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Evening Standard - New Low In Property Porn

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I had a nauseating tube journey today after finding an article in the Evening Standard about estate agents own property gains. Here it is online:

http://www.homesandproperty.co.uk/property-news/news/how-climb-property-ladder-heres-how-three-estate-agents-did-it

If anyone ought to know how to scale the property ladder, it’s an estate agent, surely. It must be a badge of honour, having honed your skills in the property marketplace over many years, to acquire for yourself one of those desirable residences in a sought-after location.

Most estate agents begin their buying life much like the rest of us, without privilege or private income. However, they learn to property hunt, to stalk up-and-coming areas for a bargain, and — with a bit of good fortune, a willingness to take a risk and the knowledge of how to do a good refurb — many eventually reach the top of the property market.

Here’s how three of them did it.

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The HPI years, credit-expansion... no more boom and bust... so clever... counting the HPI smart gains, then double lump it all on non-owning savers again with rates floored and QE.

Looks like the McMansion EA has tried to sell it in the past. Bigger and better and bigger still, pillar-entrance McMansion-itis.

I've built a house fit for an oligarch

By: Cheryl Markosky

Published: Sun, July 8, 2012

331413_1.jpg

James and Jane Wyatt want to build a bigger family home

Wyatt describes the many business tycoons from Russia, Kazakhstan and the Ukraine as "always charming people but time-heavy", so you would think selling the seven bedroom spread built by him and his wife Jane, 45, for themselves and their three children, Victoria, 11, Edward, nine, and Charlie, seven, would not be a problem.

However, he lost out last summer when a deal fell through with the wife of an Abu Dhabi sheikh who wanted the house as a summer retreat. "We got all the way to agreeing the price. A survey was carried out but then it went cold. We are now having a proper bash at selling it."

Wyatt guides me around his £5.75million, 9,000 sq ft home bought for £1.36million in 2006. The Wyatts tore down a Sixties house and replaced it with this newer and grander version. This is the second big house the couple have built on the estate (they let the first one out) and erected it with the help of hotel designer Alexander James International.

in full http://www.express.c...for-an-oligarch

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I had a nauseating tube journey today after finding an article in the Evening Standard about estate agents own property gains. Here it is online:

http://www.homesandproperty.co.uk/property-news/news/how-climb-property-ladder-heres-how-three-estate-agents-did-it

They seem to have "done" it by borrowing huge amounts of money which they have yet to pay back. Wake me up when they actually own something.

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Then the property market crashed, leaving the couple with two mortgages. “We were quite nervous about whether we had done the right thing but fortunately we never had any void periods on the flat, which we let at £200 a week so it covered our mortage. We were all right,” says Shaun.

I really don't remember the market crashing in London!!. I suppose house prices stopped going up for a couple of years! They must have been really worried HPI wouldn't return! I wonder how they would cope with a real crash in prices? Oh, no need to worry about that, it can never happen in London!

His advice to others climbing the ladder is to buy somewhere they will enjoy living in, rather than treating house buying as simply an investment exercise.

Well, that is helpful advice. I really wanted to buy any old craphole in a area I hated living! Thanks Shaun for those words of wisdom!

While James’s ascent might seem spectacular it has been earned by regular house moves and a willingness to self-build and take on debt.

On to the 2nd couple. Yes, risk. The cornerstone of our economy. Close your eyes, stick your fingers in your ears, and bet everything on HPI!

He bought his first home at 21, only needing a five per cent deposit to get a mortgage, a process that was at the time “terribly easy”.

I didn't think HTB was about in 1987? :P

“A great way to make money is to buy property, or build your own, but it is never guaranteed. After the Virginia Water flat I bought with my brother I was completely bust but I kept on going.”

He thinks he was completely bust when he only made £8000 on a flat he sold in 1991?!

They made a fine profit on their flat, which they sold for £510,000 and started looking in Ealing where schools were good. They bought a four-bedroom semi for £680,000 and spent £300,000 extending into the loft and the garden. “We now have the home we want, and when we downsize there should be a bit over for a pension.

And of course the last couple will definitely be cashing in for their pension...... I wonder, who is going to be buying all of these pension proprieties?

“We did the right thing getting on the property ladder as soon as possible. Like so many people our needs changed and we were pushed on from being a young couple to becoming parents wanting space for a family. And we got there.”

Oh, and I forgot this classic line about getting on to the property ladder as soon as possible. When I was younger I couldn't because I didn't have the money. Now I have the money but too much sense. Boy, I must be dumb! What the hell am I going to sell for my pension!! :P

Edited by renting til I die

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:D

Start: a one-bedroom ex-council flat in Bethnal Green.

