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pipllman

Even Fergus Knows The Truth - It Was All Lucky Timing

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In the commentary on his latest video interview - investor / landlord

"Yes it is right that the Mid 1990s were kind to Judith and myself. Could we replicate it again. Not in the current circumstances.
The Business Enterprise Scheme was a great idea that came along at the wrong time. Then came the Buy to Let Interest Only Mortgage.
The buy to let Interest Free Mortgage is what made me. With 85% LTV mortgages I only had to put in 15%.
I would but a property for £30,000 at auction and it would be valued for mortgage purposes at £45,000. I would then draw £38,000 and have £8,000 for my equity contribution to my next mortgage.
That is 20 years ago. It is not possible to carry on like that in 2015.
I have made my money now I intend to enjoy it!
Fergus Wilson
5th October 2015"

and off plan buying in a rising market

"...Certainly about the year 2000 I had ceased to be aProfessional Landlord[/i] as I had plenty of rent coming in and a minor profit of a pound or so added up in my case.

I would then look at the houses available off plan knowing it would take some time for them to be built. Generally I paid a £250 holding fee. and fixed the price. This is very important in a rapidly increasing market.
By the time the were completed some had increased by 30% in value. That is an immediate profit on paper. It may make you feel good but it does not put any bread and jam on the plate.
Of course when you sell the CGT man rubs his hands and gets 28% for doing nothing. I get 72% for thinking it out. It is a future profit in real terms and an immediate paper profit initially.
In the next year or so the paper profit can be used for the equity of the next house you are buying off plan.
As a Property Investor you are very much into the Buying Off Plan game.
As a Professional Landlord buying off plan simply did not come into it. As a Property Investor it did.
If you are an intending entrant to "Property Investment" then I suggest you at least look at purchasing off plan...."

even though it couldn't be done in the same way today, all is rosy for the incumbent property investor, prices are on the up

"The market place prevails!

All the time there is a shortage of houses the price goes up as does the rent. It is a simple case of supply and demand.

The supply of houses will not be satisfied for 30 years at present rates of 100,000 per year. If output is increased to 200,000 per annum then it will take 15 years to deliver the shortfall of 3million houses.

There is no magic wand! Some unfortunate people have to go without!

Fergus Wilson
6th October, 2015"

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Still has not spelled out where his actual net gain is appearing from, not that he has to of course. But considering he is on the record as saying that low rates saved him I think it is clear he has very little net worth when borrowings are repaid and taxman satisfied.

He is spelling out that he MEWed paper off-plan gains into further purchases, and maybe he was smart enough to leave the oldest purchases alone from MEW, but I very much doubt it.

Where are the millions? Is the UK taxpayer funding his lifestyle via forebearance and partial ownership of the mortgage debts?

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Of course when you sell the CGT man rubs his hands and gets 28% for doing nothing. I get 72% for thinking it out.

It's mind boggling the way these LLs can moan about the tax man getting 28% for "doing nothing" whilst they fully deserve their share for being such geniuses (cognitive dissonance at its best).

No mention of the fact that the full 100% of this increase is actually paid for by the poor saps in the next generation, out of fully taxed income.

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Still has not spelled out where his actual net gain is appearing from, not that he has to of course. But considering he is on the record as saying that low rates saved him I think it is clear he has very little net worth when borrowings are repaid and taxman satisfied.

He is spelling out that he MEWed paper off-plan gains into further purchases, and maybe he was smart enough to leave the oldest purchases alone from MEW, but I very much doubt it.

Where are the millions? Is the UK taxpayer funding his lifestyle via forebearance and partial ownership of the mortgage debts?

Yes

But it seems he sees a glimmer of light at the end of his tunnel - because of the shortage of houses, the price is going to go up

And he will be able to sell at vast profits

Eventually

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I am minded of a slogan from one of those 'get rich from property' schemes from back in the day

Don't wait to buy property. Buy property and wait for it to make you rich

Something along those lines

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"I have made my money now I intend to enjoy it.."

I just hope Fergus doesn't indulge his racehorse-owning impulses again...

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I can't help wondering if the racehorse thing is some kind of dodgy tax avoidance scheme. You buy a cheap old nag and then claim to have 'invested heavily in it' while in reality are stuffing £20 notes inside the sofa.

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