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hurlerontheditch

Councils getting into BTL

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In the financial year 2017-18 councils in England and Wales invested about £4bn in property and land - up 43% on the previous year. 

Spelthorne Borough Council has pioneered the use of cheap government-backed loans to amass a property portfolio worth £1bn which it expects to generation millions in rental income over the next year. grants is one that has been investing in this way. 

Leader Councillor Ian Harvey told Wake up to Money why.

"Very simply we've been facing very significant cuts to our central government grants and and indeed grants from... Surrey Council Council."

He reckoned over the last 4-5 years that amounts to a cut of about £5m or about 20% of the council's total budget.

"Had we not looked to do something else we would have been facing very, very severe cuts to our services and we believe our residents want and deserve the services that we currently supply."

 

 

Using government loans to buy houses and rent them out , to subsidise their income 

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9 minutes ago, hurlerontheditch said:

pioneered

Such innovation, these entrepreneurs have really built up an anti-fragile investment portfolio.

Before they do any more harm, can't we just drop the act and admit they're bankrupt?

 

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Council investing in BTL... wouldnt that be council housing?🤔

Seriously though - in  the example given its all commercial property portfolios. IIRC the largest council in the example have bought a large office campus from BP. Stroke of genius from BP getting a large slot of land and buildings off the balance sheet near the peak of the market, now maintained by a reliable landlord (the council) and, presumably subject to some terms, they can walk away from the building whenever they want leaving the council with a large office complex i doubt they could sell or use without a significant amount of work. A Blue chip tenant is only a positive as long as they remain your tenant.

Ive bought (as an employed accountant, not personally) and worked in a few 'modern' commercial warehousing units and i wouldn't buy those to hold for any length of time. they seem to be built to a useful life of around 15 years. particularly as the rules on cladding keep changing.

I saw one councillor describe their £Bns property portfolio as guaranteeing the future of their next generation, i can see that generation being stuck with empty commercial units, brownfield sites no one want to live on if they were redeveloped, and a load of rickety warehousing units that need replaced at a significant cost.

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3 hours ago, hurlerontheditch said:

Leader Councillor Ian Harvey told Wake up to Money why.

 

https://mycouncil.surreycc.gov.uk/mgDeclarationSubmissionPrintView.aspx?nobdr=1&UID=1220&HID=994&FID=0&HPID=0

Property letting and management (including of my own and other’s properties), property maintenance. Investment mortgage broker (not currently active).

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22 minutes ago, Si1 said:

https://mycouncil.surreycc.gov.uk/mgDeclarationSubmissionPrintView.aspx?nobdr=1&UID=1220&HID=994&FID=0&HPID=0

Property letting and management (including of my own and other’s properties), property maintenance. Investment mortgage broker (not currently active).

Shocked.

So have all councils appointed hog-in-trough BTL investors to manage their entire portfolio, or is it just the 100% of those we've looked at so far?

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2 minutes ago, darkmarket said:

Shocked.

So have all councils appointed hog-in-trough BTL investors to manage their entire portfolio, or is it just the 100% of those we've looked at so far?

Wouldn't surprise me. Bubbles work at govt as well as market level. That's also why they overcorrect.

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1 minute ago, Si1 said:

Wouldn't surprise me. Bubbles work at govt as well as market level. That's also why they overcorrect.

If I felt my gambling habit was clouding my professional judgement when I was managing public funds, I like to think I'd have the decency to quit and find another job.

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Just now, darkmarket said:

If I felt my gambling habit was clouding my professional judgement when I was managing public funds, I like to think I'd have the decency to quit and find another job.

I do wonder if that council has a chief financial officer, and if they have an opinion on this? 🤐

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1 minute ago, Si1 said:

I do wonder if that council has a chief financial officer, and if they have an opinion on this? 🤐

No doubt they have an expert opinion and it's just that they haven't been invited to share it. Not like they were doing anything risky after all.

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Just now, darkmarket said:

No doubt they have an expert opinion and it's just that they haven't been invited to share it. Not like they were doing anything risky after all.

It strangely reminds me of Toyah Wilcox going balls deep in commercial property in the late 2000s and mouthing off about it like it's the most logical thing. This though seems worse.

https://www.telegraph.co.uk/finance/personalfinance/fameandfortune/2787100/Fame-and-Fortune-Toyah-Willcox.html

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6 minutes ago, Si1 said:

Remarkable. A balanced psyche at work there.

Quote

Are you cautious with money or liberal with it?

I'm incredibly cautious because I've seen how easily you can lose it. I don't know who gave my father his advice, but they should be shot.

Are pensions a good idea?

Yes, I used to have 20, but I amalgamated them recently and put most of them into a SIPP. I was hoping I would be able to invest the whole lot in residential property, but I can still do commercial property.

 

Edited by darkmarket

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4 hours ago, hurlerontheditch said:

In the financial year 2017-18 councils in England and Wales invested gambled about £4bn of future taxes in property and land - up 43% on the previous year. 

Spelthorne Borough Council has pioneered the use of cheap government taxpayer-backed loans to amass squander on a property portfolio worth costing £1bn which it expects hopes to generate millions in rental income over the next year. grants is one that has been investing speculating with taxpayers' money in this way.

Fixed it.

It's just a totally fvcked up way of taxing people to pay for services.

Edited by Captain Kirk

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13 minutes ago, Captain Kirk said:

Fixed it.

It's just a totally fvcked up way of taxing people to pay for services.

Who'd have thunk that Gammons, being in possession of intergenerational wealth, would risk it on vanity investments?

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25 minutes ago, Si1 said:

Who'd have thunk that Gammons, being in possession of intergenerational wealth, would risk it on vanity investments?

If it wasn't obvious, half the country is infected with this disease and it touches all political parties.

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2 minutes ago, darkmarket said:

If it wasn't obvious, half the country is infected with this disease and it touches all political parties.

The only people this should surprise is those who are propagandised enough to think the government is there to help them.

The sole purpose of Government is to maximally extract resources from the populace for the benefit of the politically well-connected, while minimising the chance that the populace will meaningfully resist.

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6 hours ago, Locke said:

The only people this should surprise is those who are propagandised enough to think the government is there to help them.

The sole purpose of Government is to maximally extract resources from the populace for the benefit of the politically well-connected, while minimising the chance that the populace will meaningfully resist.

This is anarchist clap trap.

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7 hours ago, Si1 said:

Who'd have thunk that Gammons, being in possession of intergenerational wealth, would risk it on vanity investments?

I haven't figured out if gammon is principally racist, sexist or ageist, or equally all three. It's a moronicly prejudiced term to use. 

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8 minutes ago, bushblairandbrown said:

I haven't figured out if gammon is principally racist, sexist or ageist, or equally all three. It's a moronicly prejudiced term to use. 

I thought it was preferable to boomers tbh as it's a catch all for people with a common attitude and po faced grimace, and isn't tied to a generational definition.

Edited by Si1

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On ‎21‎/‎02‎/‎2019 at 06:36, hurlerontheditch said:

 

 

 

Using government loans to buy houses and rent them out , to subsidise their income 

I don't think so..?  This cheap money is used to buy commercial property not housing?  There is another thread on this subject.

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