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CrashConnoisseur

Askaboutmoney: Irish Investors In U K " Seriously Up Against It".

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'Re: Anyone else caught with apartment in Carrick-on-Shannon ?':

http://www.askaboutmoney.com/showthread.php?t=31052

Friends of ours jumped on the 'apparent' boom in the UK apartment market last year -- think they bought in Manchester (not 100% sure) but they are all seriously up against it now -- can't sell, rent doesn't cover mortgages and have had to use any equity in their own homes to finance -- one guy is being hit with an additional 800 stg a month trying to cover. It's starting to affect his own business..........serious stuff.
Edited by Jeff Ross

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And these fools have managed to do this when interest rates are still historically very low.

What happens when they rise, as they are sure to do in the next couple of months?

Many people are going to learn the hard way that positive cash flow really does matter.

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This bit from post #22:

Bubbles can take down anyone who's willing.

Sir Isaac Newton got dragged into the South Seas bubble right towards the end, after he shunned it initially. He lost a fortune.

And George Soros jumped into the dot-com bubble towards it's end.

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From Post #10

Get the tenant on a 12 month lease.......take the loss but treat them well and hope you can get them to renew at a bumped up rent or hope market strengthens.

The thing that leaps out is the use of the word 'hope' twice in the same sentence. Only an inexperienced amateur would offer advice like that.

As the market begins to turn, the amateurs will just hang on 'hoping' that the things will improve, whereas the professionals understand when to cut and run.

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"If I was in rabbit's position (and I have!) I would avoid selling at all costs.

Instead I would go for a lowball rent and maybe throw in broadband in the ad for example. Get the tenant on a 12 month lease.......take the loss but treat them well and hope you can get them to renew at a bumped up rent or hope market strengthens.

As capital cost is low rabbit should be able to shoulder loss for a few years and get self financing soon. In the interim capital appreciation will cover shortfall even if only a % or two."

Sound advice there then. :lol::lol:

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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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