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Spirit

Rosie Told To Drop Price

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Hello? Is anybody out there? Who’ll buy my house? Come on, guys! It’s a really good buy. Well, there’s an Aga. And it’s (quite) near the new Olympic “hub”. But estate agents in Islington all pull long faces when I turn up.

Drop the price by £50,000, one said. You must be kidding, I told him. Think of my overdraft. So, I think to myself, if we can’t sell it, we will continue renting it out for the time being. But I would like to flog it before the next general election. And there are plenty of people out there like me, only in more of a hurry. So deals are being struck.

:lol::lol::lol:

http://www.timesonline.co.uk/newspaper/0,,...1748932,00.html

Edited by Spirit

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This is what I said last year. For many late entry BTL idiots there was never enough equity to allow them to sell their property as their cannot afford to make up the shortfall. In reality they have two choices:-

1) Sell up and find £x,000 in one lump sum. Shame you spent the mortgage equity on the actual deposit so theres no left to bail you out now :o

2) Continue to rent the property out, subsidising it by £x00 a month instead. I wonder what will happen when the economy enters recession and demand starts to dry up.

Not a pretty choice but if there is one thing this site has taught me if you are going to panic best to do so early (in this case the only solution seems to have been to panic before Rosie actually bought it, Ooops).

Of course if you've MEWed all you properties to build a portfolio up you won't be able to sell any of them. Firstly you'll have no cash to make up the shortfall, secondly you won't have any cash to pay the CGT you will owe when you sell the MEWed properties without the shortfall.

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Rosie is a good lagging indicator.

So if you want to get burnt, try selling when she's selling.

So, I should be grateful that people are sniffing around for deals, because it will mean more work for estate agents, which will mean everybody looks just that bit more busy, which will mean that people might start having faith in bricks and mortar again, which will mean that good times are just around the corner.

Or something like that. It’s a complicated merry-go-round, this property game.

She really has no idea of the underlying economics.

It's a good indicator that things are wrong when people who have no understanding of a business are making money.

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It's a good indicator that things are wrong when people who have no understanding of a business are making money.

Don't you mean that its time to get out when the shoe shine girl wanted in.

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its a shame that people get dragged into this, good or bad. all thats going to come back is frustration and bankruptcy for people who shouldnt have been involved in this in the first place.

whoever encouraged all this recent house price madness has a lot to answer for.

i think that person is gordon brown.

the ignorant idiot.

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its a shame that people get dragged into this, good or bad. all thats going to come back is frustration and bankruptcy for people who shouldnt have been involved in this in the first place.

whoever encouraged all this recent house price madness has a lot to answer for.

i think that person is gordon brown.

the ignorant idiot.

agree with this sentiment but also think she has it coming - not that i particularly wish anyone ill but because she has spent the last year telling us how clever she is and what a wonderful lifestyle she has been living based on her property 'empire'

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“Take a big Irish investor. These guys are buying from developers with 15%-20% discounts because they are buying in bulk. They borrow in euros with 3.5% borrowing costs and expect rental yields of 4% gross. So they will be breaking even on day one.

And they also have all the associated, and unmentioned, significant risks of currency fluctuations. Borrowing in euros, rental income in sterling.

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I think this article confirms my very first post so long ago now. The UK housing market is very different to the last crash. Since THA 1988 and especially the 1996 amendment, the market has been driven by and is underpinned by investors.

The late 80s boom & early 90's bust were driven by OO's.

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I think this article confirms my very first post so long ago now. The UK housing market is very different to the last crash. Since THA 1988 and especially the 1996 amendment, the market has been driven by and is underpinned by investors.

The late 80s boom & early 90's bust were driven by OO's.

Even more reasons not to be in it then. Owner Occupiers had little choice but to hold out for a brighter day and even if it took 10 years they could take a long term view and feel comfort in the fact that the property was providing a roof over their heads. The investors,the amatures that is, will not hang about a minute longer than they need to.This is very shakey ground.

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“Take a big Irish investor. These guys are buying from developers with 15%-20% discounts because they are buying in bulk. They borrow in euros with 3.5% borrowing costs and expect rental yields of 4% gross. So they will be breaking even on day one.

And they also have all the associated, and unmentioned, significant risks of currency fluctuations. Borrowing in euros, rental income in sterling.

She is utterly clueless! She has no comprehension of currency risk. The 0.5% net yield is nothing compared to the currency risk. She is also forgetting the constant costs of exchanging sterling for euros - where the banks are more than happy to take a chunky commission.

The "big" Irish investor is probably something of a myth. She makes them sound like the mafia or something. How many can there be? Let's face it, how many of them have experience of a house price crash? The Irish caught the housing bug before us and are more naive and dogmatic in their belief that property can only ever go up.

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Even more reasons not to be in it then. Owner Occupiers had little choice but to hold out for a brighter day and even if it took 10 years they could take a long term view and feel comfort in the fact that the property was providing a roof over their heads. The investors,the amatures that is, will not hang about a minute longer than they need to.This is very shakey ground.

