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Loving The Crash

Taxpayer Gainz

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Forget Icelandic Banks - my local council has a much better idea:

"The council has been snapping up local landmarks in recent months to boost its portfolio of properties. Council leader David Tutt said low interest rates on borrowing meant the council could invest taxpayers’ money by buying up assets and get major returns."

Read more at: Link

:blink:

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“We are spending money on assets which go up in value and also pay a dividend,” said Mr Tutt.

“It makes good business sense."

Genius, such flawless analysis!  Dimwits like me might have wasted the money building houses or something.

 

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Yep. Theres quite a few investing un commercial property.

Insane as they ought to know how bad commercial property is performing.

The people signing off this need surcharging.

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18mln is chicken feed, i see your £18mln and raise it to £125mln that Bournemouth council have somehow managed to get a hold of.

http://www.bournemouthecho.co.uk/news/15428327.Council_plans_to_invest___125m_in_commercial_property__but_can___t_say_yet_what_it_will_be_/

I like this quote the best "Bournemouth says a £100m investment in commercial property will typically yield £1.5m of income a year"

A 1.5% yield!

This is the council who tried to become a bank offering mortgages the other year and lost a fortune.

 

 

Edited by Habitationi Bulla

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This trend is worrying because councils in the main deal with planning applications and zoning. If they are also players in the real estate market, they can make decisions which protect or increase their returns, to every one else's detriment. They can buy offices, and turn them into flats (giving themselves permission), or they can prevent a new retail park opening nearby which might compete with their own.

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52 minutes ago, onlooker said:

This trend is worrying because councils in the main deal with planning applications and zoning. If they are also players in the real estate market, they can make decisions which protect or increase their returns, to every one else's detriment. They can buy offices, and turn them into flats (giving themselves permission), or they can prevent a new retail park opening nearby which might compete with their own.

Or they can get so much cheap money they  over pay thus creating a bubble in their area and price out viable companies who will now have to pay higher mortgage/rent.

Edited by Habitationi Bulla

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