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apom

Who Has Actually Made Money...?

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Okay.. Massive rises in house prices..

I don't know if anyone here noticed... ;)

But does anyone here know anyone who has made money from it.

From this I do not mean

1) BTL Landlords who own several properties and have seen the value of each property increase.

2) Percieved equity in a home realised against borrowing (Mewing)

I mean, no debt.. money in the pocket...

True profit..

We have bulls here.. essentially the last men holding of a speculative market.. so they can't be countered..

think about it..

Someone had to play and win in the market..

I don't know anyone personally..

Some that thought they had.. who are looking unconvinced..

Who got out in time?

Edited by apom

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I know 'of' a couple who bought a 3 story house in New Cross when it was cheap. They did it up and rented out 3 rooms whilst living in the basement flat themselves.

They have sold, made a massive wedge and are buying a flat in Soho now.

They must have made 100's of thousands and because they are 'downgrading' to a flat they are realising the benefits of the proit.

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My cousins husband (about 32) got really caught up in the BTL game, made some money on Bristol flat, then some money on Chiswick home but then went beserk and bought loads in Bristol. Latest I heard is that he's gone bankrupt with over a £1M in mortgage debts and lots more on credit/loans. At one point he was driving around in a Porsche Boxster but it looks like it was all a lot of show and the fundamentals of his 'business' were totally flawed.

I look back and think 'if only I'd bought and then kept buying' but then his example shows what can happen when you keep buying and end up spreading the equity too thin over many properties with incomes that eventually don't cover the bills due to reduced rental yields etc.

He once had a house in Chiswick, £50K job in London, nice car, the lot. Now he has absolutely nothing.

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Okay.. Massive rises in house prices..

I don't know if anyone here noticed... ;)

But does anyone here know anyone who has made money from it.

From this I do not mean

1) BTL Landlords who own several properties and have seen the value of each property increase.

2) Percieved equity in a home realised against borrowing (Mewing)

I mean, no debt.. money in the pocket...

True profit..

We have bulls here.. essentially the last men holding of a speculative market.. so they can't be countered..

think about it..

Someone had to play and win in the market..

I don't know anyone personally..

Some that thought they had.. who are looking unconvinced..

Who got out in time?

yes i know many people who are now morgage free or have sizable amounts of cash which forms part of my arguament of why a crash is still many months away ...........

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My cousins husband (about 32) got really caught up in the BTL game, made some money on Bristol flat, then some money on Chiswick home but then went beserk and bought loads in Bristol. Latest I heard is that he's gone bankrupt with over a £1M in mortgage debts and lots more on credit/loans. At one point he was driving around in a Porsche Boxster but it looks like it was all a lot of show and the fundamentals of his 'business' were totally flawed.

I look back and think 'if only I'd bought and then kept buying' but then his example shows what can happen when you keep buying and end up spreading the equity too thin over many properties with incomes that eventually don't cover the bills due to reduced rental yields etc.

He once had a house in Chiswick, £50K job in London, nice car, the lot. Now he has absolutely nothing.

All of the STRs posting here have made real profits........

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I sometimes wonder (briefly) what would have happened if I had bought the place I am looking for now in 1998.

I wasn't able to because I was at UNi but I do wonder...

...I'd have been able to buy the sort of property I am looking for now but it would be £100k cheaper.

I'd have had a mortage of about £150k and would have been extremly poor for about 5 years. Would I be rich? No. But I'd be laughing at how cheap my repayments were and the fact that I would have cleared said mortage by 2010.

Ho hum!

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I only know 1 couple who have, she sold her flat in Docklands for a £100k profit, IMO very lucky to manage to sell just before the market there tanked, probably sold to an out of town banker who was relocating from overseas and couldn't give a stuff. Anyway she moved in with her b/f now hubby and they used her profit to pay off all of the mortgage remaining on his house.

So in a sense she had for a brief while made a big cash profit......before he persuaded her to effectively invest it all in his house :rolleyes:.

Still at least they're now rent/mortgage free.

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All of the STRs posting here have made real profits........

Like the man says, of course we risk losing out on any further potential gains whilst out of the market, but nothings completely risk proof. But like I said in another thread, right now I see it as a bigger risk being in the market, than being out.

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I have done well from the property market. I have developed 3 properties, one in London, Shepherds Bush, and 2 in Lymington, Hampshire.

For me, apart from continuous warnings about a house crash, 2 major events led me to sell up and wait.

1) BOE made a very public announcement around the spring of 2004. The warning was DO NOT buy property now if you are looking for short term investment. The result of this was the market shuddered in its steps, and an immediate slowdown was evident.

2) Radio 2 was interviewing an economist around May 2005. The economist warned very openly if you don't get out NOW, the consequences will be dire starting in the Autumn.

Whether there was a house price crash coming or not, those kind of public statements can lead to panic and cause an immediate decline in the market. The front page of the Daily Express the other day will have exactly the same effect.

I'm feeling very lucky I got out in time, and I wish everyone who is selling now, the best of luck.

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i haven't made a profit, but i have paid my mortgage off by buying in '99 and overpaying like mad on my mortgage.

it's nice to be debt free, and i think i'm making the best use of my limited (low earnerning potential) means by saving like mad again now and waiting for the market to be in my favour once more. if that doesn't happen soon, or the scythe of redundancy swings my way in the meantime then at least i won't be too worried about the bailiffs knocking on the door.

