X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Debt & Negative Equity

    Investor set for hunger strike against bank

    " It was different for each property/lender - some would be sold, others would be re-mortgaged, and some would redeemed via personal savings. "

    And this is exactly what John Guidi should have been considering in the last 10 years of his mortgages.

    0
    0

    Classic case of failing to plan is planning to fail.

    0
    0

    You could flip that on its head though and say, hardly investors' fault that banks gambled recklessly and caused the crash.

    I'm not commenting about this investor specifically, but many people lost a great deal of money as a direct result.

    Yes, with that volume of property he's clearly a professional investor and should arguably have put himself in a much better position sooner.

    But I can't argue with the fact that he wants to highlight bad practices of banks. They get bailed out while people lose their pensions, savings and homes.

    0
    0

    hardly investors' fault that banks gambled recklessly and caused the crash

    With the exception of those caught up in the "Global Restructuring Group" type cases, highly leveraged investors were highly complicit in what went on and milked the easy credit environment for as long as they could.

    No-one had a gun to their head when they borrowed the bank's money.

    I respect people who take risk.

    I don't respect people who cry about it and blame others when the risk backfires.

    1
    0

    With all due respect John, there was a whole dinner party of people out there making money from it, the banks at the head of it.

    When I first got ill in 2007 and worried as a self-employed person about providing for myself if I was unable to continue working full time, I was chasing away people encouraging me to invest my pension, my savings, remortgage my house and bury myself in borrowing up to the neck because property was a safe investment, hands off investment, couldn't go wrong, least risky and most secure, blah blah blah blah blah.

    I am fairly risk averse and got off easier than many. But to deny that there was a whole industry round this, led by the banks and by a faulty dialogue by people with many years in the industry is ingenuous.  

    While I have little time for those who remortgaged and remortgaged, spent all the proceeds and are now bemoaning their hardship, it's not fair to tar everyone with the same brush. I know several people in a very precarious financial position and two who have already been made bankrupt in similar circumstances who did what you are advised to do when going into a new industry and "listened to the experts". None of them understood the risk. And where they had questioned it, they'd had it explained away in a plausible manner.

    I agree with you that some people have been dangerously reckless. I just feel for the ones who got into property precisely because they thought it was safe.

    0
    0

    I am fairly risk averse and got off easier than many.

    You did the right thing by being risk averse.

    People who weren't risk averse took the hit.

    They are at fault for not being risk averse.

    I know I see things a bit black and white, but I really think it's that simple.

    But to deny that there was a whole industry round this, led by the banks and by a faulty dialogue by people with many years in the industry is ingenuous.  

    I don't deny that whatsoever.

    0
    0

    "... I just feel for the ones who got into property precisely because they thought it was safe...."

    You're too kind.

    Too many people thought property was safe because they naively took a short-term view and wanted to quickly jump onto what they thought was an easy ride on the gravy train.

    Property, in itself, when you take a long term view isn't an easy ride - so people really need to take a deeper look and perhaps the rollercoaster ride that us older LL's have had to endure might give them a different impression; and that's before looking at where things are likely to go as the result of changes to tax and regulation.

    1
    0

    Ultimately we should take responsibility for our own decisions but I feel that advising and investing in BTL should be a regulated activity.  When you consider the regulations for equity release, owner occupier mortgages, sale and rent back, and investments including pensions where the adviser is required to carry out a detailed fact find and risk profile, BTL does appear to be left out on its own.

    1
    0

    A businessman has suspended a hunger strike in Glasgow after bank chiefs agreed to meet with him in London.

    https://www.glasgowlive.co.uk/news/glasg...004730.amp

    In case you were concerned about how this noble crusade was progressing.

    0
    0

    Well, it sounds a lot more complicated than taking out too many interest only loans from the way it is described in that report.

    0
    0