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Another Str Story Gone Bad?

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If not, it's a good example of what can happen to cash on tap:

http://forums.moneysavingexpert.com/showthread.html?t=118217

Hi i am really hoping you guys can help. Ive been on the site for years now under a diff name but am so ashamed i dont want to post under it.

i did have 50k+ in my bank 18 months ago but i have gambled the lot and feel so stupid. I have now closed all betting accounts and have not used them for a month however i am now in debt and dont know what to do for the best. My debt may seem small to some but it is making me ill. Not helped by the fact i am too ashamed to tell anyone i lost all my money.

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If not, it's a good example of what can happen to cash on tap:

http://forums.moneysavingexpert.com/showthread.html?t=118217

Not fundamentally different from any BTL investor who has bought off-plan 2 bed properties for say 400k in the last couple of years or someone who has MEWed 10% on a £500k property. Both will have sustained broadly the same loss.

Hardly a reason not to STR.

You can gamble on credit with any spreadbetting bookmaker and the fact you own a property will result in a much fatter credit line.

Bit desperate TTRR.

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If not, it's a good example of what can happen to cash on tap:

http://forums.moneysavingexpert.com/showthread.html?t=118217

where does it say anything about STR ?

pick a story, any story will do, and twist it as a dig towards STR's ?

how many forums do you spend all your time on TTRTR ?

methinks a real landlord just wouldn't have the time, they'd be too busy looking after their interests....

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Guest Charlie The Tramp

If not, it's a good example of what can happen to cash on tap:

Thanks for that TTRTR you have saved me from temptation. ;)

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This is not an STR gone wrong. This is a gambling story. Happen to anyone who has a large chunk of money on tap. Im sure there are lots of stories of MEWers who gambled it all away.

That's clutching at straws at the very best.

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I share TTRTR's concerns.

I know a particular person who would never be able to hang onto that amount of cash if they STR'd.

For them STR is a far more risky strategy than most.

There are thousands of people in this country who can't manage a credit card.

They won't be able to manage cash in the bank either.

And having 50 or 100k sitting in the bank is a risk in itself.

When I asked a Natwest employee what would happen if their bank went t!ts up, they struggled to hide a snigger.

Well it nearly happened in the 70's, and their little reassurance over the phone wouldn't save anyone's cash-pile in a bank bust.

Needless to say my money's no longer wih them.

Edited by BandWagon

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I share TTRTR's concerns.

I know a particular person who would never be able to hang onto that amount of cash if they STR'd.

For them STR is a far more risky strategy than most.

There are thousands of people in this country who can't manage a credit card.

They won't be able to manage cash in the bank either.

And having 50 or 100k sitting in the bank is a risk in itself.

When I asked a Natwest employee what would happen if their bank went t!ts up, they struggled to hide a snigger.

Well it nearly happened in the 70's, and their little reassurance over the phone wouldn't save anyone's cash-pile in a bank bust.

Needless to say my money's no longer wih them.

If you have less than broadly 40k with a bank you are covered by law should that bank go bust. You could therefore spread your cash across several banks. You may say what if they all go bust? In which case how much do you think property will be worth? I will simply be happy to have my gun cabinet fully loaded.

As said previously what difference if they had MEWed rather than STRd? They would then have an increased debt on a currently depreciating asset. This would be followed by negative equity and ultimately repossession.

A salutary story but totally irrelevant to the HPC issue.

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If you have less than broadly 40k with a bank you are covered by law should that bank go bust.

Of course if any significant bank were to go bust, the odds of a payout of the vast billions of pounds involved would be slim...

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As said previously what difference if they had MEWed rather than STRd? They would then have an increased debt on a currently depreciating asset. This would be followed by negative equity and ultimately repossession.

A salutary story but totally irrelevant to the HPC issue.

I disagree. People are highly unlikely to MEW all of the equity in their properties.

And as I have said, many people can't handle a credit card, let alone £100k in a cash account.

There will be STR tragedies, anyone considering this option needs to think very carefully.

Edited by BandWagon

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TTRTR, you titled this thread "Another STR story gone bad". As others have already pointed out, this is not an STR story, it is a story about someone gambling away their money. It may very well be that this person became addicted to gambling, which is a recognised phsycological disorder.

So why is it "another" STR story gone bad? Where are all the other STR stories gone bad? STR is and has been a very good and save strategy for the past two years, as it looks in gains made in the property bubble and moves them either to the save haven of cash or into other assets deliverying higher returns than property will from now on. It is almost impossible for STR to go bad, except in two scenarios (1) the person fritters away the money; or (2) property continues rising at 20% per year. I think anyone with the financial clout to STR is very unlikely to fall victim to the first scenario, and we all know that the second is not going to happen.

In fact, your argument of "cash in the bank will be frittered away sooner or later" is more likly to apply to the MEW hordes, who will regard their additional loan taken out as a windfall that can be spent on 4WDs and holidays.

As for my STR fund: The convenient fact of having a pile of cash in the bank has allowed me to put large sums of money into VCTs this year and will allow me to pile money into a SIPP next year. By Summer 2006, I will have 40% of that money back from the taxman, having made a nice 66.6% return courtesy of Gordon Brown and providing me with a nice tax free income out the VCTs in a few years time and a handsome pension fund for when I am 55. Who knows, my SIPP might even pick up one of those BTL flats at depressed prices in 2009. I would never have been able to do this without the large amount of cash in my STR fund. I appreciate this works well for my specific circumstances, for I am a higher rate taxpayer. But as I said, those with the clout to STR will be conversant with financial matters enough to know how to make the best of their STR fund.

There is not one single real "STR story gone bad", but there are already many MEW and BTL stories gone bad, and there will be many more in the future.

