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Xil

"great Investment"

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I've seen the words "great investment" attached to several estate agent's adverts lately. Usually used when the price is around £100k and there is absolutely nothing positive that can be said about the property.......

Given that they are obliged (by their code of practice) to accurately describe properties, how can anyone state "great investment" at this moment in time?

I suppose you could argue that turning £100k into £50k could be termed a "great investment" if your mission was to chuck away £50k but there can't be many people in that situation?

Krusty uses the term in her Channel 4 programmes quite often. Again I would argue that this was completely subjective. Could I sue her if I bought one of her 'featured' properties and it collapsed in value after she told me it offered "great investment potential"?

Xil.

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Guest Bart of Darkness
I suppose you could argue that turning £100k into £50k could be termed a "great investment" if your mission was to chuck away £50k but there can't be many people in that situation?

Flushing the money down the loo would at least be quicker!

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Flushing the money down the loo would at least be quicker!

It’s not that bad if you first agree that house prices won’t crash and would infact rise by let’s say 1% a year, And also presume that you have the money in your back pocket.

You spend your £100000 and in return you get £300 a month in rent = £3600 a year + £1000 for the amount the property increased in value – total £4600. Then you have to take away costs like redecorating/ kitchens/ damage / windows / roofs- which as a typical BLT’er you would look on the bright side and would believe that it’s not going to be much and hope you would walk away each year with £3000 – which is not that bad if you think you are in it for the long run and house prices have stalled but will start again in 3 years time.

I don’t think BTL is a good investment- I would wait to see i.e. not invest until house prices have settled down- I just wanted to express a view of a BTL (from a recent phone conversation) as they don’t believe house prices will crash –in the long run (in the past) houses have always made lot’s of money (my mum bought for £2000 and sold 5 years later for £5000). And making £3000 a year on £100000 is not a bad investment if you think you bought at the bottom and they can only go up.

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It’s not that bad if you first agree that house prices won’t crash and would infact rise by let’s say 1% a year, And also presume that you have the money in your back pocket.

You spend your £100000 and in return you get £300 a month in rent = £3600 a year + £1000 for the amount the property increased in value – total £4600. Then you have to take away costs like redecorating/ kitchens/ damage / windows / roofs- which as a typical BLT’er you would look on the bright side and would believe that it’s not going to be much and hope you would walk away each year with £3000 – which is not that bad if you think you are in it for the long run and house prices have stalled but will start again in 3 years time.

I don’t think BTL is a good investment- I would wait to see i.e. not invest until house prices have settled down- I just wanted to express a view of a BTL (from a recent phone conversation) as they don’t believe house prices will crash –in the long run (in the past) houses have always made lot’s of money (my mum bought for £2000 and sold 5 years later for £5000). And making £3000 a year on £100000 is not a bad investment if you think you bought at the bottom and they can only go up.

the 150% increase in your mum's house was probably in tghe early 70's? If so, inflation was about 20-25% per annum, so increases need to be seen in this light. You could get that in savings accounts!

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My opinion on houses that are advertised as a "great investment" - If it is so Great then why are they selling it? Has given some of my "houses are great investments" reason to pause before going on with some other daft reasons :rolleyes:

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It’s not that bad if you first agree that house prices won’t crash and would infact rise by let’s say 1% a year,

Therein lies the assumption that I don't think an Estate Agent or Krusty can have any certainty over.

In a rapidly rising market it is probably fair to say 'great investment' but at the moment who really knows what will happen in the next 6 months, 2 years or 5 years?

Can you imagine Krusty telling us that a pyramid get-rich-quick scheme was a 'great investment'? She would be out on her rear before she could draw breath.

Truth is that a pyramid get-rich-quick scheme might provide a better return than a £100k FTB property. All depends which group has the greater following of 'gillible fools'.

Xil.

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its probably illegal to describe it as a great investment. you could maybe write to them asking for a breakdown or projection or explination as to why its an investment and not simply a house sale.

saying that. who cares ?

id like to see the words 'great investment' replaced by 'bloated shelter'

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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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