200,000 buy-to-let investors lose up to 90% of their cash

dopester

MissMoneypenny wrote: »

Just visiting an area is different to living there. I have lived in the north and it is fairly grim.

:rotfl:

It is going to get a lot grimmer down South too.

dopester

Although probably grimmer still up North.

dopester

dopester wrote: »

Salford or thereabouts I would imagine.

dhassen wrote: »

lol nah there's much grimmer than salford unfotunatley! I think the town in question was probably north-east... or east lancs.....

Salford was one of the £5000 or less places in what to me just seems a few years back, although I guess there were/(will be) many similar places, and I imagine things have gotten worse since the article below of September 2007.

http://www.manchestereveningnews.co.uk/news/s/1017605_hometown_woes_up_nigels_street

Home-town woes up Nigel's street
Neal Keeling
26/ 9/2007

TERRY Duckworth is back on the street... and he's not happy.

Former Corrie star Nigel Pivaro will be seen walking the streets of his home city of Salford tonight in a hard-hitting documentary.

It meant many families were trapped by negative equity as their homes were valued at as little as £5,000.

Dithering_Dad

!!!!!!? wrote: »

As long as they don't need to get access to any of that money and can afford to service the debt on the cash they borrowed to buy the asset then they can leave it in the 'investment' and not sell - hoping that the value recovers, yes.

Chances are that you didn't borrow money to buy your shares so you are not exposed to leverage. As I said in my post thanks to leverage they are exposed to potential losses which are multiples of their investment. With the economy set to worsen and the credit crunch predicted to last maybe into 2010, that's newsworthy.

If I were one of these investors with tens of thousands of my own cash tied up and the potential of losing 30,40,50k or more at a time when recession was looking likely then it'd certainly give me pause for thought.

I guess one could argue that if you have any debt, including a mortgage then making any investment could be regarded at gearing. For instance, if I have a mortgage of £100k and decide to invest a 20k windfall in some shares instead of making a 20k overpyament on my mortgage, I'm effectively borrowing money to invest in shares.

I know what you mean though about mewing and investing it into a BTL. Not something I'd be prepared to do, but then I've always though BTL was flawed - you get similar if not better returns in the stock market without any of the hassles involved with being a landlord.

Generali

Gorgeous_George wrote: »

Generali

You really let yourself down with ignorant views like that

Try visiting the North and you will find that there are as many nice places as there are down South. I live in Somerset and there some are horrid places down here. Have you been to Wembley? Or most of the London suburbs for that matter.

The people up North are generally great people - proud of their industrial past. The past that Great Britain was built on. Yes there are some scum but there are scum everywhere.

You have probably never made anything in your life.

GG

There are some lovely places in the North of England. It's just that there also seem to be a lot of towns with little or no economy to speak of whose terraces used to sell for the sort of sum you could put on a credit card not so long ago.

There are, as you say, many terrible places in the South and London, eg most of South East London, most of East London, many new towns, many of the outer suburbs, lots of the seaside resorts and so on.

I am not anti-Northern. I am anti-Hell Hole.

I am half Northern - my Dad's family are from South Shields.

I have made many things in my life. I've got 2 kids for a start.

dial8d

at the risk of being laughed off the forum, can someone explain to me what "mewing" is ?

:huh:

Dithering_Dad

Actually, the Northwest (where I'm from) has two areas of outstanding natural beauty; The Peak District (England's first national park) and The Lake District (England's largest national park).

MissMoneypenny

Generali wrote: »

.

I am half Northern - my Dad's family are from South Shields.

South Shields in in the North East, not the North.

geoffky

Dithering_Dad wrote: »

I guess one could argue that if you have any debt, including a mortgage then making any investment could be regarded at gearing. For instance, if I have a mortgage of £100k and decide to invest a 20k windfall in some shares instead of making a 20k overpyament on my mortgage, I'm effectively borrowing money to invest in shares.

I know what you mean though about mewing and investing it into a BTL. Not something I'd be prepared to do, but then I've always though BTL was flawed - you get similar if not better returns in the stock market without any of the hassles involved with being a landlord.

I have been told that if you have invested your money in the footsie250 in the last ten years then your investment will be down . is this true as i read that somewhere...

Generali

dial8d wrote: »

at the risk of being laughed off the forum, can someone explain to me what "mewing" is ?

:huh:

MEW = mortgage equity withdrawal. That is another way of saying increasing the size of your mortgage to borrow money against the equity in your home.

Somebody subsequently turned the acronym 'MEW' into a verb, hence mewing.

It has nothing to do with cats.