http://www.guardian.co.uk/money/2007/dec/08/buyingproperty



edit:spp

Here's the correct link...

property sense

Oh well, I'm proud to be an idiot in that case. Clearly in 6 months I won't be able to buy back the house which is already worth 10 grand less than I sold it for 6 months ago. Hmmm.

Beenyworld is a place far away from imploding banks, CDO's, SIV's, mortgage bondholders who have just had their contracts ripped into shreds by Paulson.

There is a financial bomb under Beenyworld and a billion litres of magnolia is not going to cover it.

There's a poll beneath the article: "Would you be mad to buy a house now"

Currently Yes 50% No 50%.

Doesn't say how many votes.

Pretty impressive sentiment indicator (unless only I and one other person have voted!)

'There is a financial bomb under Beenyworld and a billion litres of magnolia is not going to cover it'

ain't that the truth.She knows too.read what she says about BTL

Interesting comment from the Wilsons in that article:

"The prices developers who advertise in the newspapers are giving are pure fantasy. The prices of flats are dropping, dropping and dropping. There are some flats in Maidstone which went on the market at £240,000 relatively recently which are now being offered to me at £137,500. I wouldn't buy them even if they were down towards £100,000."

.....................because we can no longer refinance

Calling people "right idiots" and "true idiots" hardly makes Beeny look professional.

She quickly realised she could make more money making property porn than she could in property itself. Says a lot.

Re the Wilsons, I have always thought that a business is worth the sum of it's assets minus the sum of it's liabilities. Are property businesses now valued differently, ie ignoring liabilities (mortgages)?

It's this type of reporting that really gets my goat. Why is it considered gloomy to want to pay less for place to live? We never want cars or food to go up in price, so why is it any different for houses?

Clearly she doesn't anticipate prices falling as much as they will do, but then almost no-one does, because they can't think of a single example or reason for prices to fall to crippling levels.

Here is the problem. If you buy now at prices currently being asked (irrespective of whether or not this is the peak) you have to find about one years take home pay to fund the minimum deposit on a 250k home and you are then saddled with a massive monthly payment for years to come. If your home does come down in value the next one you try to buy may be cheaper but you will not have the deposit due to negative equity and you will be unable to remortgage for the new home because the debt you already held would be more than the value of the new home

Are these so called experts really that stupid or is it intentional VI bull.

What you're missing, is that in Beenyworld, you mark to model, not to market.

So their assets will probably continue outstrip their liabilities, gaining 10% YoYoYoYoYo.... a bit like a gambler's perception of their own wealth, as they double down one more time.

That's not how businesses are valued at all.

she's simply v. over-rated due to being cute and cute works on tv., doesn't translate too well to print though eh? Her book/s is /are 5hite too, as is her dating agency nonsense...still...isn't she lovely

Would you have to be mad to buy a property now?
Yes 61%

No 39%

And there's the telling line.
What confidence she must have in the housing market.
She's been setting up a different business.

Excellent real world post!

p-o-p

Simple ones are surely, how much goodwill and growth potential can there be in a "one man band" BTL "empire", although I should have stated balance sheet value.

I would have thought that it's rather more idiotic to suggest to someone that they should buy now and get bogged down with a huge debt that could seriously challenge their financial future. The mentality to buy a property even if its value seems beyond common sense and fundamentals, must be the most idiotic suggestion going. Well, idiotic or selfish.

As for Beeny bag, she should stick to making useful programmes about additives in cosmetics. And if that contract's dried up and she fears she can only get work in Pwoperty, then she'd best get her sweet cheeks down the Jobcentre and sign on, she won't get those NI credits sitting at home gawping, waiting for more pwoperty shows to do - there's bound to be less of them to do now as economics shift. Just as in the shares boom - you can only work it while it's hot.

The purpose of this article was in fact to publicise Sarah Beeny's dating website, as can be observed in the last paragraph of her comments. That's the reason why Financial Planner's comments were relegated to last in the the article, he's not set up a dating website (as far as I know).

