Wilsons Selling Up. The Lot. All 700 Houses.

shakerbaby

South_Of_Heaven wrote: »

Hi Guys, I'm new here, I'm bearish, a bit of a peak oiler..... blah blah, I'm sure you all know the drill by now.

Welcome. It's nice to see a new face. :rotfl:

Snooze

So how do the Wilson's compare to Tesco's again? Anyone? Cleaver?

R

Cleaver

Snooze wrote: »

So how do the Wilson's compare to Tesco's again? Anyone? Cleaver?

R

In all the ways I've pointed out in my posts today.

Snooze

Cleaver wrote: »

In all the ways I've pointed out in my posts today.

Indeed. Today you have brought a whole new meaning to the saying 'like a dog with a bone'.

R

Cleaver

Me not like buy to let. Buy to let not good. Evil people are buy to let. Grrr. Hate. Buy to let evil. Not good. Hate. Me not like. Not good. Hate. Hate. Debt is bad.

Other business good. No debt. No buy to let. No buy to let is good. Happy me make. Cheap stuff. Different as not buy to let. Me likey stuff not buy to let. Me not see any same stuff. No same stuff. Other business good. Buy to let bad.

Bad buy to let. Me no likey buy to let. Evil. Landlord. Evil. Me like other things that are not buy to let. No propety. No property rental. Me no rental property. Cheap things yes. Buy to let no. 700. 700 houses. Grrr. No houses. No rental houses. Cheap laptopy me likey. Debt mountain. Houses. No equity. They go bust me happy. Me happy man.

Wilson. Grrr. Wilson. Arghh. Real hate. Real hate. Me real hate. Wilson. No. Tesco. Yes. Wilson. No. Tesco. Yes. Cheapy Laptop. Cheapy Laptop. No bad Tesco. No bad Tesco. Gooood Tesco. Oooooh debt mountain. Grrr. Calamitous rental. Unsustainable rental. Me no like. Me really no like.

Valued at market. £100 million. No no no. No no no. 700 properties me no like. Me really no like. Cheap stuff yes. Yessy yes yes. More yes. Property rental no. No no no. Fergus. Ooooh Fergus. Me no Fergus. No like Fergus. Bad trousers Fergus. They make no money. Ahhh no money. Please they make no money. Hope they make no money. Bankrupt yes. Ooooh yes. No money yes. Hate hate hate. No money. Please no money make. Daily Mail article. £100 million. No no no. No money make.

Buy to let. Ummmmmm. Buy to let. Noooo. No No No. No buy to let. Sales no cover debt. Me hope they have debt. Debt no cover sale. Sale hope they not get. Dont get sale. Dont get sale. Debt. Debt Debt.

Cheap laptop. Cheap laptop. Yes. Yes. Yes. Buy to Let. No. Yes. Laptop. Buy to let no good. No good buy to let. Cheap stuff yes yes yes. Fergus no. Maths teach no. Figures no add up. Ash. Ashford. Ashford no. £100 million no.

Buy to let. Grrrr. Real grrr.

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mewbie_2

Very funny, as always. But if you have no interest in the thread why bother with it. Other people have a real hatred of the Wilsons and this is the ideal thread to let it out.

BettiePage

Maybe Tesco's could buy their portfolio and rename the town 'Tesco Town'?

Mr_Matey

Cleaver wrote: »

Buy to let. Grrrr. Real grrr.

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This is your best post on the topic. :rotfl:

baileysbattlebus

Graham_Devon wrote: »

Their bigest problem is they basically can only count the equity as their "profit". So if the house is worth £150k, but they owe 90k, their potential gain is 60k.

Other problems they face are:
- They cannot just sell the properties while they have tennants in them.

- They need tennants in every house to cover their costs of the mortgages. If I remember correctly, the wilsons would only "fix" mortgages, and had some "good deal" with the lenders who gave them long term fixed rates, so I doubt they have benefitted from interest rates. I could be wrong, but I'm sure this was part of his plan to know how much is going out each month, and he had buying power so got long term deals.

- They can't just release every house onto the market, values in Ashford would simply plummet. Suddenly, 700 properties hit the market, all of the same type, all of the same decoration.

- They can't hold on too long before selling, otherwise they could lose pretty much all their equity and end up having to go bankrupt.

- Each property is going to take a HIPs pack....theres £700,000 straight away. Plus selling fees, say around 3k per property, theres another £2.1m. Theres £2.8 million in fee's for just selling them. I bet they have early repayment charges on many of them too.

- They can't just sell them all without employing someone to manage this sort of project. It will be a huge job keeping track of all properties.

All they can really do is hope to sell to a property company. However, a property company would want a seriously good deal to take on this type of thing.

I reckon personally they will end up selling this lot for a quid or something, bit like woolworths and how the DSG group has just sold for a quid.....if the market starts to decline again that is.

Anyone remember the landlord who recently sold a bunch of flats in London? Sold it for £1, but the buyers had to take on £700m of debt. I think it sold in the end, but that landlord did a lot of work for a quid!!!

Alternatively, they could keep it and carry on. But time is not on their side, and as he always said, this was their retirement fund and money for the family.

Lots of investors buy with AST tenants in place - if you buy as an investment - the tenant can be given notice if you want to live in the property - you might have to wait a few months.

700 properties aren't in Ashford - about 200 or so in Ashford and others in surrounding towns.

If they sell the lot as a business say to a foreign investor/pension fund etc - do you need a HIPs then? I'm sure if you did you could negiotiate a pretty big discount or even just employ a person or several who carry out hips - £700,000 seems a lot for hips - £1000k each? £70k or £140k maybe.

They have a firm of solicitors who act for them in their property dealings - Gullands - who I'm sure won't charge them £3k a house - volume gets discounts. If I was using the same solicitor to sell 7 houses for me I would expect a discount - wouldn't you? Never mind 700.

This is from their website - just shows you how money goes to money - the Grand National and she probably collected about £20 - 25k for placing 5th.

http://www.gullands.com/news/view/192/JUDITH'S-HORSE-NETS-£100K-WITH-A-FRACTURED-SKULL

They may be able to sell it a pension fund / property company- as you know pension funds look for long term returns - and in general property is fairly good long term bet - especially over 30 or 40 years. Pension companies in Germany are big residential property investors they buy whole apt blocks - you never know after the financial termoil of the 18 months it could become the same here. They might have good returns on the rentals - who knows.

They may indeed have to sell them all for £1 - again who knows. But bear in mind the new high speed rail link to London has just started operating and they say property prices are starting to go up in the Ashford area on the back of this. There could even be an influx of people from London who are happy to buy a cheap house (compared to London) and have a 37 minute commute to St. Pancras.

I'm not defending either them or their business methods - just pointing out they may not be quite as stupid as people think they are.

But I wouldn't imagine they are short of a bob or two of their own.

Graham_Devon

baileysbattlebus wrote: »

They may indeed have to sell them all for £1 - again who knows. But bear in mind the new high speed rail link to London has just started operating and they say property prices are starting to go up in the Ashford area on the back of this. There could even be an influx of people from London who are happy to buy a cheap house (compared to London) and have a 37 minute commute to St. Pancras.

I'm not defending either them or their business methods - just pointing out they may not be quite as stupid as people think they are.

But I wouldn't imagine they are short of a bob or two of their own.

What happens then to the people who live in these places now, who send their kids to the local schools etc?

I'd say you are defending them as much as I was defending tescos.

By the way, too many "who knows" in your post for me Sounds a bit like the "well it could be worse" argument.