Finish: a smart two-bedroom period house in Victoria Park Village in east London, plus a buy-to-let flat.

Time taken: seven years.

In 2006 Shaun and Hanni spent £140,000 on an ex-local authority flat in Bethnal Green. Ideally they would have lived in Shoreditch but since they were priced out they opted for a cheaper neighbouring area, hoping the Shoreditch effect would ripple out —which it has.

Renovating the flat cost about £10,000. The couple did much of the work themselves and stuck to a strict budget, careful not to overspend on things such as kitchen units and tiles. They had seen renovations and knew what mattered to a sale.

Thanks to their hard work and a rising market, by 2007 the flat was worth £225,000 which meant they were able to remortgage. This helped them raise a deposit for a one-bedroom period conversion with a garden for their dog, in a nearby road. So they moved and rented out their ex-council home.

Then the property market crashed, leaving the couple with two mortgages. "We were quite nervous about whether we had done the right thing but fortunately we never had any void periods on the flat, which we let at £200 a week so it covered our mortgage. We were all right," says Shaun.

The couple married in 2011 and the following year, with the market picking up again, they moved once more, spending £370,000 on their current home.

They have since spent £60,000 on refurbishing it. “We do think it has gone up in value — some friends of ours recently moved in across the road and they paid £525,000 for a similar house which needs work,” says Shaun.

I put the sympathisers and excuse-givers for buyers top of the list as enemies of lower values. Top of the list above all the banks, Gordon Brown, everything. This is a lot of what you protect, with your "they just wanted a home and were lured into it, and couldn't expect a crash" not to mention locking in values for the majority of older outright and equity rich owners.

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With all the increased price that builders, plumbers and electricians add to a property when it is "done up", it is funny how these same property owners complain that the building trades are too expensive, and use Polish plumbers etc to reduce costs.

Yet they consider it reasonable to make several hundred grand from just sitting on their àrse.

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I had a nauseating tube journey today after finding an article in the Evening Standard about estate agents own property gains. Here it is online:

http://www.homesandproperty.co.uk/property-news/news/how-climb-property-ladder-heres-how-three-estate-agents-did-it

Yes, I saw this, sickening, but I think it's pretty standard fodder for the Standard. An awful lot of their income must come from property ads - there is so often a huge property section. With so many priced out commuters picking it up every day you would think they might shift their focus now and then.

Every property section seems to enjoy featuring some ghastly smug couple posing outside their £6M London house or Georgian rectory (+ of course lab and children called Toby and Matilda) achieved of course entirely down to their own superior cleverness.

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Yes, I saw this, sickening, but I think it's pretty standard fodder for the Standard. An awful lot of their income must come from property ads - there is so often a huge property section. With so many priced out commuters picking it up every day you would think they might shift their focus now and then.

Every property section seems to enjoy featuring some ghastly smug couple posing outside their £6M London house or Georgian rectory (+ of course lab and children called Toby and Matilda) achieved of course entirely down to their own superior cleverness.

Indeed. The one with the £6m house was quoted as saying that he only owned an estate agency and you are never going to make a fortune doing that. I bet in this market he is taking away seven figures a year from that business, but doesn't consider that a fortune because his property exploits have taken him up to the next level in his view.

This is further evidenced by his description of his first home as a "box" which he obviously feels is now far below him. Unfortunately, that house is probably £300k+ now and totally unaffordable for someone in his position at the time.

The problem is that the property market has favoured extreme risk-takers like this, and a lot of people seem to believe it will keep doing so.

The other quote I like is that buying a flat for £80k, spending £6k on it and selling it for £88k left him "bust". Another classic developer mistake of borrowing based on the place being worth 20% more in a years time and it actually only goes up 5%.

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Indeed. The one with the £6m house was quoted as saying that he only owned an estate agency and you are never going to make a fortune doing that. I bet in this market he is taking away seven figures a year from that business, but doesn't consider that a fortune because his property exploits have taken him up to the next level in his view.

This is further evidenced by his description of his first home as a "box" which he obviously feels is now far below him. Unfortunately, that house is probably £300k+ now and totally unaffordable for someone in his position at the time.

Not quite that much, but yeah

http://www.rightmove.co.uk/property-for-sale/property-42819100.html

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Indeed. The one with the £6m house was quoted as saying that he only owned an estate agency and you are never going to make a fortune doing that. I bet in this market he is taking away seven figures a year from that business, but doesn't consider that a fortune because his property exploits have taken him up to the next level in his view.

This is further evidenced by his description of his first home as a "box" which he obviously feels is now far below him. Unfortunately, that house is probably £300k+ now and totally unaffordable for someone in his position at the time.

He took over the family EA business.

