Get Rich Quick Not

[pred]

If the pound devalues - then the cost of everything rises - and you get hyper inflation. Your repayments would go through the roof. Your rents wouldn't keep up - you still go bust.

What repayments?? The syndicate would not have a mortgage, we BUY the house outright.

This is hard work!!

 

[joe-90]

But if it all goes titt's up (as it probably will) you will be liable for the negative equity. You will have to sell up to pay for it.

 

[joe-90]

If the pound devalues - then the cost of everything rises - and you get hyper inflation. Your repayments would go through the roof. Your rents wouldn't keep up - you still go bust.

What repayments?? The syndicate would not have a mortgage, we BUY the house outright.

This is hard work!!

You said you owe a million quid.

 

[TheVictorian]

If you buy the house outright and have no mortgage then you won't lose anything at all in the short term as you would have no mortgage to service.

Your income could fall if the rental income drops accordingly, but you wouldnt loose a bean until the you sell. Even then the house prices would eventually equalise again, albeit slowly.

The key to the idea I suppose is that you are splitting this risk amoungst many people, therefore even if the house halved in value then it shouldn't really damage anyone's livelyhood.

 

[pred]

Sorry how STUPID of ME, are we talking of my portfolio that i started in 2006, yes that is mortgaged, but only about 70%, i'm talking of something else where a lot of investors put in a few bob so to speak, there are a lot of people out there with loads of dosh stashed away in banks earning zilch, i think this is a fairly safe bet.

 

[joe-90]

What the UK needs is lower house prices, lower wages, higher competitiveness in the global market. House prices must fall in the long term.
If they don't we go bust. Simple as that.

 

[joe-90]

Sorry how STUPID of ME, are we talking of my portfolio that i started in 2006, yes that is mortgaged, but only about 70%, i'm talking of something else where a lot of investors put in a few bob so to speak, there are a lot of people out there with loads of dosh stashed away in banks earning zilch, i think this is a fairly safe bet.

It wouldn't be worth it. Legal fees, buying fees, selling fees - and the odds are that property will collapse if the Euro falls.

 

[pred]

If you buy the house outright and have no mortgage then you won't lose anything at all in the short term as you would have no mortgage to service.

Your income could fall if the rental income drops accordingly, but you wouldnt loose a bean until the you sell. Even then the house prices would eventually equalise again, albeit slowly.

The key to the idea I suppose is that you are splitting this risk amoungst many people, therefore even if the house halved in value then it shouldn't really damage anyone's livelyhood.

But my dilema is that i want to move forward, i would have to sell a property to do that, now is not the time to sell and as i say i'm sure there are similar minded people out there in the same boat.

 

[joe-90]

Sell, buy, renovate, sell.

 

[pred]

Sorry how STUPID of ME, are we talking of my portfolio that i started in 2006, yes that is mortgaged, but only about 70%, i'm talking of something else where a lot of investors put in a few bob so to speak, there are a lot of people out there with loads of dosh stashed away in banks earning zilch, i think this is a fairly safe bet.

It wouldn't be worth it. Legal fees, buying fees, selling fees - and the odds are that property will collapse if the Euro falls.

You are absolutly right Joe, i really dont know why i bother, i shall proceed to Clifton Suspension Bridge and chuck myself over.

 

[chapeau]

If you want to bet your cash on property buy some Barratt Homes shares or another developer. It's liquid so you can convert to ready cash the same day. Try getting your money out of real bricks and mortar right now, you either wait or sell for less than you want. Actually if you wait you will still sell for less than you want, a lot less.

 

[joinerjohn]

You are absolutly right Joe, i really dont know why i bother, i shall proceed to Clifton Suspension Bridge and chuck myself over.

Don't do it Pred... Just think of the cost of cleaning all that blood off the rocks, or (if you fall in the water) the cost of sending a couple of police divers out on body search and recovery duties.

 

[pred]

What the UK needs is lower house prices, lower wages, higher competitiveness in the global market. House prices must fall in the long term.
If they don't we go bust. Simple as that.

Joe, it looks like you're right again, we should all be living in council houses, but we cant because they have been sold off. House prices have never fallen in the long term, before the last rescession the house i live in now was worth £60k, it has recently been valued a tad over £300k

 

[TheVictorian]

Pred, I am the same. I've got a very small portfolio but don't want to sell to move it forwards so am holding back.

 

[pred]

So it looks like Joe is out , seriously if you are interested for the sake of anonimity it would be better to "PM" me, if there is enough interest then we shall take it from there.