BTL Landmine BOOM

[PAH]

I wonder if there's an establishable price point where property is beyond the realms of the workers and into the realms of the wealthy, who will always be able to afford the property, so those properties will be less likely to fall significantly?

Such as can be seen in parts of London, and probably other wealthy areas in the home counties.

So maybe it's worth paying more for a property in a better area, as it's the better long term investment if buying at the top end of a bubble.

Providing one can comfortably afford the repayments of course.

[Sysman]

I discussed this several times with people going down this route, they would not be talked out of it. They looked at me like I was trying to steal money from them.

Yep. I had an Aussie colleague who came back late from holiday Down Under because he bought a third house under similar peer pressure. He already had two houses and was so utterly convinced by is friends' arguments that he wouldn't listen to any of us.

He did manage to extricate himself after a few years, but at one point he had 2 houses and nowhere to live, because he had tenants in both of them.

[Sysman]

Isnt it called flipping ? Pre 2007 crash millions of flippers in US would "book" a house while it was being built by paying a deposit of 10%. The idea was that by the time the house was completed the price would have zoomed by about 30% and you then sell it without ever having lived in it.

Great idea to make money, sit at home and watch the cash roll in.

Canary Wharf was like that. When I heard about it I reckoned I would be joining it too late in the game to make a decent buck, and my fears proved well founded.

There was another side to that game as well, which happened to some rather nice houses that were being built near me. Having received everyone's deposits, the builders realised that the houses were suddenly worth a lot more, so conveniently went bankrupt. Bang went the deposits and the prices got raised.

[FudgePacker]

There was another side to that game as well, which happened to some rather nice houses that were being built near me. Having received everyone's deposits, the builders realised that the houses were suddenly worth a lot more, so conveniently went bankrupt. Bang went the deposits and the prices got raised.

When the assets of the building companies were sold, at a premium as you suggest, wouldn't these go to the creditors (thus paying back their 10% at the very least)?

[Sysman]

When the assets of the building companies were sold, at a premium as you suggest, wouldn't these go to the creditors (thus paying back their 10% at the very least)?

It depends on the deal the new company struck with the liquidators. Those 10% deposits were probably only a small part of the total debt. I believe that those who had paid were offered some discount is they agreed to go with the new price, but they had still been stuffed.

Did I mention that the directors of the new company were the same folks, or relative of, the bankrupt company's directors?

Bankruptcy in the building game is rife. The builder of my parents' first house went that way after signing everything over to his wife and was still running around in a nice Merc for many years afterwards. Fortunately for my parents, that happened after they had taken possession of the house, although the road never got the promised landscaping, which I assume they had paid for.

[PAH]

Did I mention that the directors of the new company were the same folks, or relative of, the bankrupt company's directors?

Happens a lot. I sometimes think it's a mugs game to pay your dues when you can go bankrupt and start again so easily.

Just need to know how to play the game so you can do a phoenix without losing your assets.

Seems there's no real downside with all the scum getting away with it.

[DimPrawn]

Happens a lot. I sometimes think it's a mugs game to pay your dues when you can go bankrupt and start again so easily.

Just need to know how to play the game so you can do a phoenix without losing your assets.

Seems there's no real downside with all the scum getting away with it.

You mean...Grant Bovey to be declared bankrupt | This is Money


and....Anthea Turner¿s bankrupt husband Grant Bovey back in business | Mail Online

s

[Sysman]

Happens a lot. I sometimes think it's a mugs game to pay your dues when you can go bankrupt and start again so easily.

Just need to know how to play the game so you can do a phoenix without losing your assets.

Seems there's no real downside with all the scum getting away with it.

I used to know a double glazing chap who went bankrupt so many times he got barred from being a director. His son and wife became directors from then on, but he was still running the show on a day to day basis.

Last seen sipping champagne in local pub while the liquidators were in the process of locking out the workers... He disappeared for a while after that one.

And came back with a different name, I kid you not.

[DimPrawn]

I used to know a double glazing chap who went bankrupt so many times he got barred from being a director. His son and wife became directors from then on, but he was still running the show on a day to day basis.

Last seen sipping champagne in local pub while the liquidators were in the process of locking out the workers... He disappeared for a while after that one.

And came back with a different name, I kid you not.

If he were any lower down in the human scale of scumbags, he'd be a recruitment agent. I kid you not.

[PAH]

He disappeared for a while after that one.

Not so long ago he'd have disappeared for good. Shame we're mostly too soft to deal with this scum properly.

There's got to be plenty of bored stalkers out there looking for a new target. Just need a way of attracting enough of them to the scumbag and it'd be like a scene from a zombie film.