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Omg..rosie Is Ramping Btl For Children Now

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Tales of a landlady

First policemen - now landlords are getting younger, too, finds an awed Rosie Millard

I know buy-to-let encourages a herd mentality, but could this be madness? For Luke Clarke, a tender youth of 17, has been bitten by the buy-to-let mania. Indeed, he is possibly the youngest investment landlord in the land.

Before long, he had saved up enough (£10,000) to slap down a deposit on his first place. “I’m buying a one-bed apartment in Eastfield, Peterborough, for £92,000. Actually, Terry has already bought it and I’m buying it from him the day after my 18th birthday, which is on August 20. It already has a tenant in it, who is paying £475 a month.”

Wasn’t there a problem applying for, effectively, an 80% loan-to-value mortgage at the age of 17? “No. It was a standard application and it should go through the day after my birthday.”

At which point, Clarke, who earns about £10,000 a year, topped up by another £3,000 in bonuses if he’s lucky, has everything carefully planned. “I want to make one, then two, then four, then eight purchases. I’ll remortgage and buy more ex-council properties, like this one.”

But what about when things get a bit rocky? What about interest rate rises? “Er, I’m not too sure about that.”

:rolleyes:

http://www.timesonline.co.uk/article/0,,20...96490_2,00.html

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What's more concerning is that basically that kid isn't really doing it for his pension, he's doing it as a career and there are so many factors he seems to be missing out of the equation, like repair bills, redecoration, replacing appliances (if he's letting to DHSS) they have very strict rules about the standard of accomodation. Interest rates are the least of his wories if he's only making £100 a month profit but then I suppose it's better than a negative return.

It bewilders me though why they think it's such easy money, even TTRTR if you catch him on a good day will admit his tennants can be a PITA and at least gold doesn't call you up at 4am to tell you the boilers blown up.

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“In Peterborough I would avoid new-builds, as there is an oversupply. You can get ex-council properties very cheaply and that means you can get a good rental return. You also have to know who your tenants will be. For example, if you are likely to get tenants on benefits, prepare yourself for that.”

If these are his words he doesn't sound too naive.

Besides he's got practically nothing to lose, and if he goes bankrupt he can start again while he's still young.

Pity he's following the herd, but either way he's going to learn some very useful business lessons very early in his career.

Edited by BandWagon

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Guest Alright Jack

If these are his words he doesn't sound too naive.

Besides he's got practically nothing to lose, and if he goes bankrupt he can start again while he's still young.

Pity he's following the herd, but either way he's going to learn some very useful business lessons very early in his career.

So, I can see the headlines of tomorrow,

"BTL is new Lemonade Stand"

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Laugh away. This kid sounds like he knows what he's doing. He's probably visited this site a few times!

This kid could be your landlord one day.

Edited by Immigrant

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This has echoes of the dot.com boom just before it went bust. I remember a story of a kid being able to borrow thousands to buy futures in dot.com shares. Also £475 isn't a very good yield, and it will be even worse when the one bedroom flat is worth £15,000 less, his tenant has gone because he's lost his job and he has voids he has to fund out of his 10k.

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"Lemonade Stands boom as burnt Buy-To-Let investor's leave the market in droves."

Latest reports indicate that the Lemonade Sector is booming as wary investor's move out of the crumbling property market.

Says little Jimmy: "My dads buy-to-let portfolio has gone to ruin. But the price of a good lemonade stand has rocketed."

So are there good profits to be made in this new booming sector?

"No", says little Jimmy, but apparently that's not a problem, as he explains:

"We're in this for the long haul, so profits now don't matter. But in 10 years time, out Lemonade Stand will be worth a fortune."

:rolleyes:

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This has echoes of the dot.com boom just before it went bust. I remember a story of a kid being able to borrow thousands to buy futures in dot.com shares. Also £475 isn't a very good yield, and it will be even worse when the one bedroom flat is worth £15,000 less, his tenant has gone because he's lost his job and he has voids he has to fund out of his 10k.

Sure this kid is taking a risk - probably a bigger risk than he realises. But no-one ever got rich without a risk (apart from inheritance, divorce settlements etc). He can survive a downturn because his overheads are so low (lives with parents, no kids etc).

Think about his school mates for a minute - many of them are going to go to uni and come out with degrees that give them no guarantee of a job, and huge debts - so who's taking the risk? This lad is probably going to be employing some of his graduate pals in a few years.

I think what really gets people about this story, is not the risk the kid is taking - there is something distasteful about the easy money people can make out of property, and this kid seems to be on that road.

