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Overheard a guy in his early 30s talking about his investments.

Between 2002-2006 he bought 11 rental properties with mortgages. Got into trouble on non-payment of rent on 2 of them: his rent guarantee wouldn't pay out and the letting agents couldn't help. He had to panic sell the other 9, and concluded that he had been naive and had bought the wrong sort of property. Then the local authority came knocking for £22k repayment of housing benefit fraudulently claimed and paid directly to the ladlord. He moved back in with parents - "embarrassing" - and told his part time girlfriend he could no longer see here. "I spent 18 months researching the market, figuring out the law on rent guarantees. Now I'm into purchase lease options. Got 31 of them. Mostly with people moving abroad who have difficulties selling".

That's all I heard.

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Overheard a guy in his early 30s talking about his investments.

Between 2002-2006 he bought 11 rental properties with mortgages. Got into trouble on non-payment of rent on 2 of them: his rent guarantee wouldn't pay out and the letting agents couldn't help. He had to panic sell the other 9, and concluded that he had been naive and had bought the wrong sort of property. Then the local authority came knocking for £22k repayment of housing benefit fraudulently claimed and paid directly to the ladlord. He moved back in with parents - "embarrassing" - and told his part time girlfriend he could no longer see here. "I spent 18 months researching the market, figuring out the law on rent guarantees. Now I'm into purchase lease options. Got 31 of them. Mostly with people moving abroad who have difficulties selling".

That's all I heard.

Sounds as though a purchase lease agreement could be of use to non landlords.

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Then the local authority came knocking for £22k repayment of housing benefit fraudulently claimed and paid directly to the ladlord.

HA HA! (and was that a typo?) I wonder if he made a profit in the end after selling.

Edited by doahh

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HA HA! (and was that a typo?) I wonder if he made a profit in the end after selling.

It was, but I decided to leave it. In 2002 he couldn't have been more than 20.

He reluctantly moved in with parents, so I guess break even at best.

I could do with more explanation of how purchase-leases are set up - anything up front from the guy buying the option?

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It might be a reason some big landlords divy up the propertys between the family. That way the HB clawback can't go round more than so many properties - and the same landlords avoid benefits people apparently now.

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It might be a reason some big landlords divy up the propertys between the family. That way the HB clawback can't go round more than so many properties - and the same landlords avoid benefits people apparently now.

I'm told they avoid HB tenants because they can easily fill the places with private renters. I'd need to see evidence on the rents etc.

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