Buy to let Fraud (British subprime) - More collapse

Cleaver

brit1234 wrote: »

Investors in Leeds were buying £250,000 flats off Morris. Thats well over 10 times local wages. Now who is to blame, Morris for selling at this price or the investors who bought at this price?

The investors who bought at that price. I can start a business selling whatever product I like at any price I like. It's up to Joe Public whether they want to buy it or not.

hearts

QUOTE:"Investors in Leeds were buying £250,000 flats off Morris. Thats well over 10 times local wages. Now who is to blame, Morris for selling at this price or the investors who bought at this price?"

ERM........What about the bloody banks who lent their money to buy these properties?????? Of all involved THEY are most at fault.
A Fraudster, A Fool and A "Professional" someone had to lend the fool the money. Someone had to say "Yes it is worth 100k, lend him the money"

My son is looking for a car at the moment. I am lending him the money. I know nothing about cars. When viewing I get a m8 who is a mechanic to come along for his expertise. Before I lend him the money I want to know what he is buying is worth the money. COMMON SENSE!

Cleaver

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??)

Strangely enough I had a chat with my downstairs neighbour just this morning who has had his flat up for sale for a few months (it's exactly the same as ours, same shaped rooms, is in a pretty similar condition to ours when we bought it - the only difference is that it's on the ground floor).

Anyway, I haven't seen him for a while and turns out he's moving out today and tomorrow and the new guys move in on Saturday. And they paid... exactly the same price, to the penny, that we paid for our identical flat in February 2007. Which really surprised me. His flat was on the market for £5k more than ours was, so they have got a 'bigger discount' I guess, but asking prices mean squat really.

This story proves nothing of course, but it did surprise me.

Alan_M_2

Cleaver wrote: »

But how would...

Oh, I can't be bothered to argue. I give in. I agree. Ban all BTL. Ban them all. Councils should buy a sleazometer and hook all potential business owners up to it and anyone that failed should be banned from owning a business. Government officials should be employed to outlaw all businesses run by people who aren't particulary nice.

Here's an idea. All potential business owners should go through a test whereby they are placed in an empty room apart from a box of kittens and a hammer. They will be observed by a bunch of government officials with clipboards behind one-way glass to see if they beat the kittens to death with the hammer until they are pulp, or just cuddle them. They'd have to pass this test to be given their business license.

Cuddle them? That's not enough, they'd have to to at least employ two of the kittens....

RomansProperties

chucky wrote: »

you would have to be lacking your senses if you invest in the kind of property i saw in one the previous posts. what potential does something like that have!?

They were trying to say that by making a 2 bed house into 4 lettings rooms @ £65PW per room.
Total Yearly Income £13520
Therefore at 7.5% return it was worth £180,000.
£180k was the price they sold it to the investor.
The best offer it has got so far is £50k which is exactly what it was purchased for by Morris Developments

Now a 3 bed house to rent in Armley (Leeds) would go for £500PCM, which at £50K is a 12% return and should now attract investors.
But it hasn't.

Rock_Hard

brit1234 wrote: »

MORRIS PROPERTIES






Greedy buy to let investors who bought homes from MORRIS PROPERTIES are going bankrupt after buying well overvalued properties. Now Simon Morris the director has been arrested for fraud.

Simon Morris: Leeds property tycoon’s jail term appeal

Shamed property tycoon Simon Morris has been denied bail as attempts to appeal against his 18-month prison sentence

http://www.yorkshireeveningpost.co.uk/news/latest-news/central-leeds/simon_morris_leeds_property_tycoon_s_jail_term_appeal_1_3905650

chucknorris

Rock_Hard wrote: »

Simon Morris: Leeds property tycoon’s jail term appeal

Shamed property tycoon Simon Morris has been denied bail as attempts to appeal against his 18-month prison sentence

http://www.yorkshireeveningpost.co.uk/news/latest-news/central-leeds/simon_morris_leeds_property_tycoon_s_jail_term_appeal_1_3905650

Serves him right, but the important lesson here is DYOR before getting involved in anything. I saw a tv prog the other day about investors being ripped off by investing in wine, again the victims believed all the hype without doing enough research.

brit1234

Dodgy, dodgy guy.

Sounds a bit cheap though employing a 51 year old as a body guard.:rotfl: