Thucydides Posted July 15, 2008 Share Posted July 15, 2008 Hello,I've just been chatting to a friend of mine. He's in love, bless him, and has this brilliant idea to buy a house with his girlfriend (who he's known for less than a year) and her brother. Her Dad will be "giving" them money for a deposit, 20-30k or thereabouts. The plan is, they will sell the house in 5 years, they then take the "profit" and buy their own houses. He won't be paying anything towards the mortgage, he'll be saving £500 a month to use as extra deposit when they sell the house. But has openly said on several occasions he has trouble saving, as he spends it all on the gf. It will all end in absolute failure. I've tried to tell him, but he's having none of it and even believes prices will raise again soon in his area (Lichfield). He's older than me, quite arrogant and thus will not listen. Never mind - Just thought I'd share the stupidity! They'd get a better return if they took that 30k and set fire to it. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted July 15, 2008 Share Posted July 15, 2008 section him Quote Link to comment Share on other sites More sharing options...
PhoneyMcRingRing Posted July 15, 2008 Share Posted July 15, 2008 I love that bit.. The plan is, they will sell the house in 5 years, they then take the "profit" and buy their own houses. Oh dear oh dear. Don't people have a basic grasp of maths now? Phoney Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted July 15, 2008 Share Posted July 15, 2008 Sadly, much as you might want to spare your friend a lot of pain and financial loss, in the end, he has to live his own life.You have at least offered him advice that you think is sound. You may think that you ought to be doing more, that's understandable. However, I think you would be better off leaving him to it. From the sound of it he's not going to listen however hard you push the issue. Many of life's lessons can be mightily expensive. Spot on. Mrs Avenger has slowly come around and agrees that we were better off not buying, but by God, was it hard sometimes. Still, we're now looking to the future Quote Link to comment Share on other sites More sharing options...
winkie Posted July 15, 2008 Share Posted July 15, 2008 Hello,I've just been chatting to a friend of mine. He's in love, bless him, and has this brilliant idea to buy a house with his girlfriend (who he's known for less than a year) and her brother. Her Dad will be "giving" them money for a deposit, 20-30k or thereabouts. The plan is, they will sell the house in 5 years, they then take the "profit" and buy their own houses. He won't be paying anything towards the mortgage, he'll be saving £500 a month to use as extra deposit when they sell the house. But has openly said on several occasions he has trouble saving, as he spends it all on the gf. It will all end in absolute failure. I've tried to tell him, but he's having none of it and even believes prices will raise again soon in his area (Lichfield). He's older than me, quite arrogant and thus will not listen. Never mind - Just thought I'd share the stupidity! What's the problem, as long as he doesn't put his name on the deeds... let the girlfriend and her brother buy the house with the deposit given by their father... live rent free, and save like crazy, the relationship may work, it may not, either way he will fail to lose financially. Quote Link to comment Share on other sites More sharing options...
eightiesgirly Posted July 15, 2008 Share Posted July 15, 2008 Hello,I've just been chatting to a friend of mine. He's in love, bless him, and has this brilliant idea to buy a house with his girlfriend (who he's known for less than a year) and her brother. Her Dad will be "giving" them money for a deposit, 20-30k or thereabouts. The plan is, they will sell the house in 5 years, they then take the "profit" and buy their own houses. He won't be paying anything towards the mortgage, he'll be saving £500 a month to use as extra deposit when they sell the house. But has openly said on several occasions he has trouble saving, as he spends it all on the gf. It will all end in absolute failure. I've tried to tell him, but he's having none of it and even believes prices will raise again soon in his area (Lichfield). He's older than me, quite arrogant and thus will not listen. Never mind - Just thought I'd share the stupidity! Flippin' eck, I'm not surprised he's not listening to you. He's putting no money down, no money in, saving a wad and enjoying a happy $hag shack at the same time. Beggared if I can see the downside! Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted July 16, 2008 Share Posted July 16, 2008 Flippin' eck, I'm not surprised he's not listening to you. He's putting no money down, no money in, saving a wad and enjoying a happy $hag shack at the same time. Beggared if I can see the downside! The brother, in an ideal world that would be a sister Quote Link to comment Share on other sites More sharing options...
othello Posted July 16, 2008 Share Posted July 16, 2008 Driven by his dick... let he who isn't cast the first stone! Quote Link to comment Share on other sites More sharing options...
Guest Mr Parry Posted July 16, 2008 Share Posted July 16, 2008 Driven by his dick... let he who isn't cast the first stone! She must be a right nasty whore . . . Quote Link to comment Share on other sites More sharing options...
Guest Bart of Darkness Posted July 16, 2008 Share Posted July 16, 2008 The brother, in an ideal world that would be a sister And they would be twins. Quote Link to comment Share on other sites More sharing options...
hpc-craig Posted July 16, 2008 Share Posted July 16, 2008 If you've told him and he ain't listening, I don't think there is much more you can do. As others have pointed out he won't be on the mortgage, so in theory he may be able to walk away at any time as he would just be a lodger, athough a lodger who is poking the mortgage holder so there is more of a tie than usual. Quote Link to comment Share on other sites More sharing options...
adrian777uk Posted July 16, 2008 Share Posted July 16, 2008 Sadly, much as you might want to spare your friend a lot of pain and financial loss, in the end, he has to live his own life.You have at least offered him advice that you think is sound. You may think that you ought to be doing more, that's understandable. However, I think you would be better off leaving him to it. From the sound of it he's not going to listen however hard you push the issue. Many of life's lessons can be mightily expensive. Yeah I agree, you've proffered your opinion, leave it at that. Any more, and you're not going to be liked or thanked for it. I have both a cousin who's doing the same thing now with his partner, and a friend who's recently done the same (exchanged in May believe it or not). I think they all need their head read personally but what can you do? If they're too thick to understand for themselves what's happening in the world then that's their problem. Quote Link to comment Share on other sites More sharing options...
