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Call For Change In Law On Property Marketting

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Looks like buying a city centre flat off plan in birmingham city centre at the peak of the property bubble might be a bad idea

http://www.bbc.co.uk/news/uk-england-12207571

Silly woman

Read this this morning.

The builders should go after her and make her bankrupt. If things went the other way and easy credit was still around and her flat went up to 150K she won't be complaining. You have not business buying a property if you can't put down a 30% deposit.

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Charles Cook, managing partner of Bristol solicitors Charles Cook & Company, said legislation around buying off-plan "needed to be refined".

He said such cases were "becoming increasingly frequent due to the severity of the recession" and its impact on banks and property developers.

"The law is, in my opinion, currently a grey area and urgently needs clarification from the courts," he said.

Whenever you consult a solicitor, they will always say you have a good case. They earn their fees if they win or lose. There is no "grey area". It is standard contract law. If you hire a builder to build you a house, which is all off-plan is, then you must pay-up when he has done so. The fact that house prices have dropped, and thus the buyer has made a loss, has no bearing. All that revoking the contract would do is pass that loss onto the builder. If she genuinely can't pay, then she can declare personal bankruptcy. She wants to back out of the deal losing no money and keeping her credit score intact. Understandable, but not fair to the builder.

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Feel sorry for her?

Miss Dyer agreed to buy the studio flat for £116,500, paying an £11,600 deposit when she exchanged contracts in 2006

116k ..for a *studio* flat....that's a rabbit hutch where you eat ,sleep and crap in the *same* room...for a small matter of 116 thousand pounds sterling, in Birmingham.... :lol: , shes doesn't need sympathy she needs a brain transplant.

She used her life savings for the original deposit, hoping to get on the property ladder despite a booming market.

30 years old and all she has saved by then was 12k? surely this would have been a big red flag to anyone lending money to her? :blink:

Miss Dyer, who bought the property through an investor group

Baaaaaa,Baaaaaaaa, it's my pension *bleat* :rolleyes:

"I just don't think they should allow these 'open-end' completion contracts," she said.

"It isn't fair that people have this financial burden hanging over them for years.

"Eventually I want to have children, but I can't even think about it with this hanging over my head.

Oh its not fair! Life just isn't fair! It seemed fair enough when you were buying your "investment" flat, presumably to sell it on

to some other sucker! , I really hope she teaches her children about basic ecomomics after this disaster... B)

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Whenever you consult a solicitor, they will always say you have a good case. They earn their fees if they win or lose. There is no "grey area". It is standard contract law. If you hire a builder to build you a house, which is all off-plan is, then you must pay-up when he has done so. The fact that house prices have dropped, and thus the buyer has made a loss, has no bearing. All that revoking the contract would do is pass that loss onto the builder. If she genuinely can't pay, then she can declare personal bankruptcy. She wants to back out of the deal losing no money and keeping her credit score intact. Understandable, but not fair to the builder.

The grey area is that it was supposed to complete in January 2008. If it had done, then perhaps the value wouldn't have fallen by so much and she would have still been able to get a mortgage.

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She is still prepared to use it as a buy to let if she could get a mortgage for her investment. I have no sympathy for these parasites whatsoever. She thought she could cut it as a sophisticated property speculator. what goes around comes around. Go bankrupt love and move on with your life and have babies.

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I do feel sorry for her. The whole housing bubble was a massive scam to rip off the public. Of course, like all scams, it used greed to entice the suckers for a fleecing, but nevertheless, the financial sophistication of most of the victims is on a par with children.

It's hard to pin the blame anywhere. Most of the participants, ripper-offers, or ripped-off were clueless as to the dynamics of the game - even it's most ardent cheerleaders (like Krusty) were fundamentally clueless as to the true nature of the scam.

Just a huge fiasco.

You are right Mr Durch! I know a few people who came very unstuck in the last house price crash in the 90's :huh:

I blame it on the weather! :lol:

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Myself and many other investors now find ourselves in the impossible position of being unable to complete on the apartments we exchanged contracts on - for reasons outside our control," she said

An investment you say? Well it's tough $hit then, you made your bed, lie in it.

I'd have a modicum of sympathy for her if she was buying somewhere to live.

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and believed she was getting a bargain as was told by the seller it was worth £137,500.

hahahahahaha

i have a Pepsi bottle top here, its worth £5000, but i'll sell it to her for a bargain price of £4000, as i'm the seller i know the price, and in no way would i over inflate the price to make it sound like a sound investment when trying to sell at a cheaper price.

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You know I've got mixed emotions on this....

A few years ago I'd be joining the chorus bawling about her greed/stupidity/ignorance and any other emotions.

But who can have blamed her?

