Saturday, May 10, 2008

Anne Ashworth Calling Cash-Rich Investors

No silver lining for first-time buyers

Apparently, first-time buyers "who are facing huge difficulties obtaining mortgages, can only stand by in frustration" because they are priced out by cash-rich investors. A very clever analysis by Anne Ashworth. Not.

Posted by quiet guy @ 07:18 PM (1507 views)
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15 thoughts on “Anne Ashworth Calling Cash-Rich Investors

  • Mytimeisnigh says:

    I’m a first time buyer and I’m over the moon about the house price crash and this is just the beginning. Falls of up to 50% are not unfeasible given the heights of the boom. I’m happy to just sit and watch and when the time’s right….I’ve got a good job and a big deposit and I’m gonna have what I want. So cash rich investors…carry on pricing me out, because I’m going to enjoy having a good laugh at your expense in a couple of years time.

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  • Wonderful combination of ruthelessness,greed and foolishness. Quite an acheivement in such a small article.

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  • A repossession order is no bad, instead it is good for the families, sure sure… “In some cases, a repossession order can be a short, sharp shock that will encourage a borrower who is in denial about his arrears to start talking to his lender about ways in which the debt burden can be lessened or rescheduled.” sure the burden can be lessened, for instance taking interest only mortgage… but hey families are ALREADY on interest only mortgages, maybe they can release equity waiting for interest rates to come down, but hey the loan to value ration is ALREADY 110%…

    “For the moment, the Council of Mortgage Lenders is still forecasting that 45,000 borrowers will lose their homes. In 1991, at the height of the Nineties property slump, there were 75,540 repossessions, many voluntary: people handed in their keys rather than continue the struggle of meeting mortgage repayments that had doubled.”

    Yes, at the heigh they were 75 thousand, but in 1989 and 1990, were – of course – less than 75,540, and probably close to 45,000 per year. Maybe someone on this site can find out how quickly repossessions ramped up in the 90s

    This Anne bricks chick is either very st*pid or just a bad liar or both

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  • But then why the title “no silver lining for FTBs”

    this really drives me mad. What is the problem if a large segment of the UK population ends up better off in this crash.

    Do you have a problem, Anne?
    what s your problem? fearing for your job and that of the swishy swashy bricks chicks? you should be afraid, there is no silver lining for your pack of lies in this crash

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  • Apparently, first-time buyers “who are facing huge difficulties obtaining mortgages, can only stand by AS PRICES DROP” more like.

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  • I have also been wondering about reposessions stats. I have one link here: http://www.dca.gov.uk/statistics/mpstats/2007/nat-q1.pdf (sorry, I don’t yet know how to create as a link). Page 2 has a nice chart of Mortgage Posession Actions that rise that start in 1990 at roughly the level that CML are predicting for this year. Now, I would equate 1990 with 2008 in the house price cycle, so on that basis we are on course for at least as bad as 1991/1992.

    It would be nice to see the CML figures, but I don’t have a login.

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  • mark wadsworth says:

    I can only echo what Mytimeisnigh says.

    See Anne Cook for charts on repo’s.

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  • Would-be first-time buyers are standing by because they cannot get a mortgage and/or they are waiting to see how far prices will drop. No information here, even anecdotal, on what prices these cash-rich investors are paying. These would have to be heavily discounted (compared with most asking prices) to make it worth their while. This sounds like just another “there are bargains out there for professional landlords who take a long view” article.

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  • Enough Already says:

    This Anne creature is clearly desparate to stir up the market. Probably worried if her portfolio looks big!
    Sounds like 1st time buyers are being sensible, after all who in their right mind would buy now knowing that prices are set to drop by up to 40%?

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  • First time buyers are not stayibng away in frustration – they just don’t want to catch a falling knife.

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  • it_is_going_with_a_bang says:

    Anne seems to mistaking the word “cash” with a word she finds hard to spell – “C r A S H”

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  • No doubt there will be plenty of professional landlords looking to buy properties at auction, but if they are really savvy they will be waiting at least four or five years to add to their portfolios.

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  • The assumption in this article is that FTBs have no disposable cash and need 100% mortgages. A lot of us have been saving for a while, just for this scenario. It would seem foolish to pile in just now – unless the said property has no reserve at auction and you’re the only guy in the room.

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  • cash rich investors buy things that go up in my experience

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  • Very true taffee. They didn’t become cash rich by constantly leveraging debt against property. If they are cash rich it is a good indication that they are good investors that have not joined in with the property madness. Why they would start buying property now I don’t know. It seems very counter-intuitive. Unless the article is a load of made-up twaddle.

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