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Trevor Werewolf

Anecdote: The Times Are A'changin' Mr Thick Gets Desperate!

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I've just had a call from my brother in England with a very amusing tale about an amateur BTL landlord we both know!

For want of a better title I shall call this rather smug and annoying bloke, 'Mr Thick'.

About four years ago, Mr Thick aquired a 'portfolio' (ha,ha,ha how pretensious!) of ten ex-council houses in the salubrious, crime ridden Northamptonshire dump of Corby - 100% mortgage on each property!

He told me at the time that 'He was going to make millions and would never have to work again'! Indeed, he packed in his job as a BT engineer to become a full-time landlord and 'man of leisure' about three years ago.

I also remember him saying something like "The banks love new entrepreneurs like me you know, they're falling over themselves to lend me money ... it's people like me,brave people with ideas who are the new breed of moneymakers in this country"!

Anyway, going back to the phone call. My brother bumped into a very glum looking Mr Thick yesterday.

Brother: "How's your property empire getting on then?

Mr Thick: "Property empire, Huh don't talk to me about that, I've just sold them all off"!

Brother: :Did you make a profit?

Mr Thick: You're joking! I've lost 10 grand on each one! To be honest I consider myself lucky to have lost so little, in a way I'm glad to be rid off them ....property's on the way out you know!

It turns out that the rent yield from each property was so poor, that he'd have been better off putting his money, sorry the banks, into a savings account! So after four years this ' property tycoon' has panicked and sold off the houses, losing a massive 100K in the process! He now has his own property up for sale at 450K presumably to pay off what he owes to the bank!

God knows how much total debt he must be in, because as I said earlier he packed his job in three years ago. Thinking about it now, I reckon he must have MEWED his own property and paid himself some sort of wage from it!

What makes this even funnier is that he's sold all the houses off to another amateur BTL mug, who no doubt will also get hammered!

How many more idiots are going to be in this situation?

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I couldnt help laughing...

""The banks love new entrepreneurs like me you know, they're falling over themselves to lend me money ... it's people like me,brave people with ideas who are the new breed of moneymakers in this country"!

The RISE AND FALL of Reginald Perrin.

These copycat entrepreneurs nearly always get into trouble, as the Johnnie-come-latelies

buy off the profit-making pioneers. In a moment of hubris, i tell myself: These toads will be

buying my Gold shares in a year or two.

"I didn't get where I am today by working out the yield before I bought the property"

"Yes, CJ"

Apologies to those too young to remember Reggie Perrin!

Edited by Casual Observer

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I saw this happening in the last crash when a colleague acquired a property portfolio in 1988/9 'worth' £1.2 million.

The problem was he was leveraged 80% debt to equity and by the early nineties he suffered a series of voids and massive cashflow problems on a portfolio now worth less than his borrowings. The banks re-possessed and within a few short months he was bankrupt.

I remember him saying 'one moment I thought I was a millionaire and the next I was bankrupt'.

The lessons of history are all there for those who are prepared to heed them.

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Guest Bart of Darkness

I didn't get where I am today by thinking."

http://www.mgnet.karoo.net/cjphrases.htm

I didn't get where you are today without knowing the night is darkest before the storm."

I didn't get where I am today by tearing money into small pieces!"

I didn't get where I am today by throwing money into the hands of overpaid lawyers.

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christ - corby is a property black hole.

the place has such a bad reputation that values in other nearby towns are negatively affected.

this is, of course, all relative: needless to say property is still insanely priced in relation to local incomes. <_<

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I couldnt help laughing...

""The banks love new entrepreneurs like me you know, they're falling over themselves to lend me money ... it's people like me,brave people with ideas who are the new breed of moneymakers in this country"!

The RISE AND FALL of Reginald Perrin.

These copycat entrepreneurs nearly always get into trouble, as the Johnnie-come-latelies

buy off the profit-making pioneers. In a moment of hubris, i tell myself: These toads will be

buying my Gold shares in a year or two.

DrBubb, I believe you are an American.

How do you know of Reginald Perrin? Since it's allegorical and ironic I wouldn't have thought it would be understandable 'over there'.

