Guys im 26 and need serious help!

bryanb

Seems to me that the best advice I've seen scanning this thread is "live in it"

Griptool

k0108356 wrote: »

........
I don't want no sympathy and Im just an average professional earning a good living and contributing to a great country. I just want my life back again and this certainly is not a wind up. i REALLY REALLY wish it was.

You have contributed to the biggest ever speculative bubble by investing someone else's money with the hope of an easy life living off the backs of others.

The BTL rentier economy

"The beneficiaries of this income are a property-owning class who play no productive role in the economy themselves but who monopolise the access to physical assets and financial assets . They make money not from producing anything new themselves, but purely from their ownership of property (which provides a claim to a revenue stream) and dealing in that property"

As with all assets prices go up - prices go down, through greed and naivety you bought into the dream when anyone with any sense was bailing out.

My advice would be to sell NOW if you don't want to lose even more money. Oh and be ashamed of yourself.:T

Griptool

Seems I’ve upset you Benjy.

I would contend that speculation on the property market fuelled by cheap credit (in which the OP is a participant) has caused a great deal of damage to our economy – (the benefits of this unproductive credit expansion is now plain for all to see) The cause of this has been greed and the idea of money for nothing, everyone’s desire to live the rentier lifestyle.

If you think that’s an idiotic point of view I’d be interested to here your counter argument on the benefits of our economic growth over the last seven years

14% Per annum growth of money supply*
10% Per annum growth of personal debt *
3% Per annum growth of GDP*

Even a chap of your erudite wit can understand consequences of exponential growth.
*average figures given for simplicity Benjy

[FONT=&quot]Please point oot the spilling misteakes on my first poost
[/FONT]

jamesd

Griptool, this discussion is about someone who bought a newly built flat. That was not an unproductive part of the economy: it paid for the building of a new flat, adding that to the housing stock and freeing the capital of the builder so they could purchase the labour, materials land and services to build more.

In a free market economy the higher prices increase the incentive for builders and their investors to construct more new properties. We've seen that effect in the many cities where there is now an over-supply of newly built flats. That over-supply will in turn decrease the prices and incentive to build more new flats in those areas. Houses are a tougher problem becuase they require more land per property and land is not so readily available.

Rick62

Yes, the only reason that property attracts the moral contention that it does is becuase building land is artificially restricted by central planning. If building land were not restricted and thus properties were not restricted then no one would mind BTL landlords, in fact they would be seen as positive.

But since it is it would make sense if landlords were also controlled to avoid unprofessional ones blighting their tenants lives.

fc123

k0108356 wrote: »

Thanks JamesD, clear advice. I know i've been a mug and got lead like a dog on a leash and I really do appreciate the advice that all members have given.

Firstly, the best option for me I personally think is to first of all get a real valuation done. Im going to book this in for 23rd Feb and based on advice here I will get 3 diff estate agents to look at it within one hour (so not to disrupt my tenants too much!!). I currently owe £212 000 to Halifax and if I take a £30 000 hit then well, I deserve it. The £30, 000 I would raise by taking an unsecured loan and maybe friends/family etc.


I don't want no sympathy and Im just an average professional earning a good living and contributing to a great country. I just want my life back again and this certainly is not a wind up. i REALLY REALLY wish it was.

Hi Mr Many Numbers.....I read your post and I have mountains of sympathy with your situation.
Yes, be *humble* and accept the error BUT you were led into this by a fraud perpetuated by assorted, so-called, professionals, which was compounded with endless Telly; flipping house shows and the like, Sunday supplement articles about never ending house price rises etc.

I am no longer 26 (just 44:D ) and, whilst we weren't
"conned "into a newbuild BTL (and hubby was moaning for yrs that we were "missing" the bandwagon"...as we have a load of "equity"; not cash under the mattress as some seem to think, and we could have got caught too), we still have been "caught out" by the credit binge of the past few years.

Some say; it's you're fault, you shouldn't have been; stupid / greedy / progligate/trusting of the banks / ambitious / misled by false dreams; delete as appropriate.


Have you been onto the house buying board?

You could post a new thread with the link to this one as there are some good people over there who may have ideas to take further Conrads suggestion of false valuation etc. Plus EA's who can give you some ideas as to the state of themkt etc

You will get the odd "ha de ha" post but you can block them if they bug you...just ignore.


I think it's rubbish and a hard way to start married life...but it's not insurmountable......good luck and don't beat yourself up about it........it's not a fool who makes a mistake, a fool makes the same mistake twice.


Good luck:D

Gorgeous_George

I think now is the time for damage limitation.

Options.
1) Live in it
2) Continue subsidising the rent
3) Sell it

1) Only you know if this is a viable option. The benefit would be that you could choose a cheaper residential mortgage. The downside is that the flat may be inapprpriate for your immediate and mid-term needs.

2) How much is the difference between rent and IO mortgage? Main problem here is that you are likely to be stuck with your current lender. This will probably mean thta you pay top dollar for the mortgage. On the bright side, over the years the rent should increase and eventually it may cove your IO mortgage.

3) This removes all the risk but saddles you with a debt. Over the next few years, this may seem like a good choice (if values fall as many predict). You can eventually pay off all the debt and will make loads of friends on the DFW board.

Bankruptcy may also be an option but take professional advice whatever you decide to do and, most of all, good luck!

GG

owitemisermusa

Why not live in it? Everything else seems complicated and some rather final.
I'm sure you have your reasons.....

k0108356

Hi All


I don't know how many of the original poster's are around from the thread I originally started 3 years ago but i've certainly come a heck of a long way since then! So this is what happened from the original thread:

*Got married to my beautiful wife

*Sued valuer and got a 30k payout
*Consent to Lease via Halifax
*On the verge of obtaining a residential mortgage on a property we've just seen. Offers have been accepted, conveyancing and formal mortgage offer under review

Just shows what time and perseverance can achieve! Been a long way and no doubt face further difficulties however such is life.

Kind Regards All

casualwalks

Good for you! Glad it worked out.