Intersting Thread On Pistonheads.

[TylerDurden]

Had to post this.

Just the fact people can still be talked into BTL by estate agents. Utterly amazing. Some of the views seem almost 3 years out of date.

http://www.pistonheads.com/gassing/topic.asp?h=0&f=92&t=1007120&mid=120096&i=0&nmt=Buy+to+Let+%2D+What+to+consider%3F&mid=120096

[exiges]

Had to post this.

Just the fact people can still be talked into BTL by estate agents. Utterly amazing. Some of the views seem almost 3 years out of date.

http://www.pistonheads.com/gassing/topic.asp?h=0&f=92&t=1007120&mid=120096&i=0&nmt=Buy+to+Let+%2D+What+to+consider%3F&mid=120096

All comes down to the numbers really, there's still money to be made. However 3-4% yield is crazy

[TylerDurden]

3-4% I cant imagine a worse buisnes to be in for 3-4%.

[JimDiGritz]

Had to post this.

Just the fact people can still be talked into BTL by estate agents. Utterly amazing. Some of the views seem almost 3 years out of date.

http://www.pistonheads.com/gassing/topic.asp?h=0&f=92&t=1007120&mid=120096&i=0&nmt=Buy+to+Let+%2D+What+to+consider%3F&mid=120096

There is a direct correlation between flash cars and leveraged lifestyles.

All the seriously wealthy people I know drive distinctly average cars (£5m+ wealth plus)

[exiges]

There is a direct correlation between flash cars and leveraged lifestyles.

All the seriously wealthy people I know drive distinctly average cars (£5m+ wealth plus)

Money talks. Wealth whispers.

[beccles]

There is a direct correlation between flash cars and leveraged lifestyles.

All the seriously wealthy people I know drive distinctly average cars (£5m+ wealth plus)

'(£5m+ wealth plus)' How many do you know?'

Edited May 27, 2011 by beccles

[TylerDurden]

True True. The wealthiest people I know personaly, as in millionares. One drives a peugeot 306 and the other drives a 10 year old clio with a private plate. lol.

Yet everyone who works in my public sector office buys new cars every 2 years.

[Traktion]

Money talks. Wealth whispers.

I'd still like an Exige though!

[Spot]

There is a direct correlation between flash cars and leveraged lifestyles.

All the seriously wealthy people I know drive distinctly average cars (£5m+ wealth plus)

I only know one seriously wealthy person and he has a 15 year old Merc E-class estate and a 5 year old Jag XK convertible.

[JonoP]

Read the post on page 4 by the person that just bought a BTL.

They chose a 2 year variable BTL mortgage as opposed to a 5 year fix as 'no one knows what will happen with rates and it would be too risky to fix for 5 years'

How much lower than 0.5% are they expecting the BOE base rate to be in 5 years time

[jammo]

Frack me, it's a bit early to be getting back into property speculation! I'd have thought give it at least another 5 years - each to his own

[Executive Sadman]

I love this sh1t. This is the streetview from the place one of the posters wants to buy.

If its such prime rental territory why is almost EVERY house in that street boarded up?

Uploaded with ImageShack.us

http://imageshack.us/photo/my-images/508/82452016.jpg/

http://www.rightmove.co.uk/property-for-sale/property-18769902.html

[Executive Sadman]

I only know one seriously wealthy person and he has a 15 year old Merc E-class estate and a 5 year old Jag XK convertible.

Since we're comparing wealthy people, the wealthiest i know drives a late 80s Daihatsu charade, the next wealthiest a mid 90s citroen xantia

Personally id rather they buy overpriced motors, at least some wealth is spread around then.

[Greg Bowman]

Sam Walton drove an old pickup; yes Walton as in Wal-Mart.

Yeah and Walmart have a great record in creating high value jobs and building communities don't they? As the Alfa strapline goes "without heart we would be mere machines" There is something perverse in extremely wealthy people sitting on their cash and not spending it to create jobs (Tata's Jaguar Land Rover results yesterday anyone?) If you want real manufacturing high value jobs someone has to buy the goods.

Money is round because it is meant to go around as Sadman intonates in his post. As far all these secret millionaires go there are as many with flash motors as not because everyone seeks the evidence to back up their view. My experience is:

Good mate massive Ground works firm 300 employees -Bentley Blower & Rolls phantom new incarnation

Head of a large Global consultancy - Ferrari -neighbour

Parent at my childrens school - Timeshare laywer made millions (after all if you admire them for being tight you won't mind how they made their money will you?) - Aston Martin Vantage

Head of Insurance co - client -Lamborghini

Frankly sitting on millions beyond a reasonable personal safety net is not really an admirable trait in my book and does nothing to create jobs, careers or add value to other people's lives. Whilst with the exception of the time share Lawyer the others have all created new jobs in last three years.

http://www.commondreams.org/headlines05/1102-06.htm

Dead peasant anyone?

Edited May 28, 2011 by Greg Bowman

[Frank Hovis]

I love this sh1t. This is the streetview from the place one of the posters wants to buy.

If its such prime rental territory why is almost EVERY house in that street boarded up?

Nice bit of research Sadman, far more than the muppet will have done.

[200p]

Weird street. ONe side looks like a leafy upper middle class suburb in London, the other a run down slum town. Anyone locally got the full SP?

