Debate House Prices
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Who wants to be a property millionaire?

mystic_trev
Posts: 5,430 Forumite


It was as easy as pie. Re-mortgage the house, stick the resulting equity into a flat, rent it out to pay the new mortgage, and hey presto, there at the end of it was your pension. Anyone could do it. Lots of people had made millions out of it. Books were written, courses were held. Only it relied on house prices always going up.
At the peak of the housing market, many discovered that prices were so high that the rent wouldn't cover the mortgage, but still they did it, supplementing debt-servicing payments from income. Capital appreciation would solve the problem. Now prices are falling, and for the johnnie-come-latelies, there's no prospect of a pension. Instead, there's only a millstone round the neck.
Nobody is going to feel very sorry for this new breed of British landlord, or for Bradford & Bingley in feeding their stupidity. There is no such thing as a free lunch, or pension. The buy-to-let market is proving the old truism all over again.
http://www.independent.co.uk/news/business/comment/jeremy-warner/jeremy-warners-outlook-who-wants-to-be-a-property-millionaire-838991.html
Sums up what I've been saying for the past couple of years. All those people who couldn't see they'd been investing in the biggest Housing bubble since records begun, which is now going 'pop' There's going to be a lot of pain for BTL'ers who thought Property was a one way bet. Not only will many lose their 'Investment' but also their homes, used as security against the mortgages.
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I'm surprised the Eco-warriors at the Indie even have time to drag themselves away from the coal-face of [STRIKE]global warming[/STRIKE]climate change.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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