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What Is The World Coming To ?

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To be frank, negotiating a 10% discount in a declining market, IMPO, is not that brilliant. In the typical non-bubble market is not about 90% of asking price considered common?

I would have thought that the builder is the one walking away from that deal with the bigger smile but then I am not an entrepeneur!

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"These articles regarding the entrepreneur who buys a 700K house with a self cert having negotiated a 70K discount are worth archiving to re-visit once major house price falls become common place. 10% is the bare minimum any developer would discount by, they saw this chump coming as did the mortgage broker whose fee in the region of 3.5K will be most welcome. Less than a decade ago this proposition would have been ridiculed, a mortgage to support the purchase of a 700K house for a director of a nearly new business..are you having me on? "

http://firstrung.co.uk/articles.asp?pageid=NEWS&cat=49

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"These articles regarding the entrepreneur who buys a 700K house with a self cert having negotiated a 70K discount are worth archiving to re-visit once major house price falls become common place. 10% is the bare minimum any developer would discount by, they saw this chump coming as did the mortgage broker whose fee in the region of 3.5K will be most welcome. Less than a decade ago this proposition would have been ridiculed, a mortgage to support the purchase of a 700K house for a director of a nearly new business..are you having me on? "

http://firstrung.co.uk/articles.asp?pageid=NEWS&cat=49

Director of a new business,700k new build----could this be a self cert mortgage I wonder?

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Guest horace

Don`t forget that when our intrepid purchaser experiences financial difficulties he can always send his Mrs out to work.

horace

Edited by horace

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fred was wondering exactly the same thing.

i dont know anyone with 30 month old buisnesses that can just go out and buy a 770k house, for one thing taking that much money outta a new venture every month will suck it dry.What this smells of to me is this guy came into some money somewhere, he used this money to open a buisness that probably aint even making a profit yet, and the rest put down as a large deposit on a house.

there is more to this than is being said ie how much he had to begin with

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And he's got it on a variable rate mortgage. Please oh God of the interest rates bring forth a hike or two to wipe these muppets out...700k for a 5 bed house - unbelievable.

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Extracted from Onlypedia.

Householder, n, Someone who owns their own house.

Bagholder, n, Someone who owns a sh*t load of debt in a goosed market.

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who are these people?

Wow, this guys got it all, the job, the 2.5 year old company, the wife, the looks, the kid, and now the £770,000 property.

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And just look at what you can get for £700k in Reigate in Surrey (prime expensive London commuter country):

http://www.rightmove.co.uk/viewdetails-111...pa_n=1&tr_t=buy

This is similar to the analysis I did a week or so ago about comparing average terrace house prices in Bearwood (ordinary part of Birmingham) with average terrace house prices in Reigate in Surrey for the years 2000 and 2005. I found that in 2000 an average terrace house price in Bearwood was = to 42% of the average price of a terrace house in Reigate. In 2005 an average terrace house in Bearwood was = to 72% of an average terrace house in Reigate. This to me indicates that Bearwood, Wolverhampton and the rest of Birmingham are due to have catastrophic house price falls to return to the long term trend relationship between Birmingham and Reigate/Surrey house prices.

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The article says;

"he asked for a 10 per cent discount. “If you want a bargain, then it is always worth asking the question,” he says. The developer agreed, but with one condition: the purchase had to be completed within a week."

Translated to me this means; of course the developer agreed, he wanted to quickly lock this sucker in before he had time to realise his mistake and change his mind. This 'entrepreneur', being a hard-nosed experienced businessman acted quickly since he was already imagining how smug he'd feel with the keys to his new millstone, and how jealous others would be of him.

The article then goes on to say;

".....all of the lenders initially approached turned him down because they thought that his business, which is only 2½ years old, was too risky."

But then his reliable Financial Advisor (being the charity that they) worked day and night until they found him a loan (at any cost).......

"Barratt says that, without the fast turnaround on their loan, he, his wife Jillian, and their son Connor, two next month, would not have ended up in their new home."

And we wouldn't want you to miss out here now would we ?? Everyone one knows that all small families need a large 5 bedroomed mansion....

I mean, we're talking Wolverhampton here........

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Wouldnt be surprised if hes on Friends Reunited boasting. Would be interesting to know what the business is too, not that I am endorsing people go away snooping. :ph34r:

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Guest horace

Fellow posters, I feel we are being a little harsh on Mr Barratt.

Having re-read the newspaper article...

Quote

` So when Terry Barratt, 35, managed to knock £70,000 off the asking price of a £700,000 five-bed detached Georgian-style house in Wolverhampton, he was more than a little chuffed`

Unquote.

This means he paid only £630,000.

Well thats alright. This lad is odds on to become a multi millionaire. You mark my words.

horace ;)

Edited by horace

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This does smell a bit like Joan Collins' knickers. :lol: If the entrepreneur didn't think he qualified for a mortgage why did he think it a good idea to accept it? By definition an entrepreneur is a risk taker but we need to establish how much debt this guy took on. We are, IMO, looking at a recession in this country so probably not the best time to be investing in big houses. It's only been delayed by a public spending bonanza.

I would prefer to buy something in a more desirable part of the country with my 700 grand. Better still I would save myself the insane 4% stamp duty and buy below the higher stamp duty threshold of 500 grand. Using my entrepreneurial brain I would invest more in business venture, using a limited company to offset liability damage to my loved-ones.

This has to be a publicity stunt for the property developer. Now let me think; why wouldn't an ENTREPRENEUR capitilise on the free publicity too??????? Um? Easy come, EASY GO.

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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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