Jump to content
House Price Crash Forum
billy-g

Mindset Of The Big Boys

Recommended Posts

Right, no secret to most on here, I am a landlord (cue the boo and hiss) albeit on a (just) single figure scale of properties I own (outright) and let.

It is also no secret to many I am quite bearish on some parts of Scotland, slightly bullish on others.

Today, I had lunch with a friend, who introduced me to two of his business associates who are into property in a BIG way. One has 180 flats, the other has 40 odd, and has just done a deal with a builder to purchase another 100 off plan.

On hearing this, I nearly dropped my pasta as well as my jaw.

No matter how many arguments I put forward for getting out of property (as I am thinking of doing), not buying more, they both stuck to their guns. They even welcomed interest rate rises, 'as many as possible please', as it meant only the monied class (like them I guess) could keep buying more homes.

I came away from the meeting about as shocked by anything as I have been for a LONG time.

Anyone else got any thoughts on this mentallity, or am I the one who is losing it? These are both self made, hard working guys BTW.

Edited by billy-g

Share this post


Link to post
Share on other sites

I think it's more complex than that. There are a number of factors. I think the main one is that they are suffering from the same syndrome as most home-owners - head in the sand - they don’t really believe that prices are going to collapse. Only a fool would buy 100 properties now if they thought prices might fall and, if these guys are 'self-made' then they are not complete fools.

In fact I think that this is linked to the second factor, which is that they are used to being entrepreneurial and moving forwards and not going back on an earlier decision - they are used to being right and simply don’t believe that things could go wrong for them. They see this further ‘investment’ as building on their earlier successes. In short, they are being pig-headed and throwing their money around.

It reminds me of a developer who bought a single building plot near us in early 1989 for £210k (we subsequently sold out house, on a much larger plot, in 2005 for the same figure..) - I remember someone describing it as X talking with his cheque-book. He just enjoyed looking like the big guy. He lost quite a bit on that one... ;)

Share this post


Link to post
Share on other sites

No matter how many arguments I put forward for getting out of property (as I am thinking of doing), not buying more, they both stuck to their guns. They even welcomed interest rate rises, 'as many as possible please', as it meant only the monied class (like them I guess) could keep buying more homes.

I came away from the meeting about as shocked by anything as I have been for a LONG time.

On the face of it, wishing for as many interest rate rises as possible when you

own 100 properties seems quite stupid.

Without knowing exactly what their situation is regarding how all this is financed,

it's impossible to say quite what degree of stupidity we're looking at.

Share this post


Link to post
Share on other sites

Right, no secret to most on here, I am a landlord (cue the boo and hiss) albeit on a (just) single figure scale of properties I own (outright) and let.

It is also no secret to many I am quite bearish on some parts of Scotland, slightly bullish on others.

Today, I had lunch with a friend, who introduced me to two of his business associates who are into property in a BIG way. One has 180 flats, the other has 40 odd, and has just done a deal with a builder to purchase another 100 off plan.

On hearing this, I nearly dropped my pasta as well as my jaw.

No matter how many arguments I put forward for getting out of property (as I am thinking of doing), not buying more, they both stuck to their guns. They even welcomed interest rate rises, 'as many as possible please', as it meant only the monied class (like them I guess) could keep buying more homes.

I came away from the meeting about as shocked by anything as I have been for a LONG time.

Anyone else got any thoughts on this mentallity, or am I the one who is losing it? These are both self made, hard working guys BTW.

just a thought but it sounds like these guys were fishing for some of that equity you have and talking up a good game, hoping you might want a piece of it. Rarely do 'buisness associates' do lunch and talk about their buisness just for the fun of it. Could be completely wrong (certainly not the first time) but would be curious to know if they know what you got and if they contact you with any deals in the near future.

Share this post


Link to post
Share on other sites

Thanks for all the replies and thoughts guys; sorry about the delay replying, I've been kinda busy.

Basically, what they didn't know (and I told no one really) is that I put all my properties, bar one (and the home I live in obviously), up for sale in June.

They have now all sold, and the cheque hit the matt this morning from the solicitor. Maybe I got the timing wrong, or not. Who cares, I dont. I'm happy with what I have made.

As for these two guys though, they are both intelligent, hard working, blue collar lads made good. Both with there own businesses. I hope it works out for them. I really do.

But me? Like I say, I have kept one on, but apart from that, I'm out...

Edited by billy-g

Share this post


Link to post
Share on other sites

Did these guys start buying in 94/95 when it was completely unfashionable to be in property, but the right time to get into the market?

Or are they latecomers who jumped on when it became a "clever" thing to do?

If they're capable of independent thought maybe I'd give them the benefit of doubt.

Share this post


Link to post
Share on other sites

Lol, no mate; I bought my first one in '96 when I was told I was 'mad'.

They started in '02 and '03.

Ok, so they followed the herd.

I doubt they understand how much danger they're in.

Actually that might not be completely true, there's an old saying:

If you owe the bank a million you're in the sh!t.

If you owe the bank 100 million, the banks in the sh!t.

Share this post


Link to post
Share on other sites

Anyone buying huge blocks of flats apartments off plan from builders developers these days must be insane - if they were that savvy they'd be buying land and building HOUSES to rent or investing abroad.

I guess they just like playing the big guy with the most pendulous bol hucks - still this site is proof that people will believe only what they want to believe.

They dont sound like the type of guys who'd admit a mistake

PS Billy - congrats on your sales - hope to be in the same boat soon

Edited by I'M WITH STUPID

Share this post


Link to post
Share on other sites

- if they were that savvy they'd be buying land and building HOUSES to rent or investing abroad.

i actually think land buying is one of the more sensible ways to be getting "into property" at the moment.

not necessarily land with planning permission but certainly not these midget size plot parcels without consent which are sold on a get -rich- quick basis on the internet. anyone any thougths on land buying?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.