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I think what really gets people about this story, is not the risk the kid is taking - there is something distasteful about the easy money people can make out of property, and this kid seems to be on that road.

That's part of the problem, at the top of a boom most people will think that's it's easy, just at the time it becomes difficult.

At the bottom of a bust the general consensus will be that property is a terrible investment.

Public confidence is a lagging indicator, that hasn't changed.

For years and years going forward property will be a bad investment, but right now you can't tell people that.

Edited by BandWagon

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This lad is probably going to be employing some of his graduate pals in a few years.

The problem with this part of your reply is that it assumes he's successful, which in all probability he won't be.

You yourself admit it's a risk. It's at least as likely that he'll be declared bankrupt and stay at home with Mum for years while his friends leave Peterborough and get half decent jobs elsewhere.

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Hardly surprising. Meedjuh-addicted kids are told they can make an effort-free career out of being and oafish retard (Jade/BB/Yoof TV), getting their boobs out for any number of lad's mags, limply strumming an electric guitar and having a daft haircut (Razorlight/Coldplay/Emo bands), and when they grow up a bit and their boobs sag, the pop career fails, and they can't get into BB, there's umpteen shows to tell them they can BTL.

This boy's just a step ahead of the game.

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Get this guys: in my local rag there was an article about the new village 'beauty queen'. Looked like an Indian babe as it happens. Very cute. Anyway, what was her ambitition (at the tender age of 16)? To be a PROPERTY DEVELOPER! :lol:

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Get this guys: in my local rag there was an article about the new village 'beauty queen'. Looked like an Indian babe as it happens. Very cute. Anyway, what was her ambitition (at the tender age of 16)? To be a PROPERTY DEVELOPER! :lol:

Well that's an improvement on wanting to save the Dolphins\World\Children.

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THIS BTL NOTION is scary and dangerous

Over lunch this week (I paid), she told me she was considering MEW-ing to buy another flat, so she could rent it out and generate some income. When I told her she would be buying at the top, and may soon find herself in negative equity, she looked at me incredulously.

Then she said she woudl only buy if the rental income would cover the debt payments. The possibility of voids and repairs does not even come to her. And, yes, liek many otehrs I suspecrt, she sees this as an alternative career.

Well there aren't too many in a better position to persuade her otherwise.

Did you manage to put her off?

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Get this guys: in my local rag there was an article about the new village 'beauty queen'. Looked like an Indian babe as it happens. Very cute. Anyway, what was her ambitition (at the tender age of 16)? To be a PROPERTY DEVELOPER! :lol:

its cultural... 70% of asians ive worked with in the south east over the last 10 years have bought a btl property

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Surely the UK should be full of IT millionaires by now wasnt that the dreams of college students around 2000.....

About the time I got my honours degree- I am really so glad I didnt go on to do some half-arsed IT diploma. Several of my friends did that and NOT ONE of them currenty works in IT. One of my best mates dropped out of Uni half way through his second year to do a diploma in programming. Wasted a year and a half of top quality university education and hasnt written a line of code since.

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Surely the UK should be full of IT millionaires by now wasnt that the dreams of college students around 2000.....

I think Benjmin Cohen was the most high-profile of these teenage dot-com "millionaires". In the end, his shares slumped and he made himself enough to put a deposit on a flat.

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THIS BTL NOTION is scary and dangerous

I have a friend who is sliding into financial difficulty, because her freelancing is not generating enough money.

Over lunch this week (I paid), she told me she was considering MEW-ing to buy another flat, so she could rent it out and generate some income. When I told her she would be buying at the top, and may soon find herself in negative equity, she looked at me incredulously.

Then she said she woudl only buy if the rental income would cover the debt payments. The possibility of voids and repairs does not even come to her. And, yes, liek many otehrs I suspecrt, she sees this as an alternative career.

A hard rain is gonna fall in the years to come

Doesn't surprise me. My sister, already about 240k in debt with mortgage and loans also thought taking on a BTL would be a good investment. Seems to have forgot all the problems we had with our alcoholic pyromaniac tenant in our BTL, and why we sold recently (market likely to drop or crash).

Funny about the blank looks - everyone I speak to warning that asset prices are a bubble likely to burst, does the same thing. They just can't believe it. Sentiment is a powerful thing - when it goes the other way it will cause a panic in BTL's which will be where the crash comes from.

The smart way to invest in property now, is to start saving up for buying when values drop. However that demands some hard work earning money, not just signing a credit agreement... Makes me laugh when I read about stories like this - classic bubble economics. Its too late for the easy money.

Edited by sikejsudjek

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  • 302 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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