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TJHooker

Private equity firms gets UK taxpayer funded property

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Free money for US private equity firms.

https://www.ft.com/content/6a68b7c8-4ec9-11e8-9471-a083af05aea7

Go to incognito in chrome and paste "Blackstone under fire over push into UK social housing"

Basically they're outbidding not for profit housing associations, to get "affordable houses" on the cheap to then flog them off in 5 years to the private sector.

Levels of crony capitalism is this country enter new depths!

Edited by TJHooker

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6 hours ago, TJHooker said:

Free money for US private equity firms.

https://www.ft.com/content/6a68b7c8-4ec9-11e8-9471-a083af05aea7

Go to incognito in chrome and paste "Blackstone under fire over push into UK social housing"

Basically they're outbidding not for profit housing associations, to get "affordable houses" on the cheap to then flog them off in 5 years to the private sector.

Levels of crony capitalism is this country enter new depths!

Horrendous but not unexpected

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On 12/05/2018 at 17:51, TJHooker said:

Free money for US private equity firms.

https://www.ft.com/content/6a68b7c8-4ec9-11e8-9471-a083af05aea7

Go to incognito in chrome and paste "Blackstone under fire over push into UK social housing"

Basically they're outbidding not for profit housing associations, to get "affordable houses" on the cheap to then flog them off in 5 years to the private sector.

Levels of crony capitalism is this country enter new depths!

Let me guess.... this relates to abuse of the intended spirit of section 106.

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Private equity will buy up as much possible, then undercut the rent of the leveraged BTL borrowers. Renters will then switch to the cheaper rentals, this will bankrupt the borrow to let amateurs.  PE then pick up the reduced price property's at auction or direct from the lenders. Drive all the over leveraged into bankruptcy, then raise rents again when they control most of the rentals.:ph34r:

Cash rich counties such as P.R.C and the K.S.A take over. Debtors fail big time. 

Edited by Lord D'arcy Pew
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This is the problem with "affordable housing" or any other means of trying to make housing cheaper in a target way, you end up creating an arbitrage opportunity. The only solution is to bring down prices overall.

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On 12/05/2018 at 17:51, TJHooker said:

Free money for US private equity firms.

https://www.ft.com/content/6a68b7c8-4ec9-11e8-9471-a083af05aea7

Go to incognito in chrome and paste "Blackstone under fire over push into UK social housing"

Basically they're outbidding not for profit housing associations, to get "affordable houses" on the cheap to then flog them off in 5 years to the private sector.

Levels of crony capitalism is this country enter new depths!

Err LHA are not some nice not for profit. They are money sinks.

They just p1ss the money away on their staff rather than the buildings/tenants.

Id prefer o take my chance with PE rather than about 10 layers of ex social workers playing at being a LL.

 

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Top rated comment:

 

'Surely this is a great thing. Foreign capital investing in the UK. Replacing high cost, inefficient and bureaucratic housing associations?

From my direct experience of housing associations, it is a complacent over managed, sub scale sector. CEOs paying themselves £200k for managing 25k properties.'

 

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'Yes , I worked 5 years for the biggest. CEO paid himseld nearer 400k. Packed with low grade middle management, fawning politicisation, racked with inefficiencies. The HAs will be quaking in their boots and corectly so, after holding thwir hands out for 30k subsidies to build every crappy unit.'

 

 

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10 minutes ago, goldbug9999 said:

This is the problem with "affordable housing" or any other means of trying to make housing cheaper in a target way, you end up creating an arbitrage opportunity. The only solution is to bring down prices overall.

Yep

Affordable housing is a misnomer, all housing should be affordable against your circumstances.

Boomers will point out there’s plenty of ‘cheap’ £80k flats/houses down stab street in Rapesville (which was £20k 15 years ago). You just need to lower your expectations, as they did buying houses with outdoor privies and 100 miles from work..

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5 minutes ago, spyguy said:

Top rated comment:

 

'Surely this is a great thing. Foreign capital investing in the UK. Replacing high cost, inefficient and bureaucratic housing associations?

From my direct experience of housing associations, it is a complacent over managed, sub scale sector. CEOs paying themselves £200k for managing 25k properties.'

 

I'd say you wrote it, but it's readable...

#bantz

Edited by PopGun

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10 hours ago, spyguy said:

Err LHA are not some nice not for profit. They are money sinks.

They just p1ss the money away on their staff rather than the buildings/tenants.

Id prefer o take my chance with PE rather than about 10 layers of ex social workers playing at being a LL.

 

Yes i agree Housing Associations are a nice earner for the jobs for the boys brigade.

But 2 wrongs dont make a right.

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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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