Debate House Prices


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Ajay Ahuja at it again - Crash denial

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  • kabayiri
    kabayiri Posts: 22,740 Forumite
    Part of the Furniture 10,000 Posts
    ajayahuja wrote: »
    I think you have got it wrong here.

    Equity is value of property (£117k) less debt (£90k) = £27k.

    so your initial £10k has turned in to £27k. thats a 170% return to me!

    numbers are my game as I am a chartered accountant. ex-Deloittes. You?

    ajay
    Oh dear, oh dear.

    This is classic double counting chicanery.

    10K of money goes into purchasing the property.
    If sold 17K would come back to you.

    I'll leave you to do the 10:17 ratio.

    I'm glad this isn't rocket science, because if it were, your rocket would be safely nestled in the bottom of the Atlantic by now.
  • ajayahuja
    ajayahuja Posts: 11 Forumite
    10:17

    thats a 170% return. hello?

    if you invest 10,000 and make 17,000 that is a 170% return.

    thats two here that do not know their returns. I suppose this site is about saving money hence calculating returns is not the norm hence not second nature.

    this discussion would not be had on my forum https://www.ahujaforum.co.uk as the return calculation is a very common one. if you were to ask us what was the percentage saving on a pizza express 2 for 1 voucher with a free drink as long as one adult dines between the hours of 5.30pm and 8pm (excluding weekends) then we might struggle!

    Look. i do not mean to be rude, but i think money makers and money savers are two different species and the only thing that connects us is our obsession with money.

    i only came across this site from google and joined up to it because my name was being slurred.

    i wish all those who enjoy this site the best and i hope you do save money as i am sure you work hard to earn it.:rotfl:

    For those who understand the basics of calculating returns and want to see their money multiply by taking on some calculated risks then you are welcome to my site!

    visit: https://www.ahuja.co.uk
  • ajayahuja
    ajayahuja Posts: 11 Forumite
    with regards to the properties i am buying and the recent price falls in national house prices.

    national house prices are just that - national.

    i have not bought in England for 2 years. i buy most in scotland. have you seen house price stats for scotland?

    http://news.scotsman.com/scotland/Scottish-house--prices-still.5081412.jp

    thats national for scotland. i do not buy in the well known areas. i buy where the properties are £30k and they are like gold dust! if you can find me properties at these prices which are available then i will pay you top money for these.

    go on rightmove and see what you can find. you will find nothing as properties under £30k sell in hours, literally hours. these properties aint dropping by 15% to 20% per year.

    if you want to find out about property do not get your info from tabloids, broadsheets etc. they are too general.

    if you want to find deals for us and you can find below market value properties then visit: http://www.ahuja.co.uk/affilliation/property-sourcers/
  • brit1234
    brit1234 Posts: 5,385 Forumite
    ajayahuja wrote: »
    10:17

    For those who understand the basics of calculating returns and want to see their money multiply by taking on some calculated risks then you are welcome to my site!

    visit: www.ahuja.co.uk

    Yes all you have to do is flaunt health and safety rules like with dodgy gas boilers. Read below:
    ADDED 09/04/09

    Judge says buy to let landlords need to protect the public
    A landlord with 193 properties across the UK has been put on notice not to repeat the failings that led the Health and Safety Executive (HSE) to prosecute him for not complying with an Improvement Notice served on him to provide one of his tenants with a gas safety certificate.

    On 26 March, Mr Ajay Ahuja, from March in Cambridgeshire, pleaded guilty at Northampton Crown Court to contravening Section 33(1) of the Health and Safety at Work Act 1974 for failing to comply with an Improvement Notice served by HSE.

    He was given a two-year conditional discharge and ordered to pay costs of £14,000.

    The Improvement Notice was served following repeated attempts by HSE to get Mr Ahuja to provide his tenant with a gas safety certificate for the gas boiler in the property he rented from Mr Ahuja in Corby, Northamptonshire.

    All landlords have a duty under the Gas Safety (Installations and Use) Regulations 1998 to annually check the safety of the gas appliances in properties they rent out to others and provide a certificate confirming this to be the case.
    At the hearing, His Honour Judge Corrie stressed that the authorities are right to be vigilant concerning such infringements - not only in terms of the individual, but also to maintain public confidence.

    He said: “For landlords large and small, there is a need to protect the public, particularly those who rent properties, to guard against gas explosions, which are potentially fatal. Not only this, but also asphyxiation.”

