Jump to content
House Price Crash Forum
Sign in to follow this  
The Knimbies who say No

Telegraph "fame And Fortune" Column

Recommended Posts

....that:

That first rung on to the property ladder was key to my financial success. After 18 months I sold my first house in Sussex for double the amount that I paid for it, and then I bought a house in Hammersmith. I have always invested in property. I had a canny buy about 20 years ago. I bought a field on a silent bid auction, which had a house adjacent to it, which was under offer at the time. The prospective buyers pulled out when they found I wouldn’t sell them part of the field so I then bought that house, which then had 11 acres, and which has been a wonderful family home ever since.

but this started because:

In about 1979 I made it on to the property ladder, but at some cost. I was a freelance writer at the time, and the only way I could obtain a mortgage was by paying a large amount of money to a man I met at a party who said he could get a mortgage for anyone.

I literally had to stalk him to get him to push through a deal for a mortgage with a well-known building society. My repayments were set at 17pc. I was, and still am, financially naïve, and I had no idea of the implications of this until I had to face the reality of paying them. As I had bribed my way into the mortgage, the powers that be didn’t check to see if I could support it. I had never earned in a single month as much as my repayments were. I had to work incredibly hard, get a lodger and I just about got by.

but some types of fraud are bad, kids:

Choose your accountant wisely. I was recommended one right at the start of my freelance career, and unfortunately for me he was a crook. Five years after hiring him, I was investigated by the Inland Revenue. It was only then that I discovered that he hadn’t submitted my accounts or paid them any money, despite me believing he was doing all that. The man was struck off the professional register. It has left me somewhat phobic about money. Luckily I now have an accountant whom I trust implicitly.

I like reading this feature, as it generally confirms that much of the financial success of people of a certain age is entirely down to HPI, even famous types. I've nothing against Goolden, in fact I enjoyed watching the TV shows she was on back in the day.

Edit, here's the link, apologies:

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/10579102/Jilly-Goolden-Invest-in-wine-Its-something-you-drink.html

Edited by The B.L.T.

Share this post


Link to post
Share on other sites

If they could just about 'make it' with rampant HPI, then how on earth is anybody supposed to make it now? As they not only have to pay the people who 'made it' what they 'made', they also have to pay the people who 'made it' their pensions and also put enough money away to 'make it' without relying on rampant HPI and a pension of their own, or job security, or wage inflation, or ....

Does not compute....Fizz...Bang!

Share this post


Link to post
Share on other sites
After 18 months I sold my first house in Sussex for double the amount that I paid for it

Quote of the century!

Edited by erat_forte

Share this post


Link to post
Share on other sites

Quote of the century!

people always forget the other part of the equation...the house they moved to ALSO cost twice as much as when she bought the first one.

Share this post


Link to post
Share on other sites

This is not so much to do about how well others did, how circumstances byound their control made them feel wealthy, doubled their money just for living in a certain property......for example; born in the right place at the right time, to the right people, attending the right school, meeting the right people,securing the right job many thousands of others could do just as well or better.......More to do with how many more people will never have the same opportunities..... Not what people have got, more about what people have not got and will never have. ;)

Share this post


Link to post
Share on other sites

in 19XX I joined a fast moving pyramid scheme, my returns were looking good and I was borrowing heavily against my expected returns., I was almost at the top of he pyramid and about to cash in when.....

It's not what she is saying but it's what I am hearing.

Share this post


Link to post
Share on other sites

people always forget the other part of the equation...the house they moved to ALSO cost twice as much as when she bought the first one.

I don't think that is the case.

For last 3 decades there has been a concept of 'up and coming' zones and unimproved properties.

So several boomers I know have upgraded and moved on or bought in an adjacent area that hasn't been ramped.

Those situations are now very rare - certainly round here under-developed property now seems to be priced as if it was developed.

Share this post


Link to post
Share on other sites
After 18 months I sold my first house in Sussex for double the amount that I paid for it

or

After 18 months, someone paid double the amount I paid for my house in Sussex - I also had to pay significantly more than I should have for the next house I bought. Meanwhile, the banks rubbed their hands with glee.

Share this post


Link to post
Share on other sites

See doesn't say this either...but this is what I read:

"I would like to thank all those people younger than me for for paying way over the odds for their house and bumping up the price of mine to economy collapsing levels which has allowed me to have a fantastic life style while you are sat in your house, in the cold. I'm aright jack.".

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

If they could just about 'make it' with rampant HPI, then how on earth is anybody supposed to make it now? As they not only have to pay the people who 'made it' what they 'made', they also have to pay the people who 'made it' their pensions and also put enough money away to 'make it' without relying on rampant HPI and a pension of their own, or job security, or wage inflation, or ....

Does not compute....Fizz...Bang!

And to pay for 30+ years of mortgage fraud, houses to go to people who couldn't have actually afforded it. Who also cheer future HPI and their profit. Same sort of people who tell the young they can't go wrong with property.

Many more recent eager liars for mortgages, who paid insanity prices for their homes, with jumbo mortgages, who've now been saved from losing "their homes" with extraordinary stimulus and base rates cut and held so low for what seems like 6 years. At the cost to non-owners and would be honest upsizers.

Admissions of paying big bribes to get mortgage in 1979, when income way below mortgage repayments. I don't know if that could be considered mortgage fraud but it sounds like it to me.

http://www.cps.gov.uk/legal/s_to_u/sentencing_manual/obtaining_mortgage_fraud/

If a person obtains a mortgage and, when applying for it, has inflated their salary,(ie lied) they may well be guilty of an offence contrary to Section 15A Theft Act 1968 which provides a person is guilty of an offence if by any deception he dishonestly obtains a money transfer for himself or another.

