Friday, July 4, 2008

BTL t*ts up for this investor

£175,000 flat I bought last year is now worth less than £100,000: Owner's negative equity horror

£175,000 flat I bought last year is now worth less than £100,000: Owner's negative equity horror

Posted by buddleia @ 12:52 PM (1995 views)
Please complete the required fields.



24 thoughts on “BTL t*ts up for this investor

  • “Mr Conroy and partner Caroline Faulkner secured it after a bidding war last August. Its original asking price had been £150,000.

    ‘Two bids came in at £160,000 and because we wanted it we decided to go for £175,000,’ he said. ‘At that time it only meant an extra £20 or £30 a month on a mortgage. I had it valued soon after and was told it could make £225,000.’ “

    Sorry, buddy, I’ve no sympathy for you. You made the decision to get into a bidding war and you made the decision to buy. Had you sold it for £225k, you would have been the ‘dinner table’ bore. Boasting to your friends at how BTL is your pension and how clever you are. Hard lines pal. You should have spent some time at HPC and you would have seen what was coming.

    Reply
    Please complete the required fields.



  • Such was the frantic belief in the ever-climbing prices of properties that bidding wars were common place. The confidence in prime areas especially, was so high it was apparently impossible to invest negatively. This spread to less desirable areas like a plague. Prices were effectively out of control, which has only provided more depth to the fall.
    Here is a real example of an overvalued price drop combined with the drop in a depressed market.
    IMHO this percentage is the average to expect and go by over the next 18 months. So who would rush into such a market prematurely?

    Reply
    Please complete the required fields.



  • Landedgentry says:

    haha, he’s decided to sit it out….. bet its got less than 99 years left on the lease…. haha

    Reply
    Please complete the required fields.



  • What a beauty of an article

    Reply
    Please complete the required fields.



  • £80k for a studio when you can prob get a 1 bed and then a 2 bed for not much more (if not now then soon)…and in Pimlico? These flats will be unrentable and unsaleable as the differential reduces.

    I dont mind these BTLrs having a go but if they are professionals then do yer homework mate – even have a butchers on ere. Gawd youll be going an buyin a flat dawn the ‘ol kent rhad next.

    Reply
    Please complete the required fields.



  • No wonder he’s grey at 43!

    Reply
    Please complete the required fields.



  • Cashisking says:

    ‘after its value nosedived by almost 50 per cent’

    no, the PRICE someone would pay has changed, not the VALUE

    presumably Mr Conroy hasn’t heard of the winner’s curse

    Reply
    Please complete the required fields.



  • He shouldn’t worry – he’s in it for the long haul. I wonder if he can do what the banks do and borrow on what the place will be worth in 10 years time instead of ‘marking to market’.

    Reply
    Please complete the required fields.



  • “The property… is … the size of a small double bedroom”

    “because we wanted it we decided to go for £175,000,”

    What an absolute Fing moron. He has made this rainy weekend an enjoyable one for me!!

    “Ed Stansfield of Capital Economics said: ‘Fears that the housing market would be flooded with former buy-to-let properties as landlords scrambled for the exit have, so far, been misplaced.”

    I have been thinking about this in terms of how long it will be before BTLers start coming out of the denial phase, because it is only after this that prices will really start to plummet.

    “Mr Conroy had it valued this week as he looked to release some capital to invest in a house . ”

    Oh! There we are!

    Plenty of developers with multiple 6-month projects. A small number of them are probably just about finding out their mistake. Another 6 months will shake them out. Another year after that to catch all the BTLers coming off fixed rates. I give this thing another 18 months of pure histerical fun!! Minimum!

    Reply
    Please complete the required fields.



  • inbreda – 18months without any BTLrs coming on here? Oh no please lets have a few of em back, im even starting to forget their names : David something or other Greensand or something do we really have to wait so long before we have em back on here telling us that renting is throwing money away, prices always rise in the long term and rents are going through the roof? And a few more of the old favourites – when house prices go up its a great time to be a BTLr because you make great capital gains oh and when prices go down ? no its a great time to invest because yields go up! So for BTLrs its always a great time to invest. I’m convinced.

    Now where exactly is that studio in Pimlico again??

    Reply
    Please complete the required fields.



  • it_is_going_with_a_bang says:

    I hope it REALLY hurts.

    Its people like him that really pushed the market to the inflated levels it got to.
    I was told – we thought – la de da.

    Tough s**t buddy.

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Super article.

    Reply
    Please complete the required fields.



  • mark – nice work on the housebuilders yesterday. They look to be dead men walking, but why would anyone want to bid them at the current values – surely the banks are gonna take a hit its just how big?

    Reply
    Please complete the required fields.



  • The “flat” is just 120 square foot! That’s ridiculously miniscule – even my office at work is bigger than that. There are cars on the road with more square footage, and even a car wouldn’t depreciate that fast….

    Reply
    Please complete the required fields.



  • little professor says:

    I think my kitchen is bigger than that 😀

    Reply
    Please complete the required fields.



  • Have you seen the comments under the article!!

    Better than the article itself!!

    Oh what a fantastic weekend this is turning out to be!

    Reply
    Please complete the required fields.



  • inbreda @ 5:36

    Yeah, they made my day too. Seems like they all ‘wish him well’.

    Reply
    Please complete the required fields.



  • who stole my pension? says:

    “Maurice Conroy, who owns a string of buy-to-let flats,” and this is only one of his properties. I wonder what the others are worth now!

    Reply
    Please complete the required fields.



  • who stole my pension? said…
    “Maurice Conroy, who owns a string of buy-to-let flats,” and this is only one of his properties. I wonder what the others are worth now!

    About 50% of the cost…………………(ignoring cost of living)

    Reply
    Please complete the required fields.



  • mark wadsworth says:

    Techieman 5.16, my pleasure.

    The beauty of this is that the Texas Pacific Group walked away from the B&B deal and are now stumbling blindly into Taylor Wimpey. And will no doubt walk away in a couple of weeks. On that I’d stake money.

    Reply
    Please complete the required fields.



  • I wonder where my vermin poision is ? ( I would say rat but that is offensive to rats who are intelligent)

    Reply
    Please complete the required fields.



  • “Mr Conroy had it valued this week as he looked to release some capital to invest in a house”

    Yes folks, he actually thought it had gone up in value!

    If it’s this one
    http://www.houseprices.co.uk/e.php?q=%0985%2C+Ground+Floor+Studio+Flat%2C+Winchester+Street%2C+City+Of+Westminster%2C+London%2C+Greater+London%2C+SW1V+4NU&n=100
    then we’re back below 2003 prices.

    Reply
    Please complete the required fields.



  • Silly sod. You think he would have been a bit more careful with all that money.

    Reply
    Please complete the required fields.



  • it_is_going_with_a_bang says:

    Love this comment

    “He seems to have bought a large cupboard. There should be a law against classifying 120sqft as a human residence. It should not be allowed to be rented out except as storage space.

    – R. Soles, Belgravia, London, 4/7/2008 13:40”

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>