Sunday, Aug 02, 2015

You can too!

Telegraph: I own most of my street

Unusually, Mr Windsor did not remortgage his existing properties in order to buy subsequent ones. He saved the required deposits while working so that he wasn’t heavily leveraged.
What are you wIting for - I hear that Enfield is ripe for the plucking.

Posted by debtserf @ 10:02 AM (6019 views)
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10 Comments

1. quiet guy said...

he first became interested in property in 2006 when house prices in his area fell by up to 50pc. "Repossessions were increasingly common and many people were put off buying property altogether, but I saw it as an opportunity to get a good deal,"

Which illustrates a problem with the next house price crash, which I see no sign of. BTLers will swoop in and pick up property on the cheap.

Luckily, we have an enlightened political system determined to discourage rent collecting and encourage rising home ownership.

Sunday, August 2, 2015 10:33AM Report Comment
 

2. icarus said...

House prices fell by 50% in 2006??

And what's all this emphasis on continuous 'stress testing' as though avoidance of leverage were some secret of success. Banks don't think so

Sunday, August 2, 2015 10:44AM Report Comment
 

3. wdbeast said...

Something wrong with the maths here!

"He charges between 600 and 650 a month in rent"

"Mr Windsor calculates that his portfolios gross return the rental income as a percentage of the cost of the properties is 19pc"

So simple maths says he payed about 39,500 per property on average.

He also says that he bought the first property (and presumably the cheapest) for 62,500.

He may be a Cambridge graduate and think he has stress tested his finances for all eventualities but is this is an example of his maths, then I fear for his future!!

Sunday, August 2, 2015 12:01PM Report Comment
 

4. jack c said...

Cambridge graduate shouts from the rooftop of one of his houses "house prices only ever go up" so it must be true

Sunday, August 2, 2015 01:08PM Report Comment
 

5. icarus said...

As for those 'good employment opportunities' for migrants who pay 600+ pm rent he must be talking of the super-exploited migrants in Thetford who have been under the thumb of gangmasters recruiting for very low-paid / no-frills jobs in picking, cutting and packing for the just-in-time supermarket demand.

Thetford lost 700 jobs with the closure/relocation of the local 'Tulip' plant (cutting and packing Danish, intensively-farmed pork) in 2007, just as this chap was starting out. Being migrants herded by said gangmasters most of the 700 were entitled to nothing. Most of the other migrants in the town were in zero-hours-type jobs working until midnight one day, unemployed the next - definitely not the jobs that fit in with a settled family life and workers paying regular rents (most not entitled to HB).

Sunday, August 2, 2015 01:16PM Report Comment
 

6. cornishman said...

wdbeast said...
Something wrong with the maths here!

I thought that as well when I first saw it.

But maybe he is doing the calculation using the income left after he has paid his mortgage etc as a percentage of just the cash he put in to start with. Ignoring the actual value of the house.

Sunday, August 2, 2015 03:54PM Report Comment
 

7. wdbeast said...

Hi cornishman - yes I am sure you are right, but I would have expected a more robust set of figures from a Cambridge graduate, though he probably read psychology (definitely not history!!)

Sunday, August 2, 2015 04:31PM Report Comment
 

8. cyril said...

Clearly not your average student if he managed to save 6 grand while at university! Most people end up with 30k debts so he must have the MIdas touch.

Monday, August 3, 2015 08:47AM Report Comment
 

9. taffee said...

Bought first property at the peak of a housing bubble...must have Midas touch.

What surprises me is how landlords just assume tenant demand will never be an issue

If rates start to rise he will likely fall into negative equity and with ftbs buying properties
From liquidated btl portfolios who's gonna rent all the btlets?

Monday, August 3, 2015 08:55AM Report Comment
 

10. Catdog1121 said...

He is probably taking into account increases in the value of the property in his calculation... The worry I would say will be if they dropped 50% in value before and he has on average 80%ltv what if they drop by 50% again in the future.

Would not be so worrying if they were on repayment as at least the debt would be being paid off...

Monday, August 3, 2015 06:28PM Report Comment
 

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