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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

See all MNHQ comments on this thread

Original poster

to think all this nonsense about house prices being too high is just that - Nonsense!

905 replies

RazahFluffy · 12/10/2022 00:32

DH and I have long been in the property game. We actually met whilst working as Estate Agents back in 1999!

I've seen a lot in my time as an agent - 2008/2009 were a bit of a blip, but overall, there's one thing I've always had faith in, and that's bricks and mortar and that prices always go up. They aren't making more land after all 😁

As well as working in property, we've got a few of our own. We started off as accidental landlords after we got together and kept both our homes to rent out when we decided it was time to move in together and find a place of our own. Over time we've added a few more to the portfolio.

We are lovely landlords. We let our tenants have our houses as their homes, and we like to do little things like send them Christmas hampers, and know their birthdays so we can send a card and usually a Pizza Express voucher.

Anyway, there's a lot of rubbish being written recently about interest rates and the economy affecting the market. Nothing could be further from the truth where we are!

It's still buoyant and the buyers registering at the agency are no different to usual - excited to either 'get on the ladder' or move to their next step towards their eventual forever home😊Vendors are still confident. They agree with us that houses are actually a bit too cheap, all things considered because inflation is quite high.

The one thing I'd have to say is if you can't afford a mortgage at the moment - think about your expectations. You might have thought previously that you could afford a 4 bed, but if you can only get a 3 bed for now is that really so bad? First time buyers especially I feel need to be realistic!

Property always goes up and it's no different now. We're really confident and having seen it all in this game, we really think it's time to believe in the market💪

OP posts:
Thread gallery
5
jgw1 · 14/10/2022 05:52

ReeseWitherfork · 14/10/2022 01:18

So you are making a profit then aren’t you, you lemon. Except “it’s a brilliant way to live” would suggest you’re supplementing your estate agent income from the houses. But you can’t do that, because you’re paying interest only mortgages. And you’ve already said you reinvest everything back into your portfolio? So essentially you’re actually claiming you’re just taking money out against your houses to buy more houses. So you’ve got a shit tonne of “assets” that you have to liquidate to see a penny, and your entire point of this thread is that if houses prices go down you will lose money because you’re only repaying the interest. So this whole thread is just one big old “la la la I’m not listening to news of tanking economy” attempt to bury your head in the sand. (And I don’t GAF if your vendors are all excited to buy houses, of course they are you numpty, doesn’t mean the market isn’t going to slooooooow. This stuff doesn’t happen overnight and if you’d been an EA for 23 years you would know that.)

You are indeed either a troll or a complete numpty. Thanks for coming to my TED talk.

Show quote history

I have worked out the point of this thread.

It is to explain to us what the Bank of England is doing.

The OP is like pension funds who have massed borrowing upon borrowing, and we all know a market downturn is coming so all that debt is going to come back to bite them.

@RazahFluffy are you sure you are an estate agent and not a pension fund manager?

MyGhastIsFlabbered · 14/10/2022 06:56

"Debt is wealth"
*
In that case I'm fucking loaded Hmm* How many houses should I buy?

newnamethanks · 14/10/2022 07:11

Over-extended OP. It's time to start off-loading your portfolio before the banks want to collect. All at once.

Mummyoflittledragon · 14/10/2022 07:17

What I’ve said needed to be said, for the good of the nation.

Debt is wealth
…War is peace
Freedom is slavery
Ignorance is strength

Ever considered going into politics?

jgw1 · 14/10/2022 07:22

Mummyoflittledragon · 14/10/2022 07:17

What I’ve said needed to be said, for the good of the nation.

Debt is wealth
…War is peace
Freedom is slavery
Ignorance is strength

Ever considered going into politics?

Do you think that they have sufficient lack of self awareness and dubious connection with reality to fit in with the current government?

dustofneptune · 14/10/2022 09:00

This is totally a wind up. OP is only replying to comments that allow for further wind up.

vera99 · 14/10/2022 09:02

Yes, it's obvious now and relishing it !!!!!!!!!!

Monkey2001 · 14/10/2022 09:27

I don't think it is a wind up as there is enough truth within a somewhat confused story.

"Debt increases wealth" is indeed a philosophy which underpins investment strategies. If you can get an 6% return letting and pay 2% interest with 25% equity/deposit, you borrow as much as you possibly can. So if you had £400k you could buy one £400k house mortgage free, "earning" £24k pa or you could use it for 4 deposits, and get £96k pa and pay £32k interest, "earning" £64k pa. However, if the market falls by 20%, instead of losing £80k, you lose £320k, so almost your whole investment. High reward, high risk.

It is called "gearing" and is what pension schemes did, which led to Bank of England propping up the bond market.

jgw1 · 14/10/2022 10:04

Monkey2001 · 14/10/2022 09:27

I don't think it is a wind up as there is enough truth within a somewhat confused story.