Perhaps she, like millions of others have taken her cue from the banksters - she's done her bit to privatise the profits when assets are rising in value, and now they aint, she wants to socialise the losses.

A piddling 100K or so of damage. Banksters can manage this with complete alacrity in < 0.37 nanoseconds.

I hope she sorts her life out and somehow manages to make a couple of sprogs!.

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This article is annoying on so many levels.

It starts by saying its her first 'home', then goes on to admit it was an 'investment'.

Also a reduction of 11.5k is noise, not a crash etc....

.........so she 'only' has a company car blah blah, well more reason to have saved more money then, not having to buy your own car!

No sympathy for investors!

They/people/BBC, really miss the point that the issue is not with house prices falling, but that there should be a time limit on new build/off plan. i.e. it has to be finished by x or you can walk away. Lets face it most people will be getting frustrated wanting to actually move in and live in their new house, I know I would!

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Pay what you owe, or go bankrupt.

She signed up to buy offplan, and calls it an investment and pension. Offplan come with risk including delays. She thought she was getting it cheap. Market. We all have to process what people say and write, including how much things are worth, but make our own decisions. It's time for those of us who didn't buy in and have had stress in many other ways to buy at prices we're more comfortable with.

Retrieved from google cache for it looks like the current page has the entry removed recently. Looks like a good match with bits of background from the bbc story, with her working for telecom company and having moved up to Newcastle.

Rosie Dyer

18f38f5.jpg

Title: Territory Manager at Vodafone

Demographic info: Newcastle upon Tyne, United Kingdom | Marketing and Advertising

Current: Marketing Services Territory Manager - North East Region at Vodafone

Past: Field Marketing at Reach, Freelance - Tactical Field Marketing –Sales / Training / Merchandising / Events at Self Employed, Digital Living Presenter at big picture, Buyer at Sally Hair & Beauty, Buyer at Connect Distribution Services

Education: Reading College, Cadbury 6th Form College, Studley High School

Less certain of this. Whether this is her as well, if she also did bit on the side as a promotions girl as well as her gig at Vodaphone. http://www.right-girls.co.uk/

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Rosie Dyer having her say on The Cube Owners Group page at facebook, ready to rent that investment out.

http://www.facebook.com/group.php?gid=120142141334517#!/topic.php?uid=120142141334517&topic=73.

Less scuba diving, more paying to what you owe creditors.

Other BTLers still happy to proceed with what they've agreed to buy at, but less so if the 2nd wave of properties coming to market at substantially lower prices. They want it all. No risk ******* gamblers.

Looks like RD bought one, or contractually agreed to buy one, which could be let out. There was some sort of rule where half of them had to be owner occupied but on facebook campaign site they say little way of making people comply with that.

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The grey area is that it was supposed to complete in January 2008. If it had done, then perhaps the value wouldn't have fallen by so much and she would have still been able to get a mortgage.

She took the risks, back when there was little protection in many offplan contracts, if they are delayed.

While other developers are pursuing defaulting buyers through the courts - risking bankruptcy for unwitting would-be first time buyers who could not complete - buyers in long-delayed schemes seem powerless to do anything about it.

The Home Builders Federation, the self-styled 'voice of the home building industry', offers no guidance on what might be a reasonable time to complete a scheme, nor will it voice an opinion on open-ended contracts.

'The contract has no long stop date and this is common practice within the property industry,' says Matthew Stephens, of Quest Property, which is building Gateway Plaza. It is not a member of the HBF.

All developers have standard completion clauses in contracts to the effect that completion will take place when the property is ready,' says John Outram

However from April 1st 2010 some new mandatory code is supposed to now be in force, to give offplan buyers more firmer information, and presumably, offplan buyer have more exit room out if builder can't meet obligations on time. It's only a code though, and I don't trust codes. If builder meets problems causing a delay, I don't believe you could rely on a code to get out of contract.

When I read this last year and tried to think through the implications of this, I thought then maybe fewer apartment blocks would be built, or that builders would seek a higher offplan price, as they are shouldering more risk. Extra risk that previously the offplan buyers were taking on, but the prices mostly depends on what mortgage and funding is like.

From April 1, a new mandatory Consumer Code will be established to bring order to the homebuilders' Wild West, and it will be enforced by independent arbitration. It will apply from the point of reservation, when buyers will be entitled to an agreement that sets out the terms, the price --and how long the price stays valid - and the reservation fee, which must be reimbursed if the agreement is cancelled. At the exchange of contract, sale terms and conditions must be clear and fair, and state the termination rights.

'The homebuyer must be given reliable and realistic information about when construction of the home may be finished, the date of legal completion, and the date for handover of the home,' it says.

http://www.dailymail...lding-cash.html

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  • 312 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% +
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      • Even
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      • up 5%



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