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I disagree. People are highly unlikely to MEW all of the equity in their properties.

And as I have said, many people can't handle a credit card, let alone £100k in a cash account.

There will be STR tragedies, anyone considering this option needs to think very carefully.

I agree to a certain extent. There are people out there that can't handle a credit card and thus shouldn't be trusted with £100k in STR deposit. However, STR is a fairly niche thing to do... I would expect (pure conjecture) that people that STR are on average financially astute and are not the type to gamble it all away.

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Guest Charlie The Tramp
There is not one single real "STR story gone bad", but there are already many MEW and BTL stories gone bad, and there will be many more in the future.

I would guess that some of the big MEWers 100k+ have used it for that holiday home in Spain, and the fact there are 150,000 illegaly built properties in the Alicante province alone, must be a great worry seeing the Authorities beginning to demolish these properties without compensation.

The Dream Turns Sour

The Thread

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I am not sure how this equates to property, its stupid to gamble in any point. I have known people to gamble money they don't have and resulted in property/collateral being repossessed. Re: 50K its eay to loose being speculative on anything shares/buisness/property.

A tip with forthcoming global recession (this is the big one folks 90-95 was a holiday in the park)

1) Get income protection to cover redundancies.

2) Get rid of highly leveridged property e.g if struggling now imagine in a couple of years.

3) If cash in the bank checked its covered by the Government in case of bank crashing. Some banks are only insured for upto certain amounts

4) Stock sell, learn how to short the market(e.g make money on a downward market)

5) Read up on previous recessions and how to survive them

6) Do a household budget Money coming in should be greater than Money going out

7) learn how to pray

http://www.aireview.com/index.php?act=view&catid=6&id=2970

Good Luck

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I am not sure how this equates to property, its stupid to gamble in any point. I have known people to gamble money they don't have and resulted in property/collateral being repossessed. Re: 50K its eay to loose being speculative on anything shares/buisness/property.

A tip with forthcoming global recession (this is the big one folks 90-95 was a holiday in the park)

1) Get income protection to cover redundancies.

2) Get rid of highly leveridged property e.g if struggling now imagine in a couple of years.

3) If cash in the bank checked its covered by the Government in case of bank crashing. Some banks are only insured for upto certain amounts

4) Stock sell, learn how to short the market(e.g make money on a downward market)

5) Read up on previous recessions and how to survive them

6) Do a household budget Money coming in should be greater than Money going out

7) learn how to pray

http://www.aireview.com/index.php?act=view&catid=6&id=2970

Good Luck

Yep, I've read Prechter's "Conquer the Crash".

But I still think the recession will be caused by the housing bust.

ps, 1 above should be: Pay off all outstanding debt.

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Of course if any significant bank were to go bust, the odds of a payout of the vast billions of pounds involved would be slim...

Not at all. Try to distinguish between deposit protection and fraud.

If you believe that the High Street banks are innately fraudulent then we can't have much of an exchange of views but realistically the money will be in assets in some form.

The deposit protection is there to ensure continued faith in the banking system. Failure of the Government to honour the legislation would lead to a collapse in the system. Cue my 12 bore.

Are you keeping your cash under the mattress Mark? Or gold coins?

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Failure of the Government to honour the legislation would lead to a collapse in the system.

So if, say, Natwest went bust owing its depositors 100,000,000,000 pounds, where do you think that money is going to come from?

Will the government just magic it out of thin air? I guess it's a possibility, but throwing another hundred billion of cash into the economy would certainly be harmful to the pound and the government's reputation internationally. That leaves a hundred billion in borrowing, a hundred billion in increased taxes (most of which would come from the very people they'd be 'insuring'!) or simply not paying.

Anyone who expects the government to pay out if a major bank goes bust is extremely optimistic... particularly as it would probably be the result of a systematic failure that would take down the entire banking and fiat currency scams in any case.

Edited by MarkG

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I disagree. People are highly unlikely to MEW all of the equity in their properties.

And as I have said, many people can't handle a credit card, let alone £100k in a cash account.

There will be STR tragedies, anyone considering this option needs to think very carefully.

Yep all those new Range Rover Sports plasma TVs etc are paid out of salaries!!

If you STR you actually have the money - its yours. If you dick it that's your problem.

Come on Bandwagon - are Freedom Finance/ Ocean Finance/ Homeowner Direct etc etc just advertising because they like to? No because an awful lot of people view the equity in their home as an easily accessible deposit account.

You can get a mortgage from NR for 125% LTV for goodness sake!!

So if, say, Natwest went bust owing its depositors 100,000,000,000 pounds, where do you think that money is going to come from?

Will the government just magic it out of thin air? I guess it's a possibility, but throwing another hundred billion of cash into the economy would certainly be harmful to the pound and the government's reputation internationally. That leaves a hundred billion in borrowing, a hundred billion in increased taxes (most of which would come from the very people they'd be 'insuring'!) or simply not paying.

Anyone who expects the government to pay out if a major bank goes bust is extremely optimistic.

Come on Mark this is pretty basic stuff.

In your scenario where has the £100bn physically gone? Have they magic'd it INTO thin air? Have mad Natwest employees been burning £20 notes in branch incinerators?

There will be a proportion recovered and the balance will be met by both the government and the other High St banks.

Did you see how much RBS and HSBC made last year?!

Still interested to know where you are keeping your money?

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Come on Mark this is pretty basic stuff.

Indeed, so it's odd that you can't answer my question. Where will all those billions of pounds of government money come from?

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Guest Charlie The Tramp

Indeed, so it's odd that you can't answer my question. Where will all those billions of pounds of government money come from?

Would not the failed bank`s debtors be rigorously pursued by the administrators under government pressure.

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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% +
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      • up 5%



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