Bought Off Plan....but Cant Afford It Now!!! Please Help!!!

islandannie

RecoveringAlcoholic wrote: »

Before making a substantial investment did you take independent professionally qualified legal and financial advice?

If not you were blinded by GREED.

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Oh for goodness sake, don`t be so miserable go and have a drink and cheer yourself up.

redrabbit29

Threads like these do bring out the worst in MSE.com.

We've covered the fact that the OP made a silly decision. Some say greedy, selfish, but we've covered it extensively none-the-less.

I think what the OP needs is a bit of help rather than numerous similar threads having another pop.

I agree with posters on here having their say, some quite rightfully, but I do think it has been exhausted now.

ad9898_3

Entertainer wrote: »

But you can't blame them for it in a moral sense which is the reasoning behind this schadenfreude. They were providing rented property and they were acting legally. It was those making policy who have contributed to this slump the most.

This is an old chestnut 'BTL'rs providing a service'. They are not providing a service, they are looking for a quick buck by hopefully getting someone else to pay their mortgage while they rely on HPI to boost their investment, which is now about to end in tears (The Wilsons anyone)

I would hazard a guess that most people in private renting are their not because they want to rent but because with the HP bubble they had no choice. BTL'rs have skewed a good proportion of the FTB market by using ' the pyramid scheme' which has ramped prices to the unsustainable level that we have seen.

This is why a lot of people are partaking in a little schadenfreude now.

PatD_2

Pyramid scheme? How?

PasturesNew

Read HelpWhereICan's posting.

It's good.

But the bottom line is: you need to get proper legal and financial advice now. Don't skimp on these. You need a good contractual solicitor and proper financial advice (not some spotty herbert down the High Street who drinks WKD and goes clubbing every Friday).

Good luck.

And keep us informed, we do like to see how people get on.

PatD_2

Well hardly a "pyramid scheme"!

stevetodd

redrabbit29 wrote: »

Threads like these do bring out the worst in MSE.com.

We've covered the fact that the OP made a silly decision. Some say greedy, selfish, but we've covered it extensively none-the-less.

I think what the OP needs is a bit of help rather than numerous similar threads having another pop.

I agree with posters on here having their say, some quite rightfully, but I do think it has been exhausted now.

Well said, I think these posters are informing us a lot more about themselves than the subject poster of this thread

pda

Super_Ted wrote: »

Acting Legally yes, morally no.
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People farming by buy to let scumbags is reprehensible.
The fact is that this guy thought he could mortgage the income of his future tenants to provide him with a "second income" on the back of their labour. As others have pointed out if the housepricecrash had not happend when it did this person would be gloating about being a property investor / financial genius in a few years time.
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As it is he should be thankfull we have such a thing as bankruptcy in this country and thank his lucky stars karma didnt bite him harder.
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He thought he could get one over on others and he got done himself...good.
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In any great con trick there is a patsie, OP, ....thats you that is.
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ST

What a c0ck you are.....

ad9898_3

PatD wrote: »

Pyramid scheme? How?

Ok, buy house for 100k, HPI of 10% after a year 110k, mew 10%, buy another house, after a year HPI 10%, mew 10% of the last house you bought, buy another house. etc.....

Using HPI and rent as the 'investment vehicle' for your interest only mortgage means you can't lose as long as prices keep going up, hence the building of a pyramid.

The Wilsons for example have used this as their business model by their own acknowledgement <snigger>, of course its like gambling on the roulette wheel, start off with a £1 bet on red, continue to double your stake until red comes in, simple, you can't lose or so you think, however if you think a little deeper it doesn't work as you end up exposing yourself to a huge risk for little return.

neas

Also the pyramid scheme could only work if the people at the bottom kept paying the X% HPI prices.

2002 - FTB pays 60k for a property (House is 3.5x income of FTBer)
X% HPI
2003 - FTB pays 75k for a property
X% HPI
2004 - FTB pays 87k for a property
X% HPI
2005 - FTB pays 100k for a property
X% HPI
2006 - FTB pays 110k for a property
X% HPI
2007 - FTB pays 125k for a property (house is 6-7x income of FTBer)


This is roughly the way FTB 2-3 bed houses have grown in my area over the last 5 years!.

Altho below average for House prices nationally, average income is lower here... but it illustrates how the inflation has reached 'maximum/peak' point because its just not affordable for anyone to buy anymore as a FTBer. Only people who were buying were the stupid or the greedy... who joined BTL.. late. This was the final 'push' on the pyramid scheme.

For any pyramid scheme to work they need continually a bottom rung of the ladder to buy the smaller houses... so people can upgrade to bigger houses. If the smaller houses dont sell.. and fall in value.... they reduce their value.. and seek reductions higher up the chain.... and the pyramid collapses... because all players in the game know... that proprty is no longer rising fast... but falling faster than it rose! so it accelerates because no one enters the bottom rung... BTlers or FTBers.

The only ones completing on houses are the insane and the ones who bought as you did off-plan. But While i understand your frustration I cant be too sorry for you. I could've done exactly the same as you did... but I used my head and didnt. I as a FTBer could afford a house now.... I could pay 25% deposit or so.... and have a nice bit of equity... but why be stupid with the most expensive purchase in my life? I'll play it cool.. and let wealth be redistributed from the greedy (the wilsons), the greedy who made nothing (like you... because frankly you will lose 15k and gain nothing), the unfortunate (those who believed the hype as FTbers and joined the scheme late).

I will shed a tear for the unfortunate... I know 2 of them at work.. and they are already in negative equity... by their own admittal. One of them a young 21 year old... at uni bought 2 years ago on a fixed rate 2 year interest only mortgage... instead of renting at uni. His hope was to sell at the end and pocket 5-10k ... courtesy of the HPI... he was naive and how now lost his deposit by his own admission.. and may lose more as its a 1 bed flat I think.