Besides, when Sarah Beeny appears on here TV programs and tells people 'You probably can get X-thousand pounds for this' and is then simply proven wrong because some fool comes along and pays over the odds for the property i.e. she's consistently wrong. Either that or she's deliberately cautious, but why should I believe her now that she's more bullish given that she gets it wrong in a bullish market ?

Back to 50/50 now.

In other news, most of the right thinking, increasingly enlightened public no longer believe a word the mainstream media says, questions the government, and is beginning to wake up to distributed market principles and inequality.

Bob Edwards, an ordinary bloke with an internet connection, said, "I can make up my own mind without deliberate misrepresentation of the truth by a whole tier of vested-interested painted clowns whose raison d'etre is maintaining the ******ed up propaganda systems which continue the slavery of the masses."

Unfortunately, we cannot bring you a video of Bob, because he's not very attractive, had a few days of stubble and was in a slightly torn dressing gown. So he doesn't count.

How sweet to be an idiot!

http://www.youtube.com/watch?v=jM_QAFJ80GY

also

http://www.youtube.com/watch?v=rWBRZ-duNuk&NR=1

(don't think the 'as harmless as a cloud' works with the image though).

Sarah Beeney has a new career, it's called TV.
Fot this career you have to sell your sole, morals and common sense.

(edit) ps 2meterbear - how are things now, many offers for work?!?!? http://news.sky.com/skynews/article/0,,30100-1295327,00.html

Yes. It all seems a bit fishy.

"Idiot wind, blowing every time you move your mouth,
Blowing down the backroads headin' south.
Idiot wind, blowing every time you move your teeth,
You're an idiot, babe.
It's a wonder that you still know how to breathe."

http://www.youtube.com/watch?v=-BwcCZA8B_A

Sounds like a load of cobblers.
It will never last.
I wouldn't care to be in her shoes.
You need to be well heeled.
[think I covered most of th eeasy ones ]

Thanks, Beeny and her ilk don't live in the real world. Struggling to find a deposit is not on their radar and they seem to presume that everyone is already in the market with large gains to trade forward.

Hmm, now what are we to make of that? Presumably the laws of investment and economics are too complicated for the average home owner and they should heed her advice and not STR. Silly, naughty people. On the other hand, for me (Queen Beenie) and my shrewd investor buddies into BTL, you should not BTL because the market is about to tank it and you can't get enough blood as a blood-sucker.
Ms Beenie would appear to be suffering from some sort of mental schism, in which she believes those with the power to accelerate market falls (STR) are bad - on the one hand and those who might lose money in treating property as an investment, on the other hand.

Okay, okay i surrender!

Having 2 kids and a late night previous is my excuse!

Beeny says -"Potential buyers are in the grip of irrational fears." Whether it's irrational or not is a bit beside the point as far a house price crash is concerned. Buyers in the grip of fear = house price crash. 100% guaranteed !

What we've seen over the past few years has been 'buyers in the grip of greed.' I don't remember V.I's complaining that it was irrational .

That was my first thought, it's all VI bull to scare people from keeping out the market or sellling up. Like the statement that selling now would mean they can't buy in future

1. I think her point on STR was that it is very difficult to call the top of the market and you could lose more than you gain.

2. similarly with BTL, there is a huge potential dosnide and to keep mewing on your existing portfolio to buy more is ultimately a doomed scenario. Unless you get out at the right time, but in that case, see 1 above

Also I think the market over the last couple of years has been both greed and fear on the part of buyers.

Greed from the BTLers who think property is a one way ticket to Richville.
Fear from would be owner-occupiers who think they will never be able to afford a property if they don't buy right now.
Both parties are probably reviewing that right now, although some will be fooled by the rate cut, thinking that the government "won't let a property crash happen". Of course then they will try to get a mortgage and or form a chain

Erm.... future profits/losses have quite an impact!
It's all about the predicted future and past cashflows and the bottom line relative to the share price (if it's a PLC)!

I meant, and should have said, balance sheet value.

http://www.housepricecrash.co.uk/forum/ind...st&p=881639

I used to have a lot of respect for La Beanbag, but now I just think she's a moron like the ret of them.

Not understanding the folly of buying at the peak even 'if you are going to be there a few years' is a schoolboy mistake.

Overpaying for an asset that then falls in value puts you at a competitive disadvantage against others who didnt.