    In passing a two year conditional sentence on Ahuja he stated that the spotlight was upon him in ensuring that he did not again infringe these requirements.

    After the hearing Neil Craig, Principal Inspector with HSE said: “Every year about 20-30 people die from carbon monoxide poisoning associated with domestic gas appliances, due mainly to these appliances not having been properly installed or maintained.

    “We need landlords to ensure their gas appliances are maintained to a safe standard and checked annually, with copies of the gas safety certificate being provided to their tenants.

    “Should Mr Ahuja come to our attention again in respect of such matters, we will investigate to establish whether or not he is complying with his duties and if found in breach, return him to the courts.”

    http://www.residentiallandlord.co.uk/news1797.html


    :eek:

    Sorry but this is shocking. It shows there are the landlords who follow the law and those who don't.

    His website clearly promotes mortgage fraud and now he has a proven record of health and safety abuses.

    Mr Aluga could you come back to say your side of the story, maybe there is something in the article that you disagree with.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • neas
    neas Posts: 3,801 Forumite
    I thought my landlord was bad.... At least mine knows about gas safety certificate... and hell even replaced the oven because the gas engineer said so. Am thankful have my landlord (although is looking a bit flacky on the financial side of him gulp!).
  • GonzoAston
    GonzoAston Posts: 1,390 Forumite
    Ive noticed he or his other usernames havent come back to reply to that, lol :D
    I know my spelling is shocking :eek: It is alot better than it used to be though :rotfl:
  • mp2
    mp2 Posts: 80 Forumite
    edited 17 April 2009 at 10:50AM
    ajayahuja wrote: »
    You lot are a vicious lot!

    Thanks for the few that have supported me.

    Now to the facts. I never pay more than £80k for a property. in fact 90% of the properties I buy for myself are under £50k and most bought at £40k ish.

    I am currently buying properties at the £14k to £25k mark. I have a commercial lender and I bridge and remortgage as it is simpler than the other no money down technique i described earlier. My clients use this as they do not have commercial finance as they only deal with large clients (borrowing in excess of £1m).

    So those who talk about bubbles and over priced assets should be really aiming this at those who bought at 6% yields and less.

    I currently have 200 properties that bring in £65k a month in rent and my mortgage costs are £25k per month. Thats a £40k gross profit per month. knock off another £10k for repairs, insurance credit control and voids.

    My portfolio may have gone down in value but I do not care! i ain't selling. i am buying! Target 1,000 properties by end of this year.

    As long as there is a recession, there is low interest rates which means high profits for any buy to let landlord.

    when inflation kicks in, we'll have interest rate rises coupled with rent rises and property price rises.

    one day guys you will realise that property is the only investment that makes you rich coz you get to borrow so heavily to make the investment.

    cant do that with stocks etc.

    Sometimes you have to face it. highly leveraged investors win either way:

    1. in recession you have nice cashflows and no capital growth
    2. in a boom you have no income but high capital growth

    If you want to find out more visit: www.ahuja.co.uk and join my newsletter. if anything you'll be entertained!

    Ajay

    yeh right... your monthly mortgage costs are 25k per month on 200 properties.

    so the average mortgage payment on your btl mortgages for all 200 properties, bought since 2000 is £125 a month...

    i think you need to check with your accountant.

    also you should care that your properties are falling in value. why? because of leverage. (which incidently brought down all the worlds banks didnt you know)

    if you are borrowing money on houses on top of each other using equity, the leverage for your falls is far far higher on the way down.

    you may get 20 to 1 leverage on the way up using a 5% deposit, but on the way down, because you leveraged on gained equity, your losses are more than 20 to 1 for every % fall in house prices.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    mp2 wrote: »

    also you should care that your properties are falling in value. why? because of leverage. (which incidently brought down all the worlds banks didnt you know)

    Does leverage come into it though if NMD(No money down)/Mortgage Fraud:rotfl:

    First the FSA prosecutes, is it the FSA next to prosecute?

    I seriously can't see by paying a surveyor to overvalue a property and then buy it at a cheaper rate and not declaring it to the mortgage company it can be anything other than mortgage fraud.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • geoffky
    geoffky Posts: 6,835 Forumite
    He is not daft ,,,he is just praying he can get out from not going bust or to prison.....but he is looking for a out...
    It is nice to see the value of your house going up'' Why ?
    Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
    If you are planning to upsize the new house will cost more.
    If you are planning to downsize your new house will cost more than it should
    If you are trying to buy your first house its almost impossible.
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