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Yes.

We bought a terraced house in Chiswick in 1996 for 192K, sold in June 2004 for 525K.

In the intervening years we paid off the mortgage.

With the profit we bought our house outright (we actually wrote a cheque from our current account at the lawyer's office) here in Canada. We've had the house a year and looking at the prices that similar houses are selling at, it's gone up around 25% in that year.

With the two housing markets going in opposite directions, and likewise the GBP/CAD fx rate, we could sell up and move back to London and buy a much bigger house than we had.

Not that we want to.

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Nice, Nice. Join the happy debt free bunny brigade. You can always live on a bit of cheap mince, unions and chips, a Pot Noodle and bread, cheese and pickle, you can afford it and pay cash if you are debt free.

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Guest Charlie The Tramp

Moved through 4 properties in the past 35 years total cash cost to me £19,304. Paid up newly taken out mortgage in 1976 with a generous redundancy payment in 1980, been debt free for 25 years. The mortgage repayments of £132 per month @ 15% were invested with my other investments for my retirement.

Retired 5 years early, would have been 10 years but for my business partner.

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We've done OK. I bought in 2001, Wife bought 2-bed house in 2000 (before we met). Sold my 2 bed flat in Jan 2004 and we sold Wife's place in June this year. Now renting. I don't put myself in the STR bracket though as our position is more cicumstantial than planned. We are not completely settled in the area where we are living so wanted to bide our time rather than wading in with another purchase straight away.

Yes, it would be great if prices went down but we are still looking and if the right place for us came up in the right area, we will go for it. I can't spend my life waiting................

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I made a lot.

Someone spoke about doubling their money. Well, don't forget the wonders of leverage in a rising market. If you treat interest costs as rent, I extracted nearly 50 times my initial deposit 13 years later.

I'll never put the money back into my house. I'll just put down a small deposit and borrow the rest when I buy near the bottom in about 5 or so years.

Me no comprendez?

WHy not buy the place outight at the bottomn?

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Yep

Bought a house for £66K nearly five years ago with a £10K deposit.

Remortaged it three years ago and put a £15K deposit on a BTL (£67K)

Due to massive rent arrears (£2.5K) sold the BTL for £91K

Just sold my resident home for £109K - very low for the area.

So have sold both and consolidated into one.

Leaves me with £20K in equity and £30K - real cash - to do up the new place which will only cost half of that.

A lot of the so-called profit has been eaten up in fees/redemption penalties/rent arrear etc etc

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I reckon I caught the market timing perfectly but in my case it was pure luck not due to a clear strategy on my part. I relocated from up north (Derby) to London with the company pitching in with some differential mortgage costs and so I found myself the proud owner of a house in Greenwich at pretty well the bottom (Q2 1996) £115k. Some £20k of work (though in reality that probably counts for nothing), two children and a housing boom later it was time to check out Paris, Q1 2003 £325k. Since the house was rented out for large chunks of that time during various international episodes I was also able to pay down some of the mortgage.

I've lived in so many rented places now that I really cannot understand the emotional fuss about owning a place. I loved my little cottage in Greenwich, my first son was born there, but I pass it now on the train and think 'so what?'. It's just bricks and fairly flaky pre-victorian mortar. I know that the roof is ropey, I never succumbed to the peer pressure from neighbours to fix it or repoint the house etc, I'm a conservationist! - but even so every other weekend I was in Wickes buying the house expensive and pointless presents such as new taps, floorboards etc.

Not now, the freezer needs repaired - but its not my time and effort at stake but my landlords.

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I did alright from the UK property market too.

I bought in 1998 (60,000 Quid).......managed to pay off my mortgage in less than 2 years too.

The property is all paid up, so in a sense I have 'made money', although when I come to sell it (early 2006 hopefully) I expect the 'true value' will become obvious.

I can't complain.......it will still make a profit I suppose.

Cheers.

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Guest Charlie The Tramp
The fact that you lot did this b4 the internet even existed is pretty impressive IMO!

Well done you j@mmy buggers. :lol:

Not j@mmy at all, most was done with a lot of prudence, and the young uns on this forum who are also prudent will be the winners in the end.

<_<

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Bought early '96 for £46,000, paid off by 2000, valued last year (Aug) at £205,000, now I suspect heading back towards that original price - couldn't care less tho, it's a home more than an investment, near the sea, & will only trade up if the differentials narrow dramatically..

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a guy I work with saw his house go up by 150k so he sold ealier this year taking the profit, with the intention of moving to the states. that didn't work out, and now he's just about to buy a new place here cause he thinks the markets about to pick up again! :huh:

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Just goes to show how sickening this whole capitalist property owning money making life we lead is.

Some "win" but loads "lose". Lots of angry people - soon to be desparate and sad people. Who wants to live in a society liek that - you may be happy but whats the point of that when loads of other people are really screwed?

If I could think of a way to ban ownership of basic human necessities - like a home - I would. But no-one as yet has come up with a fool proof version. So we are tied into a continuous cycle of boom and bust...forever.

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yes I have made enough for my perposes,

Briefly In London

1995 - 1998 Buy 16 flats

2004 sell 6

2005 sell 1 (completed on the day the express headline came out ! )

Bought Paris 2001 -2004 % flats

No debt

Income > expenditure = Happiness

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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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