Friday, December 12, 2008
Your weekly dose of schadenfreude
One man has seen his buy-to-let empire vanish months after he could have sold it for a £500k profit. Former factory worker Rajnikant Raja took just three years to amass a buy-to-let property empire of 40 flats and houses, remortgaging each one to get the deposit for the next. The properties were worth £5.4m at their peak two years ago . But he could lose them all within a matter of weeks. Their value is falling like a stone. Raja cannot afford to keep up the mortgage payments and so far his bank has repossessed five properties. The rest are in negative equity. His £19,000 arrears is expanding by £2,500 a month, as homebuilders flood the market with rental properties, driving rents down. Raja also has unsecured debt (credit cards, loans and overdrafts) amounting to £120,000.