Buy to let Fraud (British subprime) - More collapse

IveSeenTheLight

churchrat wrote: »

where are they??? I would like to sell cos we want to move when ds2 leaves school---would be great to think we are in one of your "2007" price places
thankyou
(these places do exist?? dont they??)

Here is a link to the Scottish LR
http://www.ros.gov.uk/productsandservices/lpd_stats.html

In it there are monthly releases (latest is November 08 but December 08 due any day now)

Here is Jan 07
http://www.ros.gov.uk/pdfs/la_jan07.pdf

Here is Nov 08
http://www.ros.gov.uk/pdfs/la_nov08.pdf

You will see numerous areas that are not below the Jan 07 prices
Even the whole of Scotland on average is still higher than Jan 07 as per the released data in Nov 08

I hope you accept this as fact and may be hapening elsewhere locally throughout the UK.

Do not get blinded by UK average statistics.
Look closely at your own specific vested interest area

mizzbiz

IveSeenTheLight wrote: »

Yawn

Yet again a splurg of cliche, stereotyping and UK average splurting which is not the case for all.


I bought a BTL in 2007, have never considered capital growth as part of my calculation, in fact, I still make a nice healthy profit if the property does not gain in capital appreciation (which I do believe will happen in the long term)


When I bought in 2007, it was a requirement then for rent of 125% of the mortgage costs


Your reference to UK averages means absolutely nothing when looking at specific properties.
I could show proof that some areas are still at 2007 levels

But if there's a general trend downwards on house prices accross the UK (average) and this becomes reflected in market rental values, then those places you quote will also fall naturally. Even if vendors were able to maintain the prices of 2007 in the short term, if people can go to the next town and get a property for much much less (half price maybe....), tthen that will naturally exert downward pressure on the area you quote.

Only if house prices start to rise again (which is an abhorrant notion) will 2007 prices be maintained in certain areas.

RomansProperties

People did not even compare prices for properties in the same area.
They were just blinded by what returns they could get for not doing anything.
I cant say they are 100% to blame as valuers should have never valued these properties at those levels.

Robert_Sterling_3

amcluesent wrote: »

> Simon Morris the director has been arrested for fraud<

He's obviously a well dodgy geezer. Eyes are so close together! Caveat emptor(*)

(*) For those who went to comprehensive schools, that means "buyer beware".

To avoid a charge of libel and contempt of court you might like to edit out the above message.

chucky

mizzbiz wrote: »

I just think that if the prices on offer didn't seem reasonable or even logical to me, then everyone who bought in had the chance to assess the "deals" on merit. £250k for an ugly, badly built box-room is not my idea of a bargain. And in the real world, people should have realised that if young professionals have a grand a month upwards in their back pockets for living costs, then they could afford their own mortgage anyway, or at least a nice, three bedroom house in the country with change to spare.

Most of these new builds were built in former slums as part of inner city regeneration packages. Who in their right mind, with enough to pay the rent there, would actually rent one. I still CANNOT undertsand what on earth people were thinking when they signed up for this. It's lilke someone telling me that if I buy a Skoda with Mercedes badges stuck on it that someone will pay me Mercedes prices to buy it off me.

a very good post mizzbiz
i feel that you've changed :beer:

hoggums

In terms of the price paid for the properties there's nothing to answer for there. It's not illegal to ask too much money for something - if someone wants to pay it then thats' their lookout.

However if he deliberately lied to customers about rental yields in order to secure sales that's a different matter.

Obviously we all know that he was telling porkies to get the sale - but proving that in court might be difficult. The prosecution would have to prove that he knew he was telling lies and not caught up and believing the hype like his customers were. Unless there is written documentation to this fact or witnesses who would testify he told them he knew about over-estimating the yields, I don't see what the prosecution has to go on.

Wouldn't suprise me if he got off scott free. Unfortunate for the buyers but they have themselves as much to blame for not doing their homework.

mizzbiz

I haven't really changed Chucky, I was saying the same thing on this board last year.
Before http://sine.ncl.ac.uk/view_image.asp?digital_doc_id=3365
After http://www.echo24.co.uk/

Price difference - aound £230k

IveSeenTheLight

mizzbiz wrote: »

But if there's a general trend downwards on house prices accross the UK (average) and this becomes reflected in market rental values, then those places you quote will also fall naturally. Even if vendors were able to maintain the prices of 2007 in the short term, if people can go to the next town and get a property for much much less (half price maybe....), tthen that will naturally exert downward pressure on the area you quote.

Only if house prices start to rise again (which is an abhorrant notion) will 2007 prices be maintained in certain areas.

I'm not denying that house prices may fall below 2007 levels, however I am disagreeing with the statement that properties are already at 2004 levels.

This is simple just not true for all properties.

There is also the issue of affordability in different areas.
Sure people can commute from the next town / village and I know this happens.
It then becomes a personal decision on the costs and time to commute and whether that option is for them

ampersand

Asheron wrote: »

I love how the BBC white-wash.

################
It's your signature that I'm applauding, a.:T

ampersand

Robert_Sterling wrote: »

To avoid a charge of libel and contempt of court you might like to edit out the above message.

#############
.....and to further avoid inaccurate casting of aspersions, you might like to delete it entirely, op.
Just for the avoidance of doubt, you understand:rolleyes: .