Sunday, January 13, 2008

Rich quick? Build-to-let (not Buy-to-let!!), spread betting, and stock picking… you cant go wrong!! like a walk in the park…. sure!

Give up your job and earn £100,000

"MANY of us dream of giving up the day job and making a living from our investments or hobbies, but with the housing market flat and shares looking choppy, just how easy is it?" mWUA HHAHAHHAHA HAHHAHHAHAHAHHAH HAHAHAHHAH

Posted by confused76 @ 02:17 AM (1601 views)
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14 thoughts on “Rich quick? Build-to-let (not Buy-to-let!!), spread betting, and stock picking… you cant go wrong!! like a walk in the park…. sure!

  • “Brian Strickland, 56, from Leigh-on-Sea, Essex, was able to give up his job as a management consultant in 1997 after the property portfolio he had built up with his wife Jan provided better returns than they expected.”

    1997!!

    “However, while Strickland has profited hugely from buy-to-let, he doesn’t think now is the time to be getting in. He said: “Yields are now around 5%, which is not bad going if you have a big enough portfolio. But I don’t think you can make money from buy-to-let now, as a first-timer. We decided it was time to stop buying about seven years ago because yields had fallen to about 9%. It’s funny because we thought the market was ending just as many others thought it was just beginning.”

    This article is a warning to stay away from property investment.

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  • japanese uncle says:

    The difference between those who are thinking on their own and those are thinking by their neighbors’ brains.

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  • You are so right qg.

    “We decided it was time to stop buying about seven years ago because yields had fallen to about 9%”

    Seven years ago, that’s 2001, a good few years before many of todays equity holders of BTL bought in.

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  • wdbeast, have you started selling yet?

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  • Good point. Thinking is one thing, doing is something else.

    Well, there isn’t any point in investing in property anymore. It’s effectively finished.

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  • justwatching, still waiting for the top of the market, Ha Ha!

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  • wdbeast

    in euro terms market topped back in April. in inflation-adjusted pounds too.
    do not delay your decision, you risk to be caught in the glut of BTL sales if Alastair confirms the CGT changes in april

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  • wdbeast
    was “Ha Ha” a laughter or an expression of constipation pain because you are stuck with an illiquid investment. Sorry to ask, I do not want to renew your pain

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  • Guys, you misunderstand me!

    Sarcasm sometimes gets lost on a blog I suppose.

    I am more bearish than a convension of polars, grizzlies and koalas in a nudist camp!

    Sold up last year and living in rented.

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  • This Is exactly the point with BTL – if you get in at the bottom there is more (perceived) but often less actual risk. As the market snowballs more and more people get sucked in so they compete for a finite number of tennants. As the capital price of the asset is bid up then the yield falls for those who bought later in the cycle. The original people are perceived as professionals, mostly because they have learnt to suss the problems as the market matures. People see significant “easy money” being made and make those who dont participate feel like fools. And for a while they look right, the non participants look more and more foolish. Then the music stops as the weak buyers who buy in at the top (who actually perc eive little risk when there ios the greatest risk) start to lose money, first of all those people hold on for the rebound (especially as in this case because there has been one in 2005) when the rebound doesnt happen if it sa a single BTL they will try to mitigate their loss or perhaps move into the house itself, if a portfolio they will hold on by using equity in the earlier purchasers and saying well my average cost is lower and i still have equity overall. However the guys who bought early have some major downside protection and have probably made enough yield to pay back the original asset (of course the fact that they actually might use this to fund more purchase negates this to an extent – i.e. greed takes over).

    The “fools” now dont look so foolish, but the funny thing is that the BTLs will not take responsibility, they will blame the government, or “the market” – “I didnt know a global recession / depression was about to happen no one told me – its not MY fault”. Do you think for one minute they will congratulate the “fools”? Of course not infact the prudent people effectively get punished as the real fools get bailed out at the taxpayers expense. After all even if there is a default a person can go bankrupt and only have a lost 3 years. Thats where we are I’m afraid folks.

    The guy that bought his last one in 1997 will be fine (although im a little confused as to why he has gone into a vertical intergration). But he is probably the exception as alot of people will have just continued to purchase more units using the equity they have “earned”.

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  • planning4acrash says:

    Stupid thing is, that, if you sold in 2005 and put cash into Gold, you’d have been uber rich now. Always something else to go into, and a rebound is a last gasp, too risky for me. People think that houses are the only investment! Shouldn’t school teach investment? Surely your education and earning potential is about 50% of your wealth, whilst what you do it is the rest. Surely the nation would be better off with an education into markets, they form the basis for our economy but most don’t have a clue about them, meanwhile, the moneylenders manipulate the sheeple!

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  • Well yes PFC timing is obviously everything! So if you bought gold in 2005 you are assuming it was held until Friday? Next week? Next month? or the day after you bought in 2005? If you bought in 2005 then you may have lost money if you couldnt stand a loss. We can all pick a market that has risen since 2005 but that dont necc mean we would have got in it!! School should teach pyhscology! Madness of crowds by Mackay should be a required read.

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  • Well, there’s luck and good sense in investment. Obviously the “best” way to make a fortune is to put all you’ve got into the share or asset that goes up the most. Trouble is you never know that in advance – hence the reason to diversify. Those who stick everything into housing (many do) have got lucky in recent years. But luck changes with time.

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  • PFC teaching ‘investment’ is not enough, society is sick because we have become decadent, irrational, corrupt, over emotional and confused.

    It may help if schools should stopped teaching evil garbage like Collectivism, Socialism and Political Correctness, as virtues, and instead taught the values and responsibilities of Individualism, freedom, the Austrian School of Economics, critical thinking and Science, then the rot could be reversed because the new Adults maybe less tolerate of the sloppy thinking, fraud and dictatorship of previous generations.

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