The money transfer is the mortgage money going into his bank account.

The deception is his lie about his salary.

If the bank say they would not have loaned him the money if they had known his real salary then there is a deception in law. Providing, of course, the bank make a complaint to the police. No complaint=no conviction.

Share this post


Link to post
Share on other sites

And to pay for 30+ years of mortgage fraud, houses to go to people who couldn't have actually afforded it. Who also cheer future HPI and their profit. Same sort of people who tell the young they can't go wrong with property.

Many more recent eager liars for mortgages, who paid insanity prices for their homes, with jumbo mortgages, who've now been saved from losing "their homes" with extraordinary stimulus and base rates cut and held so low for what seems like 6 years. At the cost to non-owners and would be honest upsizers.

Admissions of paying big bribes to get mortgage in 1979, when income way below mortgage repayments. I don't know if that could be considered mortgage fraud but it sounds like it to me.

http://www.cps.gov.uk/legal/s_to_u/sentencing_manual/obtaining_mortgage_fraud/

What's the statute of limitations on mortgage fraud? If greater than 35 years then I think that she is still liable, and a 'concerned citizen' making a complaint to the police with all the evidence available would mean that they would be duty bound to investigate it.

Share this post


Link to post
Share on other sites

What's the statute of limitations on mortgage fraud? If greater than 35 years then I think that she is still liable, and a 'concerned citizen' making a complaint to the police with all the evidence available would mean that they would be duty bound to investigate it.

+1

Share this post


Link to post
Share on other sites

See doesn't say this either...but this is what I read:

"I would like to thank all those people younger than me for for paying way over the odds for their house and bumping up the price of mine to economy collapsing levels which has allowed me to have a fantastic life style while you are sat in your house, in the cold. I'm aright jack.".

Good summary of the situation, the elderly reaping the reward of being at the top of the Ponzi and being able to take disproportionate rewards on the backs of younger people.

The Pratts murder tragedy kind of highlights this for me.

Aged 60 and 62, they were already retired and owned a £700,000 house in Warwick. Moreover, they could afford to fund a world seafaring adventure that would once have been the preserve of the Crown, Sir Francis Drake style, but now is doable by early retired boomers. There may be other factors in play for this level of wealth other than their NHS and financial adviser roles, but their age is likely to be one part of winning life's lottery.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

Good summary of the situation, the elderly reaping the reward of being at the top of the Ponzi and being able to take disproportionate rewards on the backs of younger people.

The Pratts murder tragedy kind of highlights this for me.

Aged 60 and 62, they were already retired and owned a £700,000 house in Warwick. Moreover, they could afford to fund a world seafaring adventure that would once have been the preserve of the Crown, Sir Francis Drake style, but now is doable by early retired boomers. This for being an NHS adviser and financial adviser.

We viewed a house last year and the place was a mess, the sellers asking way over the odds but desperate to sell ( which it seems they have done !!! ) but anyway, our neighbour knew the owners very well. The man was an ex-council bod, lived way beyond his means and was a right jack the lad it seems, according to my neighbour he was in debt up to his eye-balls.

It looks like someone has bailed them out.

For now.

Share this post


Link to post
Share on other sites

I've written on here before about the Telegraph's Fame and Fortune feature. It draws from a great variety of people in the public eye, and my research over three years or so suggest that around two thirds of those featured are multiple property owners, and put property as their best investment.

The F&F feature on the boss of Iceland Foods a couple of weeks back was very typical..

How much property do you own?

My main residence is Broxton Old Hall, a Grade II listed Elizabethan manor house in Cheshire, which I bought for £750,000 in 1985. It was in poor repair, so I knocked it down and rebuilt it. The renovations cost a lot more than I budgeted for.

I also have a holiday home in Majorca and a house in Chelsea, which I bought in 2002. We hardly use it, but it’s probably the best investment I’ve ever made because it has trebled in value.

Edited by juvenal

Share this post


Link to post
Share on other sites

I've written on here before about the Telegraph's Fame and Fortune feature. It draws from a great variety of people in the public eye, and my research over three years or so suggest that around two thirds of those featured are multiple property owners, and put property as their best investment.

I remember you making that observation. Given that these people are a cross-section of the most successful of their generation then it really is saying something profoundly disturbing about the UK.

Share this post


Link to post
Share on other sites

I remember you making that observation. Given that these people are a cross-section of the most successful of their generation then it really is saying something profoundly disturbing about the UK.

It says that if you recklessly leveraged yourself you did well and have a pat on the back

Share this post


Link to post
Share on other sites

It says that if you recklessly leveraged yourself you did well and have a pat on the back

Goolden's 18 month 100% HPI is what is responsible for the sage advice of borrowing up to your neck. Doesn't really work thesedays though, should be "get the smallest place that meets your needs" rather than "the largest you can afford".

Old habits die hard.

edit name.

Edited by The B.L.T.

Share this post


Link to post
Share on other sites

Don't blame me if you punch your computer.

That comes when the market crashes, the boomers can't get out and we find out none have paid in to a pension fund as that's what the houses were for - so we get fleeced again to fix that.

Share this post


Link to post
Share on other sites

See doesn't say this either...but this is what I read:

"I would like to thank all those people younger than me for for paying way over the odds for their house and bumping up the price of mine to economy collapsing levels - "financed" by LIAR LOANS - which has allowed me to have a fantastic life style while you are sat in your house, in the cold. I'm aright jack.".

+1 :rolleyes:

& corrected.

Edited by eric pebble

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   215 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.