I also now suspect she just 'got lucky' with her own property 'investments', just like the rest of us. After all, for 6 years, she's been doom and gloom and 'dont be a fool' followed by 'but the rising market saved him'. Then last year she was 'youd be mad to buy now, I'm getting out of property'. Now she's 'you cant ;lose in the long term'.


Complete over-jugged ******tard biatch.


And btw, what the HELL is that weird lump on her lower lip? Looks like a herpes sore, but IT NEVER GOES.

""I think you would be a right idiot if you sell now and try to make a profit by buying back later. I know people - even quite clever guys - who have tried to do this in the past, believing that prices were at a peak. Within six months they couldn't afford to buy back the flat that they had sold."

AND WHAT, praytell, does she know about investing?

Once she has made a few million from investing, I will listen to her (a bit).
Having the right shape breasts has nothing to do with investing skill

So has 'str hating' Mrs. Beany become the new Bruno?
Or is that 'Mrs Bean' living in the fantasy comic world of the UK, like the Beano, where there is no financial exit strategy?

Curse that 'Yazz curve' school of economics.

http://www.youtube.com/watch?v=eVeqiCbp7Ug

Would you have to be mad to buy a property now?

Was 64% Yes now.

Can you imagine a BTLer of flats reading that? Ha, flats are falling markedly. And as for Wilsons, houses to follow, you muppets.

What is the average tenure on a house these days - about 5 years? That looks like perfect timing if you enjoy getting out in the basement.

In Gordon's miracle economy, you would have to survive at least 4 restructurings to make double figures, or work in a nice cosy corner of the public sector.

http://www.youtube.com/watch?v=9yBDxrpU098

Enjoy Beeny lovers!

So STR's are idiots are they ? I and my wife bought at the low point of the last crash. Result we now have no mortgage and 220k of equity from paying about 40k of mortgage payments. Timing in property is everything, and if Ms Beeny doesn't know that, more fool her.

Why pin THIS thread?

Apart from giving us an example of idiosyncratic moderation policies?

(haha- just joking)

Becasue it has an HPCer in it.

I get sick and f**ing tired of hearing the old mantra "interest rates are low compared to the 15% of 15 years ago" bla blah.

Yeah, and house prices were 1/3 of the price back then. Now it is even more dangerous if rates go over 5% because the debt is higher.

Some people are as thick as pig shi+

It is quite amazing how a fear of prices falling is "irrational" but the term never gets applied (in the mainstream) to the opposite: belief that the market will continue to go up.

Yeah well thats why I think people are idiots if they buy places they couldnt stay in. For example jumping into a 2 bed "luxury" flat that you'd never want to raise a child in. I think its very different for those looking to buy a longer term family home that you intend to stay in for 10-20 years.

Your situation above forgets that there would be 10years of repayments and 10 years of pay rises + (you'd hope) promotions. Sure you might start at 90% L to V but this will drop. This is been's point. No one will argue that trying to turn over flats for a profit every couple of years going fwd is going to be a great business model!

I can relate to this. Im now two years into my purchase. I see rents rising around me yet my repayments are fixed, my pay goes up allowing bigger and bigger overpayments saving tens of thousands in future interest charges. etc etc.

Of course timing the market will save some people loadsa money - and good luck to those who have bet their house on a fall. Sadly I cant afford to take that risk and not only that I recognise that I dont need to! Sure if I was uber greedy and saw the chance to snuffle some extra cash then I might go for it. But in the long term the risk doesnt outweigh the benefit. Yep perhaps it means I'll never own a Ferrari. But you know what - I can live with that!

My pop bought an investment at the last grand peak and saw the value drop by 50% by the 90s. He sold that place for 5x the purchase price in the next peak! Yep he could have made more. But ya know what, he's not crying into his soup every night!

Good luck to the gamblers, Id hate to see anyone lose, personally I like to be in control of my own destiny .

Where? Why not put it in your profile - it does help...

BTW - rents have risen below NAE for the last 10 years. Also, on E Herts / W Essex border they have been static and falling for 3 years. I can personally attest to that. 3 bed semi was 950 now 875 etc