"Debt increases wealth" is indeed a philosophy which underpins investment strategies. If you can get an 6% return letting and pay 2% interest with 25% equity/deposit, you borrow as much as you possibly can. So if you had £400k you could buy one £400k house mortgage free, "earning" £24k pa or you could use it for 4 deposits, and get £96k pa and pay £32k interest, "earning" £64k pa. However, if the market falls by 20%, instead of losing £80k, you lose £320k, so almost your whole investment. High reward, high risk.

It is called "gearing" and is what pension schemes did, which led to Bank of England propping up the bond market.

Wouldn't it be better just called gambling that what you invest in continues to give a return above what you are paying?

Much like any gambling it will always come to a horrible end.

AuntSalli · 14/10/2022 10:14

Well it’s not gambling because you need a roof over your head and let’s face it that’s what the house ought to be, everything else is just either a bonus or a hindrance depending on how you look at it and which stage of the game you’re at. Blackjack is not gonna keep me warm at night

Sparklingbrook · 14/10/2022 10:39

Thread #2 has been hidden for MNHQ to look at…

Wichit · 14/10/2022 11:14

Aww, I liked thread two.

Sparklingbrook · 14/10/2022 11:21

There will be a thread 3 probably. Including tutorial of hamper making for your tenants hopefully. 😬

GasPanic · 14/10/2022 11:28

It's a great thread for showing how the poison of ever increasing house prices is affecting this country.

Hopefully the tide is turning and at some point in the future everyone in the UK will be able to afford a decent home at a sensible price.

bettyfretty · 14/10/2022 11:46

Urgh op....you're not my favourite person.

vera99 · 14/10/2022 11:49

I'd say current front runner for Tr@ll of the Year Award.

Mummyoflittledragon · 14/10/2022 13:15

Sparklingbrook · 14/10/2022 10:39

Thread #2 has been hidden for MNHQ to look at…

What do you mean thread no 2? I missed that.

Sparklingbrook · 14/10/2022 13:24

Mummyoflittledragon · 14/10/2022 13:15

What do you mean thread no 2? I missed that.

Show quote history

Appeared last night to whine about what was going on on this thread so a TAAT essentially. It was sensitively titled AIBU to think that we shouldn't let the doom mongers win?!! Completely batshit.

ReeseWitherfork · 14/10/2022 13:26

Sparklingbrook · 14/10/2022 13:24

Appeared last night to whine about what was going on on this thread so a TAAT essentially. It was sensitively titled AIBU to think that we shouldn't let the doom mongers win?!! Completely batshit.

Show quote history

Us fucking poor people and all our mongering of doom. We really do ruin it for property portfolio managers of the world.

Sparklingbrook · 14/10/2022 13:38

ReeseWitherfork · 14/10/2022 13:26

Us fucking poor people and all our mongering of doom. We really do ruin it for property portfolio managers of the world.

Show quote history

It's quite reminiscent of the Covid doom mongering where the same posters would start thread after thread to bleat on and on about the same things with their spurious 'facts' and only reply to posts in order to continue the nonsense.

Kennykenkencat · 14/10/2022 13:51

Monkey2001 · 14/10/2022 09:27

I don't think it is a wind up as there is enough truth within a somewhat confused story.

"Debt increases wealth" is indeed a philosophy which underpins investment strategies. If you can get an 6% return letting and pay 2% interest with 25% equity/deposit, you borrow as much as you possibly can. So if you had £400k you could buy one £400k house mortgage free, "earning" £24k pa or you could use it for 4 deposits, and get £96k pa and pay £32k interest, "earning" £64k pa. However, if the market falls by 20%, instead of losing £80k, you lose £320k, so almost your whole investment. High reward, high risk.

It is called "gearing" and is what pension schemes did, which led to Bank of England propping up the bond market.

But as long as you continue to rent out the houses and they cover the mortgage repayments you don’t physically lose any money.

Wait for the market to correct and then sell when the mortgages have been paid off by the tenants and you are in profit far more than if you had just bought one house and lived in it.

Manopadmanaban · 14/10/2022 15:28

I hope OP comes back tonight with her infinite wisdom.💪

DoubleDinnurs · 14/10/2022 15:38

Is this the other thread started by that desperate estate agent worried about not making any money or is this a load of Tory bots in denial about the housing market crashing?

Threads like this just say to me that we should all be very worried. Very desperate.

I've heard they are crashing at least 20%, but likely 35-40%. In other words, back to 2014 levels.

It's shit, but we make the same mistake with housing time and time again. They need to be homes, not an investment.

DoubleDinnurs · 14/10/2022 15:48

Sparklingbrook · 13/10/2022 23:15

Yes, it does seem that way. Maybe they have shares in exclamation marks too. It's all very very odd.

Show quote history

I think we should put it in classics. The stupidity is hilarious.

LickThis · 14/10/2022 16:48

I agree @DoubleDinnurs it's brilliantly bonkers Grin