10:13 AM, 30th November 2011, About 13 years ago 21
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Landlord’s Log, the Personal Blog Of Mark Alexander, the Founder of Property118
** I was so shocked when I received this commentary last weekend that it has taken me until now to decide to post it. The following was sent to me as an email by a person who prefers to remain anonymous for obvious reasons. The commenter has not responded to my numerous emails. Is this a joke? I have decided to share it with you because; frankly I was flabbergasted and wanted to see what you have to say. I’ve decided to give this poster a name and a picture and in a strange sort of way I hope he will be back to entertain us all again with his responses to your comments. The name I’ve given to him (at least I think it’s a him) is “The Banker”. The following is what he had to say …
The Banker
I knew that title would catch your attention.
One mans misfortune is another mans opportunity, mine!
You and your highly leveraged buy to let pals are all like lemmings heading towards a cliff, oblivious of your fate.
Well here I am, to warn you of your fate.
I’m not the only one hoping that the next boom will in fact be an implosion in terms property values, you call it a property crash, it will be the making of the likes of me. The chaps on that House Price Crash forum are doing me a big favour by talking up the next crash.
Bring on the great house price crash of 2012 I say!
It’s those of you with highly leveraged buy to lets that made the HPC mob so angry and they want to see you crash and burn. I hope their wishes come true, it will be bloody marvellous for me, crap for the economy, but what do I care? The HPC mob all think it will be their armageddon, fooled into the belief their kids will be able to get on the property ladder. They have a shock coming too. They’ll have a hard job unless they have a Dad like me or my drinking buddies because the lenders will have shut up shop and interest rates will rocket to keep the banks afloat. You watch the FSA allow the banks to change all your mortgage terms, mark my words. You all think you are safe on your Mortgage Express base plus 1.75% deals don’t you? How safe will you feel when they are allowed to increase your margins to base + 4%?
I made a fair wedge off inverse ETF trading off the back of my last banking bonus which was well earned given the cr@p I have to deal with.
I’m sat with about £20 mill cash and so are lot’s of my buddies at my local wine bar.
Whilst all you buy to let mugs are selling up for whatever price you can get we’ll be snapping up all those so called BMV’s off your trustees in bankruptcy for 50% or less of what you paid for them.
We might even decide to rent one of the smaller units back to you if you can find a home owning guarantor who can pass a credit test. You won’t pass a credit check, obviously!
Have no doubt, you will need to rent because you’ll all lose your homes and need somewhere to live, just like everybody else who leveraged their properties over the last 10 years. If you don’t pay what, I’m sure you’ll bleat on about being the extortionate rents, I’ll be charging then I’ll take your guarantors properties too. Fancy a game of monopoly with me?
Best of all, I’ll be one of the elite few in a position to buy. I’m reckoning on 20% returns based on the prices I expect to pay and the demand for my properties. The rest of you can just take up squatting in a boarded up house, which I believe is now illegal in the UK, or take your choice between a tent, a caravan or living on the streets 🙂
If you think these affordable housing schemes will bail you out, forget it. The country will be in such a mess they will never be built and neither will any new homes because the builders will either go bust or won’t build because it won’t make financial sense for them.
I’m also looking forward to those bloody foreigners b”ggering off back to their home countries, it will be better for them than staying here, that’s for sure.
Viva 2012, let the games begin 🙂
Sent from my iPhone
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Sign Up11:38 AM, 16th December 2011, About 13 years ago
Go back 50 years and most people did not expect to have a separate room for each of their children. It was normal for someone to have to live with the “in laws” until the husband got promoted to at least the level of a foreman. My mother working as a teacher expected to live in a bedsit in London – yet people in that type of job now think they have a RIGHT to a 2 bedroom flat in London!
What I am saying is that most of the current “demand” is being driven from what people EXPECT they should be able to have. This is then driven from what the council will give people and what housing benefit will pay for.
There is nothing to say that expectations of what someone without very good job can afford to live in will not have to change a lot when we start to live within our means as a nation. Why should someone in the UK expect to have better housing then someone in China when we are importing most goods from China?