime on here - a few baddies for the goodies to hiss and boo.

Bunch of sheep who should question whether they've joined the right flock.

(They have BTW, probably purely by fluke).

[Gavin]

I'm always surprised by the level of gullibility and general stupidity shown by many regular members on this forum.

Everyday spent discussing in minute detail something about which they clearly know so little that everything they agree with is accepted at face value.

It's a pantomime on here - a few baddies for the goodies to hiss and boo.

Bunch of sheep who should question whether they've joined the right flock.

(They have BTW, probably purely by fluke).

<{POST_SNAPBACK}>

What exactly are you going on about?

Why do they call you ignorant Steve? Is it a nickname?

Do you think buying a block of flats NOW is a wise investment move?

[marzipan]

do you guy not have jobs or something else more productive to do?

[OzzMosiz]

I'm always surprised by the level of gullibility and general stupidity shown by many regular members on this forum.

Easy!! I was gullible in querying if Marina had jumped to the other side of the fence.

Not beyond possibility though, seen it before and will likely see it again.

[Ignorant Steve]

What exactly are you going on about?

Why do they call you ignorant Steve? Is it a nickname?

Do you think buying a block of flats NOW is a wise investment move?

<{POST_SNAPBACK}>

Read the whole thread you ignoramus. It's been made abundantly clear by Marina that it was a mickey take of another thread.

"Ignorant Steve" is my handle on here. Simply a reversal of Steve Ignorant the wisest person in the history of punk rock.

No, surprisingly enough, I do not think that buying a block of flats would be a wise investment move. I STR'd recently, so my colours are well and truly nailed to the mast.

[OzzMosiz]

do you guy not have jobs or something else more productive to do?

<{POST_SNAPBACK}>

Yes, but I'm so fast at typing I can do my job in half the time.

Do you not have a job?

[zzg113]

is negotiating 20% discounts from the developer at the same time !! No deposit required as the flats are valued at full purchase price for mortgage purposes, with the actual 80% purchase price being all borrowed.

I suspect her mortgage lender will be very interested to know about her 20% "discount". These schemes are known as "gifted deposit" arrangements, and lenders (if there are aware of them) generally won't touch them with a bargepole, because the true market value is the discounted figure, not the 100% figure.

[fdk]

I suspect her mortgage lender will be very interested to know about her 20% "discount". These schemes are known as "gifted deposit" arrangements, and lenders (if there are aware of them) generally won't touch them with a bargepole, because the true market value is the discounted figure, not the 100% figure.

<{POST_SNAPBACK}>

But then the bank is simply lending 100% of the lower 'current value' - not unusual these days.

And surely the bank would insist on a valuation for mortgage purposes carried out by someone appointed by themselves, who would tell them exacly how risky a property loan this would be in terms of 'current value'.

[zzg113]

the bank is simply lending 100% of the lower 'current value'

Yes, but do they know that? They think they're lending 80% on 100% of the property's value (ie with 20 % "wiggle room" to chop off if if they need to repo it quickly), rather than 100% LTV with no equity.

surely the bank would insist on a valuation for mortgage purposes

Yes, of course, but what are the comparables? If she has bought all the flats in a block there are no comparables. Also, how would the surveyor know about the 20% discount unless she tells him? The developer certainly isn't going to tell him.

[fdk]

Yes, but do they know that? They think they're lending 80% on 100% of the property's value (ie with 20 % "wiggle room" to chop off if if they need to repo it quickly), rather than 100% LTV with no equity.

<{POST_SNAPBACK}>

Good point - which also reminds me that she mentioned paying mortgage interest rates of about 4.5%, which she probably wouldn't get if the bank knew the full picture.

Yes, of course, but what are the comparables? If she has bought all the flats in a block there are no comparables. Also, how would the surveyor know about the 20% discount unless she tells him? The developer certainly isn't going to tell him.

<{POST_SNAPBACK}>

I don't think she was buying whole blocks as such, but I see what you mean.

I also think there's an element of banks being desperate for market share and therefore overlooking certain things for the sake of securing new business.

[Grime- skint wouldbe ftb]

I know someone who is virtually doing just that. I spoke to them on Sunday and was quite shocked to find that she is buying new build flats by the crate load, 6 in this block, 8 in that block etc., AND is negotiating 20% discounts from the developer at the same time !! No deposit required as the flats are valued at full purchase price for mortgage purposes, with the actual 80% purchase price being all borrowed.

<{POST_SNAPBACK}>

It sounds like she's got the INSIDE TRACK

http://www.insidetrack.eu.com/default.asp?SectionID=1

[New Darker Law]

I'm always surprised by the level of gullibility and general stupidity shown by many regular members on this forum.

Everyday spent discussing in minute detail something about which they clearly know so little that everything they agree with is accepted at face value.

It's a pantomime on here - a few baddies for the goodies to hiss and boo.

Bunch of sheep who should question whether they've joined the right flock.

(They have BTW, probably purely by fluke).

<{POST_SNAPBACK}>

Maybe Arrogant Steve would have been a better name.

NDL