Jump to content
House Price Crash Forum
spyguy

More Btl Articles In The Telegraph -- Merged

Recommended Posts

This is totally fcking nuts:

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11371820/Will-income-from-a-750k-buy-to-let-empire-pay-for-our-three-babies.html

'Telegraph Money readers Michael Gilden and his girlfriend Natalie are in their 30s and ready to start a family.

They are planning to have up to three children over the next few years – a move they know will hurt their bank balance.

The pair are based in London and have built successful careers in the arts. Michael is a house music producer who also has a full-time job as a postman, while Natalie is a self-employed sculptor who spends her days crafting intricate headwear.

They plan to leverage their income to the maximum to build a buy-to-let (BTL) empire to fund their babies. They hope this will provide a steady income stream of £2,000 a month within two years so that Michael can give up his job as a postman and both can focus on their creative careers without worrying about paying the bills. He also has a small £20,000 share portfolio that he would be willing to liquidate to help with this plan.'

What do you find the most unbelievable - that a bank would lend to them, or that they can actually read?

Has the Telegraph finally jumped the shark and become the Daily Express with a Business section?


Share this post


Link to post
Share on other sites

I think we should all learn how to make a BTL empire with no money down.

The Whole Nation could give up work.

Share this post


Link to post
Share on other sites

What complete and utter t****. The reflation from 2010 needs to be given back too, in prime. Manchester, on the wider sense, had flat HPI last year, and I'd love to see rents weaken. BTL ******* economy.

They live in Hackney in a property worth around £600,000 that Michael bought in 2010 for £320,000. However, they are about to downsize. In doing so, Michael will release £400,000 equity, which he will put towards his buy-to-let property portfolio. He hopes this will bring his maximum budget to around £750,000.

Share this post


Link to post
Share on other sites

Not exactly no money donw - extracted 300k from a place bought in 2010.

Bought for 30k, hoping to sell for 600k.

He's a postman. Just in case you did not pick that up.

Share this post


Link to post
Share on other sites

They live in Hackney in a property worth around £600,000 that Michael bought in 2010 for £320,000. However, they are about to downsize. In doing so, Michael will release £400,000 equity...

Really? They need to snag a much greater fool.

Share this post


Link to post
Share on other sites

He earns 40K a year.

Has a 320k mortgage for a house he bought in 2010.

WTF.

Parental guarantee:

The most pressing issue for Michael is the repayment of his residential mortgage in 2016 guaranteed by his father. His current income of £40,000 is verging on insufficient to remortgage his property, as the maximum multiple is five times your income for mortgages, and he requires £210,000.

Share this post


Link to post
Share on other sites

Not exactly no money donw - extracted 300k from a place bought in 2010.

Bought for 30k, hoping to sell for 600k.

He's a postman. Just in case you did not pick that up.

ah, of course, he is a postman.

silly me.

Share this post


Link to post
Share on other sites

Money only exists due to people's confidence in it. People spend so much time talking about it that I have no fear that it will continue to exist for a long time to come in some form or another. If you want more money just live nearer a central bank. Even if you shine the shoes of the central bankers you will be wealthier than applying a trade in the middle of no where. That is, if wealth is equal to more money as opposed to the creation of a system that generates useful production.

Share this post


Link to post
Share on other sites

Articles like this being published mean the top has been and gone. And how the hell does he have a 320k mortgage?

I give it 6 months before this whole thing goes belly up.

It's sad people can't invest in something other than property. This country will have a shortage of essential services at this rate with people sitting at home doing BTL.

Share this post


Link to post
Share on other sites

Articles like this being published mean the top has been and gone. And how the hell does he have a 320k mortgage?

I give it 6 months before this whole thing goes belly up.

It's sad people can't invest in something other than property. This country will have a shortage of essential services at this rate with people sitting at home doing BTL.

I think it's 6 months since it went belly up...it wont become public knowledge till after the election.

Share this post


Link to post
Share on other sites

Articles like this being published mean the top has been and gone. And how the hell does he have a 320k mortgage?

I give it 6 months before this whole thing goes belly up.

It's sad people can't invest in something other than property. This country will have a shortage of essential services at this rate with people sitting at home doing BTL.

he doesnt,

in selling the £600K house, he expects to raise 400K in equity. That implies a 200K mortgage. guaranteed by Mr Postman senior till 2016.

somehow, this results in him being able to buy a BTL empire worth £750K

Whichever way the equity slices, he wants another £150K in loans, and he needs a place to live.

Edited by Bloo Loo

Share this post


Link to post
Share on other sites

he doesnt,

in selling the £600K house, he expects to raise 400K in equity. That implies a 200K mortgage. guaranteed by Mr Postman senior till 2016.

somehow, this results in him being able to buy a BTL empire worth £750K

Whichever way the equity slices, he wants another £150K in loans, and he needs a place to live.

I stand corrected.

Share this post


Link to post
Share on other sites

I stand corrected.

I dont think any of the figures actually add up.

Fees, commissions, moving and redecorations seem irrelevant to the headlines, but if you are buying an "Empire", then thats going to be quite a large upfront cost.

Share this post


Link to post
Share on other sites

If a deal is too good to be true...it probably is.

£40K a year postman buying £750K's worth of houses.

This baby is going down.

I have to wonder, why very low skilled workers like postmen are getting paid £40k !!!!!

Share this post


Link to post
Share on other sites

If a deal is too good to be true...it probably is.

£40K a year postman buying £750K's worth of houses.

This baby is going down.

I have to wonder, why very low skilled workers like postmen are getting paid £40k !!!!!

I did it as a student. 30k odd wasn't impossible 15 - 20 years ago, providing you picked up various roles. There was a driving premium, night work had a premium along with Sundays/bank holidays. Back then, there was lots of overtime to pick up as well. There was the postman higher grade which gave you an enhanced base pay as well.

Share this post


Link to post
Share on other sites

I did it as a student. 30k odd wasn't impossible 15 - 20 years ago, providing you picked up various roles. There was a driving premium, night work had a premium along with Sundays/bank holidays. Back then, there was lots of overtime to pick up as well. There was the postman higher grade which gave you an enhanced base pay as well.

Im sure it is possible. I'm just pondering the luancy of this country with several million people unemployed and on benefits, can't get a job with the royal mail and split the work load. £20k each, one less unemployed person, one less person dependent on me. I know they will only then be able to afford a £350K property portfolio, but maybe that's sufficient.

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

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   209 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.