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Little Professor

Astonishingly Irresponsible Property Ramping On Msn

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MSN Money property expert Ajay Ahuja, author of "The Buy To Let Bible" answers your questions

A reader asks:

As a 20-year old first-time buyer, can you still get onto the property ladder without a deposit?

Ajay Ahuja replies: Yes!Even though the 100%+ mortgages have been withdrawn it is still possible. You have to be a bit inventive but there are

three ways you can get on the property ladder with nothing in the bank.

1. Combine an overdraft with a cashback mortgage

There are mortgages out there that pay you a cash gift when you take out the mortgage which can be up to 6% of the amount borrowed. Now these mortgages are a maximum 95% loan to property value so you need a 5%deposit.

Now here is the clever bit. You go to your local branch manager and ask for an overdraft to the value of the 5% deposit which most banks are glad to do since they earn a nice tidy sum if you use it. When the solicitor requests the deposit you access the overdraft to pay over the deposit and then pay back the overdraft when the cashback comes in.

In effect you get paid to buy a property. In reality the remaining cash goes to pay for solicitor fees and other sundry costs but the key point here is you got on the property ladder with no money from any of your savings.

This is how I bought the first property I used to live in.

2. Combine a personal loan with a 90% mortgage

It's fairly widely known that if you put down a 10% deposit the borrowing rates are much more sensible.

If you do not have a 10% deposit just borrow it.

So if you see a house for £100,000 then all you need to do is borrow is 10% which equates to £10,000.

This way you can get on the ladder quicker than having to wait to save up for a 10% deposit (and property prices might rise as well) and benefit from great rates such as 5% APR and there are no higher lending charges either.If you can't afford the personal loan you could go for borrowing £10,000 on credit cards at 0% APR which will bring the cost to almost nil but you will have to do a bit of juggling as the 0% offers typically only last for a year at the most.

I bought the property I live in currently this way.

3. Create vendor deposit

This is where in effect the vendor pays the deposit for you.

It involves the property being valued in excess of what the vendor is selling to you for. If this is the case then you can avoid paying a deposit of up to 5% which is the maximum allowed vendor deposit for most lenders.

So for example if you found a property for £95,000 and the property got valued at £100,000 then you could go in for a 95% loan to value mortgage the lender will lend 95% on the purchase price which has been set at £100,000 thus the amount being lend is £95,000 which is the net price agreed with the vendor.

So:

The net price: 95,000

The amount lent: £95,000

The amount required from you: NIL

Again no money is required from you.

For more tips and tricks join my free property course

http://money.uk.msn.com/Mortgages/firsttim...umentid=7701212

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If this was 1997 -2001 would be great advice.

Love the gist of this article

BUY PROPERTY PEOPLE!

Meanwhile the author has just released these books:

Getting Out Before A Crash and How To Make A Fortune On The Internet

He's offloading his property "empire" and moving on to the next bubble.

Incidentally, of the 170 properties he bought, none cost more than £60,000. Meanwhile he has been flogging £250,000 "luxury apartments" to the mugs that come to his property seminars.

Edited by Little Professor

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Here's the portfolio:

http://www.ahuja.co.uk/my_property_portfolio

We'll see how accurate his 'estimated values' are when/if he sells up. What's for certain is that he owes the bank £6 million.

......hang on, where's his running costs for a portfolio of 170 cheap flats. Does he run the whole portfolio himself, with no voids or maintenance costs?

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this is a joke yes? how do you complain against the article? i'm not quite sure if he's encouraging people to break the law, but it's certainly dishonest if not reckless what he's encouraging. he should be arrested... alongwith the 60 solicitors i read about today

i was bearish about house prices in 2004. i was wrong. is it cos of loose global lending standards? partly. is it cos of lying and fraud? possibly too.. house prices probably did peak in 2004 but have been ramped up by lying solicitors since!

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<tongue in cheak> I think this guy is fantastic. </tongue in cheak> How does he pay his monthly repayments, personal injury claims when people have smacked his cheaky little mouth in.

This guy represents everything I hate about borrowing money.

Edited by debt-free

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Goo god, what an absolute tw*t.

Clearly he is worried about a crash and is trying to ramp property for everylast penny.

I hope hes followed the advise in his book and got out while he can, although I guess not, which is why he's writing this nonsense.

And one last thing Ajay, sort your table out on your website.have it coming down in columns not rows, it's hard to read how much your 'worth'.

Clearly a donkey.

p.s. Is rent VATable?

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I physically want to destroy this man.

How about chaining him to some railings somewhere like Bracknell in the near future when 50% are in negative equity and handing out this article to passers by? :ph34r:

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His website is crap (`he cannot spell `purchased`) :lol:

He looks so dodgy (`psst...got an eighth for a tenner mate!`)

Also he states

now I command a property portfolio worth £13m

yet his crap table tells us

£11,573,000.00 Estimated Value

Which is it? Completely over-hyped-fraudulent value anyway and then he adds 1.5mil :blink:

absolute b0ll0cks :angry:

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i would LOVE to see an example of his portfolio.

Property 6 for example. WHat on earth has he bought in Sept 07 for 33k?

A fvckin garage?

he should present jackanory.

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Guest An Bearin Bui

What a chav that guy is. Surely the advice he gives in point 3 is borderline illegal?

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...the guy is a VI who is doing anything to try and stimulate demand...the surprising thing is MSN have given him a stall at this time with these views.....are they slow on the uptake ......even the most bullish of bulls are now aware of the present....why are MSN into this...?..... <_<

Edited by South Lorne

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I've just noticed the link at the bottom of Ajay's article. It goes to another one of his websites:

http://www.first-time-buyer.org.uk/

Obviously this MSN article is nothing short of an advert - and a very dodgy one at that. Frankly it's downright fraud. What do you learn on Ajay's 'free course'? Among other things:

* How to raise your first deposit quickly

* All the mortgage companies, with their criterias for First time buyers including 125% LTV and high income multiple mortgage lenders

* How to increase your salary!

I'm half tempted to sign up to the course to see if that last point is actually what I think it is. Lie to Buy tips and tricks if ever I saw it.

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i would LOVE to see an example of his portfolio.

Property 6 for example. WHat on earth has he bought in Sept 07 for 33k?

A fvckin garage?

he should present jackanory.

Not only that but since September 2007 Ajay reckons it's increased 36% to £45k. Not bad in five months eh? Annual inflation of 86%.

....or then there's Property 25, bought in February 2007 for £27.5k and now 'worth' £68k - a 147% increase in a year.

What a clown. How come MSN gives him a platform to spout this tosh.

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reader asks:

As a 20-year old first-time buyer, can you still get onto the property ladder without a deposit?

Ajay Ahuja replies: Yes!Even though the 100%+ mortgages have been withdrawn it is still possible. You have to be a bit inventive but there are three ways you can get on the property ladder with nothing in the bank

Can't he be sued for that when the sh*t hits the fan? what a muppet!

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  • 297 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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