Tonkers Posted July 16, 2008 Share Posted July 16, 2008 Yeah I agree, you've proffered your opinion, leave it at that. Any more, and you're not going to be liked or thanked for it. I have both a cousin who's doing the same thing now with his partner, and a friend who's recently done the same (exchanged in May believe it or not). I think they all need their head read personally but what can you do? If they're too thick to understand for themselves what's happening in the world then that's their problem. We need the HPC Darwin awards. Quote Link to comment Share on other sites More sharing options...
Extradry Martini Posted July 16, 2008 Share Posted July 16, 2008 Property prices always go up in the long term. Once this irresponsible doom and gloom in the press stops, it'll be time to get back in and prices will go back up as quickly as they fell. Its about supply and demand and in this country supply is limited but everyone needs somewhere to live. Quote Link to comment Share on other sites More sharing options...
Guest Winnie Posted July 16, 2008 Share Posted July 16, 2008 He's a t1t. Let him learn the hard way. Oh yeah, tell him the house thing is a bad idea too. Perfect - that "love" thing is really very temporary isn't it....... What a trio of muppets (esp. the Dad needs his head read) Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted July 16, 2008 Share Posted July 16, 2008 Property prices always go up in the long term. Once this irresponsible doom and gloom in the press stops, it'll be time to get back in and prices will go back up as quickly as they fell. Its about supply and demand and in this country supply is limited but everyone needs somewhere to live. You are mad and clearly completely ignorant of the history of credit blow outs. Always better to buy at the bottom of a market cycle than at a top. Quote Link to comment Share on other sites More sharing options...
Extradry Martini Posted July 16, 2008 Share Posted July 16, 2008 (edited) You are mad and clearly completely ignorant of the history of credit blow outs. Always better to buy at the bottom of a market cycle than at a top. That's what they said last time , but anyone who stuck it out made £££. A win-win situation using other people's money. Edited July 16, 2008 by Extradry Martini Quote Link to comment Share on other sites More sharing options...
Extradry Martini Posted July 16, 2008 Share Posted July 16, 2008 and the experts say that interest rates are probably going down now, so house prices can't fall much more. Quote Link to comment Share on other sites More sharing options...
Shrink Proof Posted July 16, 2008 Share Posted July 16, 2008 section him Er, no. As I posted on another thread, yer average psychiatrist will only section someone if they're thought to be treatable. Which this guy ain't.... Quote Link to comment Share on other sites More sharing options...
Guest Mr Parry Posted July 16, 2008 Share Posted July 16, 2008 That's what they said last time , but anyone who stuck it out made £££. A win-win situation using other people's money. Extradry's correct. Only a change in demographics and the possibility that this is the end of Soros' superboom can change the fact that, if bought at the right time in the cycle, property can win over most other investments. Sold flats in 1990 at the top. One for £34,500 the other £42,000. Bought the 1st one back in 1995/96 for £17k the other for £20k. Quote Link to comment Share on other sites More sharing options...
Hector's House Posted July 16, 2008 Share Posted July 16, 2008 Sadly, much as you might want to spare your friend a lot of pain and financial loss, in the end, he has to live his own life.You have at least offered him advice that you think is sound. You may think that you ought to be doing more, that's understandable. However, I think you would be better off leaving him to it. From the sound of it he's not going to listen however hard you push the issue. Many of life's lessons can be mightily expensive. This is sound advise. I backed off from trying to get my BTLer friend to see sense when he started getting very bullish evey time I was around and told me the people on this site were a load of idiots. Luckliy I spend most of my free weekends out of town with my partner so avoiding any potential conflict wasn't a problem. We met up again at a do we'd both been invited to a couple of weeks ago and he actually apologised and said he'd wished he'd listened to me and started acting on the advise a year ago. He may still be in the sh!*e yet but at least he's stopped buying. What I've learnt from it is that it is very easy in these distorted times for the whole issue of housing to wreak friendships. And I haven't been tempted to tell him 'I told you so' cus it really doesn't need saying. Although you want to stop your friend making a huge mistake it is probably best to bite your lip and leave him to it. You'll still be around when it all comes collapsing around his ears to give him your friendship and support. Quote Link to comment Share on other sites More sharing options...
Extradry Martini Posted July 16, 2008 Share Posted July 16, 2008 Extradry's correct.Only a change in demographics and the possibility that this is the end of Soros' superboom can change the fact that, if bought at the right time in the cycle, property can win over most other investments. Sold flats in 1990 at the top. One for £34,500 the other £42,000. Bought the 1st one back in 1995/96 for £17k the other for £20k. I didn't write that so that people would agree with me! Quote Link to comment Share on other sites More sharing options...
Guest Mr Parry Posted July 16, 2008 Share Posted July 16, 2008 I didn't write that so that people would agree with me! You're still correct. Buy them at the bottom of the trough, sell at the top. Where's that graph showing property price inflation since 1900 and something versus wage/goods inflation? Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted July 17, 2008 Share Posted July 17, 2008 That's what they said last time , but anyone who stuck it out made £££. A win-win situation using other people's money. Provided you buy at the bottom and sell at the top, like all other investments...or at least buy at an historical average. Now is NOT the time to buy. Suggesting that it is a rational investment decision, even if it will work out over the next 40 years is mad. There are better investments out there now, including sticking it under the mattress. Quote Link to comment Share on other sites More sharing options...
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