The mystery of the disappearing BMV vultures

FungusFighter

Generali wrote: »

I think the reason is that the banks have tightened up the rules on refinancing. The real trick with BMV was to buy at such a price that you could then refinance on the day of completion (or the day after) so you actually had no money of your own in the deal. Thus a small amount of money could finance a huge number of properties, in theory at least.

The banks want bigger deposits so sellers won't accept the BMV prices and I heard that they aren't as happy as they were to refinance in the way that they were.

ALso the public has got a bit more savvy, all those recession/reposession/credit crunch Panoramas/Dispatches/ The one Show etc:D

mewbie_2

FungusFighter wrote: »

ALso the public has got a bit more savvy, all those recession/reposession/credit crunch Panoramas/Dispatches/ The one Show etc:D

By accident I guess, think of monkeys eventually typing a Shakespeare sonnet, you have one of the most important points. I think more important than all the boring money facts and figures. People pumped this madness up and up in the belief that prices would keep rising. And now the opposite is true, the mindset has altered. People now think the opposite.

It's all vry well saying they'll recover one day, well most people I think, do not work like that. If they are dropping, and forecast to drop more, well just leave it for now. Self perpetuating.

FungusFighter

mewbie wrote: »

It's all vry well saying they'll recover one day, well most people I think, do not work like that. If they are dropping, and forecast to drop more, well just leave it for now. Self perpetuating.

Babe, people are sheep, there's no thinkin in it :rolleyes:

They just do what next door are doing or what some bloke down the pub says or what some fat bird on the telly tells em to do:rotfl::rotfl:

SouthCoast

FungusFighter wrote: »

The dude's a 24 carrot grade A !!!!!!:D

My experience, the more they big up the market the closer they are to an appearnace in the bankrupcy courts:T

(Kenny, you about mate?:rotfl:)

I thought that he was called Grant!

trumpton

"They buy at BMV, and by the time they sell it isn't BMV anymore".

Okay time to confess. We are buying a house which has been on the market over 18 months. It started at £300k. They guy couldn't sell it. He sold it to a BMV company for £235k. They had it on the market for £300k, then £275k, I think. Reduced to £245k, which is what we are paying. The house has been cleaned, garden maintained, insured etc. The company has a mortgage on it. I reckon after costs they haven't made anything on the house.

Some of these companies must be seriously struggling now, with large portfolios of property bought pre-price falls, all to insure and maintain.


Currently watching Homes Under the Hammer from the other day. Filmed in October 2008, a teacher bought a new build flat on Admiral Street Beeston, Leeds, for £65k. 3 years old but never been lived in -what does that tell you? Top floor flat and lift doesn't work.

She plans to rent it for £550 a month, a yield of 10%. On Rightmove at the moment the same flats are on at £69,955. Okay the rent will cover the mortgage, but I don't see any prospect of capital growth on that for a while. In fact it could fall further in value as Leeds is swamped with unoccupied flats.

Also on is a New Zealand guy who has made a right pig's ear of doing up a house - really sloppy. One EA valued it at £1k more than he paid at auction. He has managed to rent it but admits that some of his other houses are now worth less than he paid.

mewbie_2

They've not all disappeared. Heard about one claiming to have two grand pianos, one for keeping his !!!!!! hidden in case his mum catches him. Spends all his time playing computer games apparently.

Generali

mewbie wrote: »

They've not all disappeared. Heard about one claiming to have two grand pianos, one for keeping his !!!!!! hidden in case his mum catches him. Spends all his time playing computer games apparently.

Paper !!!!!!? Very 1970s.

mewbie_2

Generali wrote: »

Paper !!!!!!? Very 1970s.

I figured - retro games, retro !!!!!!.

Conrad

A number of East London brokers were notorious for this in 07 and into 08, and tried to get me involved. They just didn't register even a flicker of engegment with the notion prices were falling.

One of them actualy said to me and I kid you not - "but prices always going up init".
That was the sum of his due dilligence.

Kenny4315

mewbie wrote: »

They've not all disappeared. Heard about one claiming to have two grand pianos, one for keeping his !!!!!! hidden in case his mum catches him. Spends all his time playing computer games apparently.

No I have a Weber Boudoir Grand in black, only one two is not required, I have a yamaha keyboard P60, which I also use, which I have located on my 3rd floor games room.

No what I said is one of my hobbies is video games, i also cycle (road and off road), do weightlifting (mainly powerlifting), deadlift, squat, bench, play racquet sports (tennis, squash, badminton), and do general stuff like running/ xtraining and swimming, etc. I also play the piano, been working on chord inversions today, as going to start playing some Jazz, and this requires an instant grasp of complex inversions.

Fungus F knows all about this type of thing as he spends most of his adolscent life reading Jazz mags.