Colossal Buy to Let Loss

oldMcDonald

Dithering_Dad wrote: »

Nope, definitely on the "nice guy/gal" list.

How're you and your 'lil one getting on today?

We're doing good

You have been in fine form on these forums these past couple of days. Enjoying it *

*eek, does my saying that mean I am now going to be a DD alias, too?;)

Dithering_Dad

oldMcDonald wrote: »

We're doing good

You have been in fine form on these forums these past couple of days. Enjoying it *

*eek, does my saying that mean I am now going to be a DD alias, too?;)

Probably. At the very least your card will be marked and revenge will be sought against you for 'fratenising with the enemy'. I doubt the Housing Nazis will have the nerve to put you against a wall, but some low-level harassment might be coming your way.

I reckon you're tough enough to endure it though

GDB2222

Pobby wrote: »

Back on topic. This, in a way, reminds me of a friend across the pond. Earning over £150,000 selling mortgages. Bought a property, about a year and a half ago it was valued @ £325,000. Job went ( mortgage broker), had to leave the property and rent as the house needs to sell pronto and I do hope that my friend gets as much of her deposit back as possible.

Reminds me of someone I knew who in 1988 took out a second mortgage on his home in order to set up his own mortgage brokerage. It was obviously bad timing, but he should have thought about the concentration of risk.

Conrad

The mortgage industry is populated with sickeningly positive, indeed, deluded types.
I had a number of discussions even last year with groups of brokers that were buying new build flat BMV - they thought me a mad doomsayer for warning them of thier folly.
One even as late as January this year was buying these in Manchester and indeed encourging others to join him.

There is something about the mindless conformity of brokers that is most unsettling.

A Northern Rock Rep was one of these uber positive robots. I asked her back in 2006 how on Earth they would survive given all the 125% loans they were doing. She just brushed away my question as if I were talking martian.

Why do people conform in this way? Why dont they ask the awkard questions?
Why in group meets to I always feel everyone else just agrees with what ever is being said?
Are people afraid to appear negative / an outsider?

Dithering_Dad

Conrad wrote: »

The mortgage industry is populated with sickeningly positive, indeed, deluded types.
I had a number of discussions even last year with groups of brokers that were buying new build flat BMV - they thought me a mad doomsayer for warning them of thier folly.
One even as late as January this year was buying these in Manchester and indeed encourging others to join him.

There is something about the mindless conformity of brokers that is most unsettling.

A Northern Rock Rep was one of these uber positive robots. I asked her back in 2006 how on Earth they would survive given all the 125% loans they were doing. She just brushed away my question as if I were talking martian.

Why do people conform in this way? Why dont they ask the awkard questions?
Why in group meets to I always feel everyone else just agrees with what ever is being said?
Are people afraid to appear negative / an outsider?

It is amazing that NR couldn't do basic arithmetic and calculate that pushing people at the poorer end of the economic spectrum, who have absolutely no savings or other assets into 25% negative equity would result in wholescale bankruptcies.

Then again, didn't Peter Rigsdale come from that neck of the woods too? 125% mortgages and a free tank of tropical fish anyone?

lostinrates

Dithering_Dad wrote: »

Studios aren't a bad investment, it's just that you have to remember that the only people who you can sell them onto are other investors. No one in their right mind would buy a studio to live in - except maybe if the square footage was huge and it was more like an 'open-plan living' space.


.

I agree egos can be a liabilty;) DD.

What I'm hoping now is someone who feels that studios in a city like London are always going to be a poor investment and/or detrimental for the market as a whole can expend on why for me? (to be absolutely clear I'm looking for illumination not casting aspertians on anyone's opinion).

I understand that they are going to suit a very niche market and terefore might push up the price or FTB. Is the answer to declassify them as fulltime residential or somethng so as not to confuse the normal residential market? To tax them or licence them differently? Would this be further complicating and add to market confusion?

Dithering_Dad

lostinrates wrote: »

Is the answer to declassify them as fulltime residential or somethng so as not to confuse the normal residential market? To tax them or licence them differently? Would this be further complicating and add to market confusion?

It'd be much fairer if they did. I have to pay council tax on both my home property and my rental one (albeit with single use discount).

If I stayed in a hotel room or even rented a serviced apartment from a hotel chain then I wouldn't have to pay any council tax. I generate the same amount of rubbish, use the same services yet in one instance I have to pay and in the the other I don't.

lostinrates

Dithering_Dad wrote: »

It'd be much fairer if they did. I have to pay council tax on both my home property and my rental one (albeit with single use discount).

If I stayed in a hotel room or even rented a serviced apartment from a hotel chain then I wouldn't have to pay any council tax. I generate the same amount of rubbish, use the same services yet in one instance I have to pay and in the the other I don't.

Don't you pay in the hotel through the room price? Would it be fairer? I don't know! That'swhy I'm asking!

GDB2222

Yes, the hotel pays commercial rates.

mewbie_2

Dithering_Dad wrote: »

I generate the same amount of rubbish....

I can believe that.