Edited by BoredTrainBuilder

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About four years ago, Mr Thick aquired a 'portfolio' (ha,ha,ha how pretensious!) of ten ex-council houses in the salubrious, crime ridden Northamptonshire dump of Corby - 100% mortgage on each property!

How the hell did he manage to make a loss. Some prices in Corby have not only doubled, but some have quadrubled. How can anyone possibly lose. Seriously, I cannot believe anybody made a loss on anything if they bought before 2002. Not ever found one example of this, not ever.

Edited by dave

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I've just had a call from my brother in England with a very amusing tale about an amateur BTL landlord we both know!

For want of a better title I shall call this rather smug and annoying bloke, 'Mr Thick'.

About four years ago, Mr Thick aquired a 'portfolio' (ha,ha,ha how pretensious!) of ten ex-council houses in the salubrious, crime ridden Northamptonshire dump of Corby - 100% mortgage on each property!

He told me at the time that 'He was going to make millions and would never have to work again'! Indeed, he packed in his job as a BT engineer to become a full-time landlord and 'man of leisure' about three years ago.

I also remember him saying something like "The banks love new entrepreneurs like me you know, they're falling over themselves to lend me money ... it's people like me,brave people with ideas who are the new breed of moneymakers in this country"!

Anyway, going back to the phone call. My brother bumped into a very glum looking Mr Thick yesterday.

Brother: "How's your property empire getting on then?

Mr Thick: "Property empire, Huh don't talk to me about that, I've just sold them all off"!

Brother: :Did you make a profit?

Mr Thick: You're joking! I've lost 10 grand on each one! To be honest I consider myself lucky to have lost so little, in a way I'm glad to be rid off them ....property's on the way out you know!

It turns out that the rent yield from each property was so poor, that he'd have been better off putting his money, sorry the banks, into a savings account! So after four years this ' property tycoon' has panicked and sold off the houses, losing a massive 100K in the process! He now has his own property up for sale at 450K presumably to pay off what he owes to the bank!

God knows how much total debt he must be in, because as I said earlier he packed his job in three years ago. Thinking about it now, I reckon he must have MEWED his own property and paid himself some sort of wage from it!

What makes this even funnier is that he's sold all the houses off to another amateur BTL mug, who no doubt will also get hammered!

How many more idiots are going to be in this situation?

awooga awooga.

can we please stop this cr@p ?

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How the hell did he manage to make a loss. Some prices in Corby have not only doubled, but some have quadrubled. How can anyone possibly lose. Seriously, I cannot believe anybody made a loss on anything if they bought before 2002. Not ever found one example of this, not ever.

I'm guessing he didn't bother to check what these places would rent for. If they are in some sink area, they may well have been empty half the time and only bringing in dreadful rents. Imagine paying the mortgage on several empty properties - total void-fest.

Many BTL idiots seem to think a fair rent is their mortgage paid and a profit on top - no matter that noone's going to want to live in a pit when there's cheaper places in better areas down the road.

There's still a few places for rent round here that were for rent when we moved four months ago! If that's happening to BTL newbies, they will be using thousands all over the place.

Edited by CrashedOutAndBurned

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We have had... Six years of income spent in 5 years,

thanks to aggressive MEW-ing on Property while its price rose.

NOW we shall see maybe, 5 years of income spent in 6 years,

to restore borrowing & savings to more normal levels.

it doesn't really sound like a big deal when you put it like that.

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I remember hearing of a documentary film-maker who, having made a documentary in Corby many years ago, was threatened with death if she ever returned. It was during the Thatcher years after Thatch had closed down Corby steelworks.

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I have a question. Why do upmystreet charts invariably start from 1995?

My personal theory on the private investor is that he never gets involved until the professional can make a case for it. Wanna guess when that might be? When they can show him a chart at least 5 years long with no serious downside included.

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He told me at the time that 'He was going to make millions and would never have to work again'! Indeed, he packed in his job as a BT engineer to become a full-time landlord and 'man of leisure' about three years ago.

I also remember him saying something like "The banks love new entrepreneurs like me you know, they're falling over themselves to lend me money ...

Well, I guess he'll just have to take advantage of the excellent employment environment we have at the moment in which engineering firms are falling overthemselves to employ people who have been out of the game for 3 years. O hang on.....

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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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