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Mark5290

Another One To The Slaughter

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Guest Bart of Darkness
if you dont start working on n life at our age by the time you know it your 50 with nothing. if i own 4 propertys by the timw im 25. live in one and let out the other 3 then by the time im 50 ill defo be a million air. and thats min

The best laid plans...?

This guy obviously expects prices to keep rising as they have done. :lol:

million air? No.

Hot air. Yes.

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40 years.... :lol:  :lol:  :lol:

Not only 40 years but 40 years interest only.. the plank is still going to have to pay 250K when he's 60.

I hope the historically interest rates don't go up in the next 5 years or so :lol: thinking about it that is the least of his problems.

I dont even like the idea of a 25 year mortgage to much, let alone 40 :lol: .

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that will be the biggest rent anyone has ever paid in a long time.

Really though this is a huge problem.

40 year morgages?? what next to keep the bubble alive - Lifetime morgages??

Lending £250,000k to a 19 year old who probably earns about £19,000

And even then giving him a 110% morgage?? He couldnt even save up a deposit!!

This is definately going to end up in tears.

My only worry is this is a windup cause if it isnt there is definately something worng in the market place out there!

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Well I felt sorry for him - he's 19 - just a kid.

The irresponsibility of the lenders amazes me though. I can't see why they lend to people on these terms as it must be a big risk for them. Maybe they've been caught up in all the house only go up BS that they've been spouting?

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His view is probably that he has taken out an option on the housing market.

If prices rise, he makes money with massive leverage.

If prices fall, he loses a fortune, goes bankrupt and starts again, at a pretty young age.

From the point of view of a 19-yr-old with unspectacular career prospects this could seem a very good strategy. A fast track to £250K profit (he's seen prices double recently) or a period of working his way back into credit.

How many years before a personal bankruptcy is no longer a burden? 10 years? He'll be 29, younger than many FTBs these days.

I think it's crazy immoral behaviour, and the banks irresponsible for lending to someone like this. But the fact that they do will make it a temptation for some.

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He has also bought a brand new Renault Clio 182 Trophy by the looks of it. :blink:

Who's Ben182 then?

Hi,

I'm Ben182... been looking at this forum for the last few days, and it does make interesting reading.

I doubt the guy on cliosport was a wind-up, he's made a lot of posts on the forum. It is very worrying, he could potentially ruin himself if/when there's any downwards correction. Also interest only, not the greatest plan especially if viewed as a long-term option. Still there are always going to be people doing crazy things like this if someone will lend them the money.

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He'll be begging for mercy this time in 12 months, his house will be worth less, he'll have paid none of the original capital off and *really* struggling to make his monthly payments. I suspect he won't be owning that Clio for much longer anyway.

I especially like his naivety and then trying to tell people he's being clever "beating the system" :D

He *really* does believe he's getting a good deal :blink: - he's just blinded by the fact he suddenly has a few thousand in his bank account, that will dry up almost instantly and he'll be left with the reality of an ENORMOUS debt and defaults/bankruptcy. He has saved up nothing, zero deposit, now has a £250k mortgage - he works in a bloody bar for god's sake!

Utter, utter stupidity - from both him and the lender.

Someone who spells millionaire "Million air" doesn't deserve to be one anyway.

"WELL basicly i get a 89% mortgage. but i get 20% of the price of the house therefor iv got 9% cash back to playwith. so i pay a 5% deposit and the rest on stamp and stuff. so i actually pay nothing upfront. clever ay."

No.

"if i own 4 propertys by the timw im 25. live in one and let out the other 3 then by the time im 50 ill defo be a million air. and thats min"

Edited by FTB

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I think this line sums it up:

"its not much but its in Guildford and its £250,000. "

This really shows how detached from reality people are, pure monopoly money, he's just a kid with no actual concept of what he's doing, he's a teenager who works in a bar and now OWES a QUARTER OF A MILLION POUNDS and has to service the interest on that every month.

What if...interest rates go up to 6% ? Can he then afford the repayments? My left foot he can.

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Guest Bart of Darkness

A 19 year old will only have known the boom years.

Probably thinks that is is the normal state of affairs.

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He'll be begging for mercy this time in 12 months, his house will be worth less, he'll have paid none of the original capital off and *really* struggling to make his monthly payments.  I suspect he won't be owning that Clio for much longer anyway.

I especially like his naivety and then trying to tell people he's being clever "beating the system" :D

He *really* does believe he's getting a good deal :blink: - he's just blinded by the fact he suddenly has a few thousand in his bank account, that will dry up almost instantly and he'll be left with the reality of an ENORMOUS debt and defaults/bankruptcy.  He has saved up nothing, zero deposit, now has a £250k mortgage - he works in a bloody bar for god's sake!

Utter, utter stupidity - from both him and the lender.

Someone who spells millionaire "Million air" doesn't deserve to be one anyway.

"WELL basicly i get a 89% mortgage. but i get 20% of the price of the house therefor iv got 9% cash back to playwith. so i pay a 5% deposit and the rest on stamp and stuff. so i actually pay nothing upfront. clever ay."

No.

"if i own 4 propertys by the timw im 25. live in one and let out the other 3 then by the time im 50 ill defo be a million air. and thats min"

"I pay nothing up front. Clever ay?" No, because you'll be paying interest on it for 40 years you tw@t.

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"I pay nothing up front. Clever ay?" No,  because you'll be paying interest on it for 40 years you tw@t.

I didn't actually realise he'd just bought a *brand new* car too - I'm guessing that's on finance too. I'd love to know how he plans on putting petrol in the car and buying food. Credit card perchance...?

Scary.

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Just been on one of the mortage calculator sites - 5% for 40 years, and I doubt the interest rate is this low! :blink:

The bottom line, is that this interest only mortgage for £250,000.00, over 40 years, will cost you £1,041.67 a month.

In taking out this loan, you'll pay a total of £500,000.00 in interest. At the end of the mortage terms, you'll still owe £250,000.00

:o:o:o:o:o

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that will be the biggest rent anyone has ever paid in a long time.

Really though this is a huge problem.

40 year morgages?? what next to keep the bubble alive - Lifetime morgages??

Lending £250,000k to a 19 year old who probably earns about £19,000

And even then giving him a 110% morgage?? He couldnt even save up a deposit!!

This is definately going to end up in tears.

My only worry is this is a windup cause if it isnt there is definately something worng in the market place out there!

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  • 302 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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