I wouldn't have thought wealthy clients would find it that appealing the EA has a 'better' home than them. Better in their bubble-heads being newbuild McMansions, so many of which I find grotesque, showing off like some oiled-up gurning bodybuilder. I dream of RAF Tornados being scrambled to missile and obliterate such houses, to make way for 2 or 3+ nicely sized charming family homes to be built.

25 things...

Over the years James has seen the size of properties in this area grow considerably from an average 3-4,000 square feet to 5-6,000. Many of the older houses in the area have been demolished to make way for the newer in vogue ‘Surrey Mansion’.

The average price of a home for sale through Barton Wyatt today is £3 million. In 1987 the average price was closer to £100,000.

Barton Wyatt has seen a vast rise in demand for rental property in their area. Back in 1987 there were only 6 properties to let on the books, today there are over 150.

Barton Wyatt has seen a vast rise in demand for rental property in their area. Back in 1987 there were only 6 properties to let on the books, today there are over 150.

http://www.abpropertymarketing.co.uk/html/news_story.php?id=716

http://www.primelocation.com/homes-news/wentworth-house/

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Yes, I saw this, sickening, but I think it's pretty standard fodder for the Standard. An awful lot of their income must come from property ads - there is so often a huge property section. With so many priced out commuters picking it up every day you would think they might shift their focus now and then.

Every property section seems to enjoy featuring some ghastly smug couple posing outside their £6M London house or Georgian rectory (+ of course lab and children called Toby and Matilda) achieved of course entirely down to their own superior cleverness.

Yes, I also saw these vile creatures grinning back at me yesterday. This industry is really beginning to eat itself though when the only success stories you can find are other estate agents. It's a bit like reading amazon book reviews by friends of the author.

I've no interest in being on a property ladder. Happy to stay in one modest mortgage-free house pretty much forever. I'll only move if I have to.

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I found this piece staggering in its lack of insight.

I am an owner-occupier in my second house, which is worth a fair bit of money. That value can be broken down as, very roughly:

1 - money i've paid down, saved from earnings - 45%;

2 - unearned HPI from my first place - 10%;

3 - unearned HPI on the second place - 20%; and

4 - debt - 25%.

Any half-serious article about the 'ladder' would surely povide a breakdown of this sort.

If there hadn't been any HPI at all either inbetween my first and second purchase or subsequent to my second purchase, then my house would be 'worth' a lot less & I'd have less equity, but I'd still have the same house, and hardly any debt at all. It's just really obvious.

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The HPI years, credit-expansion... no more boom and bust... so clever... counting the HPI smart gains, then double lump it all on non-owning savers again with rates floored and QE.

Looks like the McMansion EA has tried to sell it in the past. Bigger and better and bigger still, pillar-entrance McMansion-itis.

Edited by HPC=dream

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This article is seriously annoying.

I'm bumping it so more people can be seriously annoyed. :)

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I had a nauseating tube journey today after finding an article in the Evening Standard about estate agents own property gains. Here it is online:

http://www.homesandproperty.co.uk/property-news/news/how-climb-property-ladder-heres-how-three-estate-agents-did-it

...I would ban them from the market ...and call it insider trading......especially if the deals are done through their own firms....footballers are not allowed to bet on outcomes of games....same thing.... :rolleyes:

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How to climb the property ladder: here's how three estate agents did it

26 February 2014

[..]The build was carried out during 2008 and 2009 — they lived in their buy-to-let house for the duration — and the result is a huge, 9,000sq ft family home with seven bedrooms and an annexe, valued at an estimated £6 million.

James is keen to point out that although they enjoyed favourable market conditions, he and Jane have “been through it” with their risk taking....

In fairness, that's how you sell houses, when they're not selling... lower the asking price, even when you live in 'one of the most expensive areas of the country'.

12/01/2015 21:48:21

Price changed: Guide Price £5,750,000 £4,950,000

http://www.rightmove.co.uk/property-for-sale/property-47971925.html

[..]What's really happening to house prices?

Last updated: Oct 31st, 2014

[..]James Wyatt, partner at Surrey estate agency Barton Wyatt, added: "Coming from one of the most expensive areas in the country, I can honestly say real buyers and sellers never ask about average prices. There is no such thing in this area. But a general price per square foot is often discussed now - this is a big change to 10 years ago when that sort of data was something talked about overseas but not in the UK."

http://www.moneywise.co.uk/news/2014-10-31/whats-really-happening-to-house-prices

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Looks like they bought the plot, on the ever higher reaching pursuit of the top + BTLs along the way, for £1,360,000 .. so that + building costs then; should be quite a lot of margin in asking price, at £4,950,000

Sale Date: 19 Jul 2006. Price Paid: £1,360,000
http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=24193989&sale=17319887&country=england

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