The description states the area is undergoing regeneration - has this stalled, what is the timescale? How well funded are the council+JV partners? What is the rental/job market like? This is a pure punt on that regeneration project.

Edited May 28, 2011 by Money Spinner

[exiges]

I love this sh1t. This is the streetview from the place one of the posters wants to buy.

If its such prime rental territory why is almost EVERY house in that street boarded

Not everyone can afford to live somewhere nice. Some of the wealthiest landlords are slumlords housing those on benefits.

At least you're not going to fret that tenants are going to trash the place.

[JimDiGritz]

'(£5m+ wealth plus)' How many do you know?'

4. They drive:

5yr(ish) old VW Golf.

8 year old Land Rover Defender

a 10 year old Jag (not sure which)

a Fiat 500 (quite new)

They also dress very simply as well, I doubt it is George at ASDA but they don't flaunt it.

If you met any of them in the street you would assume that they were "not doing very well"

[singlemalt]

Since we're comparing wealthy people, the wealthiest i know drives a late 80s Daihatsu charade, the next wealthiest a mid 90s citroen xantia

Personally id rather they buy overpriced motors, at least some wealth is spread around then.

+1

Spend it, invest it, give it away ffs! but don't just sit on it like all too many do (e.g 10's of £000's in current accounts long term! LOL).

imo when some people expire and get clobbered by IHT it's just karma catching up with 'em.

[Guest eight]

Since we're comparing wealthy people, the wealthiest i know drives a late 80s Daihatsu charade, the next wealthiest a mid 90s citroen xantia

Personally id rather they buy overpriced motors, at least some wealth is spread around then.

I bet it costs more to get those 2 through their annual MOT's than it ever would to run a brand new Jag.

eight

[goldbug9999]

My commuting/workhorse car is worth about 1/100th of my annual earnings i.e. about a grand.

Formula for ultra cheap motoring is:

buy a 6-7 year old diesel with 80-90k on the clock for less that £2000 off ebay

insure third party (since its worth f*ck all anyway)

never service it (since modern diesels don't really need servicing), just the odd oil change and brake pad change.

Car should be good for another 80k miles or so before it gives up.

[silver surfer]

Had to post this.

Just the fact people can still be talked into BTL by estate agents. Utterly amazing. Some of the views seem almost 3 years out of date.

http://www.pistonheads.com/gassing/topic.asp?h=0&f=92&t=1007120&mid=120096&i=0&nmt=Buy+to+Let+%2D+What+to+consider%3F&mid=120096

They seem to be thinking of BTL in terms of a pension. With private sector final salary pensions schemes virtually finished because of Brown's pension tax grab people are now quickly falling into two camps.

Firstly those who just can't afford to save or don't want to make any sacrifices in order to save. This group basically don't want to confront the hard fact that they'll be working into their 70"s, so are in denial.

Secondly those that accept that if they want to retire pre-alzheimers then they'll need to do something now. Unfortunately a very high percentage of this second group have concluded that BTL is the way to go. It's superficially attractive because property is the only geared investment open to most people, and they delude themselves that BTL is a route to a comfortable retirement without it hurting their current spending habits too much. In reality they'll also end up working into their 70's because the capital gain part of their BTL calculations won't happen.

So in the final analysis the only people who will actually achieve the comfortable retirement at an age when they can still just about manage an erection are public servants and that tiny percentage of private sector employees who have both the strength of character to save and the know-how to save intelligently.

[Guest eight]

They seem to be thinking of BTL in terms of a pension. With private sector final salary pensions schemes virtually finished because of Brown's pension tax grab people are now quickly falling into two camps.

Firstly those who just can't afford to save or don't want to make any sacrifices in order to save. This group basically don't want to confront the hard fact that they'll be working into their 70"s, so are in denial.

Secondly those that accept that if they want to retire pre-alzheimers then they'll need to do something now. Unfortunately a very high percentage of this second group have concluded that BTL is the way to go. It's superficially attractive because property is the only geared investment open to most people, and they delude themselves that BTL is a route to a comfortable retirement without it hurting their current spending habits too much. In reality they'll also end up working into their 70's because the capital gain part of their BTL calculations won't happen.

So in the final analysis the only people who will actually achieve the comfortable retirement at an age when they can still just about manage an erection are public servants and that tiny percentage of private sector employees who have both the strength of character to save and the know-how to save intelligently.

Jesus, the truth is depressing.

eight

[@contradevian]

Since we're comparing wealthy people, the wealthiest i know drives a late 80s Daihatsu charade, the next wealthiest a mid 90s citroen xantia

Personally id rather they buy overpriced motors, at least some wealth is spread around then.

Guy that bought my place in France pulled up in a 15 year old BMW. He had "homes" all over the place including the US. He was a cash buyer.

Of course had to suspend my bearish house price outlook until the sale was concluded.

[pete.hpc]

It's great to see some of the old classics trotted out in that thread;

canny owners

young professionals

long term its only going one way

you are likely to gain long term as house prices recover

Also, interesting chat about rich people and their cars. I was in one of the wealthiest areas of the country yesterday, the Wentworth Estate. Truly astonishing houses, most with one thing in common; very, very average cars on the drive.

Most lavish I saw was a newish Range Rover and a Jag. No Ferraris, Lambos, Bentleys. True class obviously doesn't feel the need to squeal in everyone's face about how rich it is.

Edited May 28, 2011 by pete.hpc