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Why Are They Financially Secure And Do Not Have To Work?


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Sorry ABB but it's even better than Celebrity Big Bro!!!!!!

There is nothing wrong with laughter.

It makes the world go around.

And why the hell are you still awake ?????? ;)

I'm an undercover tax inspector - we work funny hours

ABB

Edited by AgeingBabyBoomer
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I'm all above board and thats the fantastic thing.

A couple of packets of wrigleys that may have snuck through but karma is way more important that cash.

As me old mom said, pay wat you owe and sleep good at night. Followed it to the letter ever since.

Of course you are, sleep well. It's 2:40 AM now

ABB

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I know lots of property owners that that bought during the 60's, 70' and 80's and the thing I just cannot fathom is why they are all:

1) Not having to work

2) Free to do as they please

3) Financially secure

4) Really close to their family - in fact they spend all of their time with either family or friends

5) Wealthy

6) Good at golf

Any help appreciated :)

I had to read this twice to believe my eyes. These landlords fall into a fairly rare category of folk who from an early age act consciously to increase their future wealth even if this means lack of "fun" like cars and booze and nightclubbing in the early years. By the time everybody else is scraping along to pay the mortgage, keep up payments on the car, stay ahead of credit card debt run up to gratify their brats, these people are starting to pull ahead on earnings from their business ventures.

Although our society is one of indentured servitude within a fabulated world of consumer distractions, this is a matter of choice rather than state dictat. You get the society you deserve. These landlords that so baffle you are merely enjoying the fruits of having avoided the pitfalls of salaried indebted servitude. I must confess I fell into the trap lock stock and barrel when I was young and have only made serious efforts to build up capital in the last few years. I probably would not have to work for a salary at all today had I made wiser decisions as a youngster. But so it goes. This society does not encourage responsible financial behaviour, the VIs have too much to gain by keeping the population in debt and diverted by consumerism and sex. Mrs Thatcher was quite conscious in encouraging the car + mortgage culture as a means to achieving workforce discipline. She succeeded, but the long term cost has been a society that no longer understands why it can't pay its way in the world for much longer.

I hope this goes some way to answering your question.

BTW, TTRTR, I recall you once said that in the early 1990s you were renting in some poxy little flat and dissatisfied with your lot. If you don't mind my asking, roughly how much capital did you start out with in your intitial purchases. I know I am prying, but I'd be interested in how other folk got started, and in what phase of the property cycle.

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Durk - ????????? - I'm as lost as you?

TEIN - who is claiming to be an investment expert? I'll leave that to everyone else on here :lol::lol::lol: Yeah, I know loads of 90's landlords that have been through the courts. NOT. Awoooooogha - is that a term for property profit? If not, sorry but I cant answer that one.

Sarahbell - classic case of HPC assuummptionnnnnn :lol:. Of course all landlords are the same. Just as all tenants are dope smoking, red stripe swilling s**t arsed losers. :ph34r:

Fred ded right - time to get a life? ? So bitter you'd make a lemon smile.

Converted lurk - Golfs great. Sorry if you wear generic slacks, not farahs and feel excluded. :unsure:

Mat munro - you could do worse. Why dont you post 9 - 5? Working???? :rolleyes:

Now

the end is nigh.......

Your folks seem similar to mine. Bought in 1964 for £4600 now worth £325,000. But to rent it out for £1000 per month would be financial madness.

Much better to live there rent and worry free while living off your other investments safe in the knowledge that even if there is a 30% drop in prices, you can hand the batton on to you kids to the tune of £227,000.

Andno. No troll. Just pointing out that the world is not as black as you guys think. You question and I'll respond.

Remember that song by Yazz?

"The only way is up, baby, for yoouuu nd meeee yeahhhhhh"

Focus on crap, you'll get crap..................................

You seem to be a great advocate of BTL even to the point where you think you can give TTRTR advice so im wondering how many BTL's do you have in your portfolio, or are you lookingafterthekids while your spouse is working his/her 9-5 so that you can lookafterthekids and post on here?

Not meant as antagoistic, im curious is all.

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awooga.

estate agent, deffo. probably a junior one at that, look at all the moronic smilies etc.. The boss said 'go drum up some business on that poxy websiote that is singlehandedly destroying the uk economy'. So he did.

'my great gran bought in 1856 for 8 shilling and now its worth a million. The german bomb in ww2 didnt even do much damage' blah blah blah'

>yawn<

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These landlords that so baffle you are merely enjoying the fruits of having avoided the pitfalls of salaried indebted servitude.

More to the point, they're enjoying the fruits of borrowing money and then stuffing the lenders with high inflation. It's easy to get rich if you can borrow a thousand pounds to buy a house and four decades later it's 'worth' three hundred thousand... but hardly a productive contribution to society.

I have no problem with people who make money building houses that people want to buy, or those who buy houses to make money renting them to those who don't want to be tied down. Those people are doing productive work that helps the economy as a whole.

But those who borrow to buy and then sit in the place hoping that inflation will stuff the people they borrowed from are just parasites. The odd thing is that governments whine that 'unearnt income' from dividends and the like should be taxed hard, yet the single greatest source of unearnt income in the country is not taxed at all.

