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It's So Frustrating...

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I have been tracking the progress of a mate of mine who has been renting on the same road as me, but has wanted to buy for some time. He knows my views and took them on board, but big 'nesting' pressure from his girlfriend has taken its toll and they began looking seriously into buying 6 months ago.

Their landlord, who owns a whole building of flats, put the lot up for sale and offered them first refusal on theirs but they didn't take it, prefering to look around instead.

6 months on and my friend has just told me that they have not found anywhere they like enough and are now offering FULL ASKING PRICE to their landlord for the place they're in!

I was visibly upset for him when he told me - he even averted his eyes as he spoke. I wanted to shake him and say: "Why do you think it's sat on the market for months with no interest?! You muppet!!!"

The Landlord is laughing - he knows the market has had its day and wanted to dump his stock. He's shifted his debt, made a handsome profit and saddled my friend with an overpriced, modest flat and a mortgage well in excess of his rent.

I am sure my pal is already looking at a 10%+ loss on his investment considering it took so long to sell at full price. Fool, Fool, Fool!!! :angry:

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I have been tracking the progress of a mate of mine who has been renting on the same road as me, but has wanted to buy for some time. He knows my views and took them on board, but big 'nesting' pressure from his girlfriend has taken its toll and they began looking seriously into buying 6 months ago.

Their landlord, who owns a whole building of flats, put the lot up for sale and offered them first refusal on theirs but they didn't take it, prefering to look around instead.

6 months on and my friend has just told me that they have not found anywhere they like enough and are now offering FULL ASKING PRICE to their landlord for the place they're in!

I was visibly upset for him when he told me - he even averted his eyes as he spoke. I wanted to shake him and say: "Why do you think it's sat on the market for months with no interest?! You muppet!!!"

The Landlord is laughing - he knows the market has had its day and wanted to dump his stock. He's shifted his debt, made a handsome profit and saddled my friend with an overpriced, modest flat and a mortgage well in excess of his rent.

I am sure my pal is already looking at a 10%+ loss on his investment considering it took so long to sell at full price. Fool, Fool, Fool!!! :angry:

You tried your best, there was nothing else you could have done. :(

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If they haven't exchanged, you can give him some time to cool off and reconsider by guzumping him and then pulling out before exchange.

What are friends for?

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Maybe when he sees the size of the mortgage payments he will see sense.

This sort of thing really does make me angry. Its not the BTLs who are really going to get shafted but our friends who get suckered into FTBing by the VI media reports.

We try our best to talk them out of it but when you've got daily soft landing/housing market stabilises etc reports what can you do.

The problem is that so many of the so called "experts" really seem to know Fxxx all about the market beyond "it went for £X 18months ago". Anybody who says different is laughed off in the media as a "doomster".

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What a tit. Dont think 'I told you so' will go down too well in future. I've got a friend who made the same mistake despite my protestations. When he chats to me about prices now, its best to swiftly change the subject back to 'Susan Kennedy, would you or would'nt you' or 'Do Tesco's do their own brand cheese coleslaw?'

Edited by bob monkhouse

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What a tit. Dont think 'I told you so' will go down too well in future. I've got a friend who made the same mistake despite my protestations. When he chats to me about prices now, its best to swiftly change the subject back to 'Susan Kennedy, would you or would'nt you'

:lol::lol::lol:

No, I won't be saying 'I told you so' - I fear I won't need to. The only thing I can say in his defence is that he's too young to remember the last crash. He's never really seen house prices go down before, only up, up, up...

When you tell people like this that prices are on the way down, they just don't believe you. Or don't WANT to believe you. Like I said, frustrating...

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If they haven't exchanged, you can give him some time to cool off and reconsider by guzumping him and then pulling out before exchange.

What are friends for?

yes quite,why not tell your mate to tell the landlord:

I thought I was in a position to buy but the banks have been removing the highly discounted mortgages so now I cannot afford........unless you give me 10% off asking.

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:lol::lol::lol:

No, I won't be saying 'I told you so' - I fear I won't need to. The only thing I can say in his defence is that he's too young to remember the last crash. He's never really seen house prices go down before, only up, up, up...

When you tell people like this that prices are on the way down, they just don't believe you. Or don't WANT to believe you. Like I said, frustrating...

My friend bought a BTL in January, offered the full asking price, didn't even attempt to negociate. She has tenants, but they don't cover the mortgage. Her husband has just lost his city job and is soon going to struggle to subsidise the rent.

She is also using her brother-in-laws mortgage (so they don't have to get an expensive BTL mortgage) and was very concerned today by this article in the BBC.

I will of course not be saying 'I told you so', but strangely she is saying this to me. She thibks that because she has tenants she has cracked it.

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Guest muttley

Red- the thread title sums it up.But the SS House Price Crash cannot sail until the last fool is on board.

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a mate is thinking of buying next year, ive told him about this site, but he's being chatting to his gran and how property she's bought has always gone up etc :rolleyes: i said to him 'its up to you, but dont say i didnt warn you' :(

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a mate is thinking of buying next year, ive told him about this site, but he's being chatting to his gran and how property she's bought has always gone up etc :rolleyes: i said to him 'its up to you, but dont say i didnt warn you' :(

I had the same comment made by a colleague..

the properties have always gone up blah blah...

yes.. now we are at a massive peak they have..

I pointed out that taking inflation into account there are times when they have always gone down..

he didn't undersand.

mind you he has a £16,000 salary and £145000 interest only debt.. He talks about inflation that will make his debt small enough so he can pay capital..

What inflation...? I say...

there is always inflation.. (smug grin)

how on gods green eath can you be prepared to borrow that amount and not even take a briief look at the government, the Bank of englands and the MPC's inflationary policy.

How can you not be aware of it..

this bozo has no way of earning enough money for this property.. to ever pay of capital..

He cycles 15 miles to work.. so he is fitter then me.. so he will live longer..

christ knows where.

he needs a lodger just to cover an intrest only mortgage.. and still can't afford any transport to work..

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mind you he has a £16,000 salary and £145000 interest only debt.. he needs a lodger just to cover an intrest only mortgage.. and still can't afford any transport to work..

Are you serious? :blink: Who the hell offered him a loan of that size on that salary. Even a back street loan-shark would baulk at saddling a "client" with that sort of debt

Edited by Europa

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I had the same comment made by a colleague..

the properties have always gone up blah blah...

yes.. now we are at a massive peak they have..

I pointed out that taking inflation into account there are times when they have always gone down..

he didn't undersand.

mind you he has a £16,000 salary and £145000 interest only debt.. He talks about inflation that will make his debt small enough so he can pay capital..

What inflation...? I say...

there is always inflation.. (smug grin)

Maybe, but exactly where you don't need it, like petrol, utilities, council tax and lots of other things magically excluded or weighted out of the CPI figures, that sort of inflation combined with low wage inflation is worse than no inflation at all, in terms of debt it's obviously worse than roaring 'real' inflation with a full wage-price spiral.

This guy is a lodger in his own property, look at that income multiple, talk about turning a blind eye!

Edited by BuyingBear

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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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