A very broad statement indeed. I guess you're proven right by the rocketing rents & ease that OO's are buying up panicking investors......not.

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A very broad statement indeed. I guess you're proven right by the rocketing rents & ease that OO's are buying up panicking investors......not.

...yet. :D

Nomadd

Ps. Rents and house prices are falling here in London, BTW. But I keep pointing that out to you, and you keep ignoring it. Just like I ask you to come and buy some BTL around here that I can rent off you, but you never take up my offer.

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You've got to love Rosie...

Her estate agent (who is probably trying to let her down gently rather than giving her the full truth) tells her to cut the price by £50k... and she says her personal financial position tells her it is worth the extra £50k.

:lol:

I just fell off my chair.

The paper prints it because it is such entertaining reading. :lol:

And I really am amazed at the stories if these investors... they are BREAKING EVEN on day one!

Imagine that, the luxury of buying an "investment" that DOESN'T immediately lose you money. They really are lucky aren't they?

Yet more proof that the UK's property market has entered a surreal stage.

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A very broad statement indeed. I guess you're proven right by the rocketing rents & ease that OO's are buying up panicking investors......not.

Rocketing rents!!!

ROFLMAO!

Some estate agent ( :huh: ) and TTRTR reckon rents are "rocketing" so they must be.

Of course ARLA report rents as being completely flat over the last couple of years, both in and out of London, but if this pair say they are "rocketing" so they must be.

But if your livelihood depends on it, it is easy to convince yourself of almost anything...

because if you aren’t buying at a substantial discount, the arithmetic doesn’t work.

The arithmetic doesn't work even with interest rates at 4.5%

And this doesn't ring alarm bells?

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Guest prudence

Rosie is a good lagging indicator.

So if you want to get burnt, try selling when she's selling.

She really has no idea of the underlying economics.

maybe not but she was sensible enough to be in btl at the right time so I bet she still ends up making quite a bit from her property ventures. Certainly alot more than those who criticise her but completely missed out on the big money to be made from property investment. She will end up having the last laugh.

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She seems to think it's all a great laugh, or is it that panic humour coming out?

Dunno, she cannot lose either way, the bigger the disaster the more it feeds her journalistic career, remember before she went all out earlier this year and cashed in on the "debt and property porn" phenomia she was just a washed up ex-Beeb journo that people could barely remember, now she is known.

Whatever happends, Rosie's nest is well feathered even if she losses 100k in the process, it will make her career, she will be the poster child of the crash and cash in accordingly.

I feel sorry for all those as clueless as her without the same sort of career prospects.

I'd say she's a lot clever than we think and playing it quite nicely.

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Dunno, she cannot lose either way, the bigger the disaster the more it feeds her journalistic career, remember before she went all out earlier this year and cashed in on the "debt and property porn" phenomia she was just a washed up ex-Beeb journo that people could barely remember, now she is known.

Whatever happends, Rosie's nest is well feathered even if she losses 100k in the process, it will make her career, she will be the poster child of the crash and cash in accordingly.

I feel sorry for all those as clueless as her without the same sort of career prospects.

I'd say she's a lot clever than we think and playing it quite nicely.

shes hedged!

thats what its all been about shes a shrewd investor and none of us spotted it!

:lol:

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Heh, yeah. But she'll need a few payrises yet, if you believe everything she writes about her credit card bills.

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I think this article confirms my very first post so long ago now. The UK housing market is very different to the last crash. Since THA 1988 and especially the 1996 amendment, the market has been driven by and is underpinned by investors.

From the TimesOnline article :

“Take a big Irish investor. These guys ... expect rental yields ...will be breaking even on day one. .”

Walters (Artesian) is prepared to sit it out for capital growth.

Tell me TTRTR, if BBB, your old bull team mate read that, would he say investor or speculator?

Edited by Sledgehead

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maybe not but she was sensible enough to be in btl at the right time so I bet she still ends up making quite a bit from her property ventures.  Certainly alot more than those who criticise her but completely missed out on the big money to be made from property investment. She will end up having the last laugh.

Be very careful when making statements like this. Novice speculators tend to get more confident the longer a bull run (or bear for that matter if they are short) lasts.

Typically they will start with a small position, but once it has proved profitable they then increase their position, often geometrically. Some even become so confident that they start using borrowed money to increase their position. Whilst this is rare amongst green speculators in stock markets, it is the norm in property.

You may be surprised how quickly the benefits of a doubling in price of one position can be eradicated by falls in a quadrupled position.

DATE               NUM PROPS          PORTFOLIO £         PROFIT £        % CHANGEA                     1                         150                       0                    0B                     1                         300                       150                 100B                     2                         600                       150                 0C                     2                         660                       210                 10C                     4                         1320                     210                 0D                     4                         1386                     276                 5E                     4                          1206                     96                  -13F                     4                          1110                     0                    -8

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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