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Guest Fiddlesticks

My parents bought their 4 bedroom house for £8k in 1970 - if they rented it out today they would get £1200 a month for it - does that make them investment gurus or just people who wanted a nice house to bring up a family in.

The "investment gurus" bought more than one.

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I know lots of property owners that that bought during the 60's, 70' and 80's and the thing I just cannot fathom is why they are all:

1) Not having to work

2) Free to do as they please

3) Financially secure

4) Really close to their family - in fact they spend all of their time with either family or friends

5) Wealthy

6) Good at golf

Any help appreciated :)

You're just trying to rub our noses in it! Just give it a while and we'll see who's laughing!

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29929BlackTuesday

I am not rubbing anyones nose in anything.

I am merely pointing out that there are a lot of peope that have made a lot of money from property through differing market conditions and there is a very good chance that they will continue to do so.

let's see

you start by creating a post about cream rising to the top and then further down the thread identify yourself as part of the cream

you tell people to buy more properties even at the top of a boom when property is grossly over-priced - even TTRTR who can be pretty objectionable at times tries to buy properties 20% below average asking price - you seem to suggest 'just buy'

do you have any qualifications other than you bought at a time when you would have been lucky to borrow 2.5 times your average salary?

with any asset you have a chance of making money if you buy and sell at the right time - now isn't - so, you don't seem to have provided anything other than letting us know that you are cream - thanks

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People who leveraged themselves heavily to buy internet stocks could have said the same thing in 1999. In the cold light of history, they now look foolish (excepting those that sold at the top).

I am in the same situation as you latk, child and (not) work wise. There may indeed be bargains out there in the property market, but at the moment there are far easier, more lucrative and less risky ways of making money.

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TEIN,

The cream referred to ar people that bought property long ago and held while everyone else told them they were foolish.

I would dearly love to be 'cream'. I am a mere mortal when compared to other investors. I may have a measily couple of properties but what I also have is a belief that there will always be the right deal regardless of conditions.

You still should buy if the deal is good. We may be at the top of the market in some areas but as I keep trying to point out, there will always be a profit to be made somewhere. In retrospect rather than saying buy more BTL, I should have said buy more properties to sell on at a profit.

How do you class qualifications?

You say that as with any asset you have a chance of making money if you buy and sell at the right time - now isn't - what the right time to buy, to buy to sell on, to buy to let, to buy to develop, to buy to split, to buy to hold short term, to buy to hold medium term, to buy to hold long term or to buy to flip at a profit? You mention that TTRTR buys at 20% below true value. If he or anyone else sells on into what is still a fairly ok market in most areas are you telling me he doesnt turn a profit?

What I want to try to provide is a balanced argument regarding property.

Again, I wish I was cream :rolleyes:

Gone west,

The thing with old school property investors is that althogh they leveraged themselves in times of old, now they are debt free and income rich.

With regards to bargains and profits, there is no doubt that there are better bargains and profits out there, it's just a matter of what you are comfortable with.

As I have said befor. Take ANY market and look at the down cycle or even the bottom. Did all transactions cease or were ther still people dealing and making a profit?

The problem as I can see it is the UK economy and social structure as a whole. Tough times ahead and it will be fun whatever market you are in.

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Bubb as usual a valid response.

But what about the majority that are not 'active' investors whether in gold, stocks or g*g forbid, property.

As I see it there is lots and lots of money to be made from commodities and \ or stocks and \ or \ property.

You know my views n the big P and you may be right in saying that there are way, way better profits to be made else where but it's all about knowledge.

The gold investors that you talk about made money from the out of favour gold market of 2001 onwards just as the property investors made money out of the out of favour property market of 1996 (latest) but instead of selling they held because there was a nicely positive income.

Now if things are going to get as hairy as some on here predict will and investment prove safe whether cash, property, gold etc etc

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Guest Bart of Darkness
The cream referred to ar people that bought property long ago and held while everyone else told them they were foolish.

Shame Property Guru isn't still around to be deservedly "creamed".

Now there was a sad, dysfunctional, sorry excuse for a human being. :lol:

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I know lots of property owners that that bought during the 60's, 70' and 80's and the thing I just cannot fathom is why they are all:

1) Not having to work

2) Free to do as they please

3) Financially secure

4) Really close to their family - in fact they spend all of their time with either family or friends

5) Wealthy

6) Good at golf

Any help appreciated :)

Our landlord bought this house I don't know when. His family lived in it for some time. They bought up.

What you have to keep in mind is that in the 60-80s (at least in the US) You needed AT LEAST 20% down for a rental properity. These are also people who also were looking for long term investments and wanted at least a small positive cash flow from day one. They would, for example, put their 20% down, have a payment of $500 USD a month and rent it out for $600 a month. (and I bet $75 of the $100 profit went to taxes, insurance, repairs etc)

The numbers just don't work today. We pay $1,000 a month for a house that would sell for prolly 350K. Even if you had the 70K to put down, you would still have to pay out $700 a month over what the rent covers, and that assumes no repairs, taxes, insurnace, vacancy etc.

Based on rent the value of this house is closer to $175K.

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