Oh Dear: What happens when you borrow against the house for a get rich scheme

**Joeman** · 12 January 2012, 07:54

By 2003, he owned 84 houses in Barnsley, returning a profit which meant he and Iona, now 39, had a generous income of £250,000 a year

So thats rental profit of £2,976 per property!!! (cant be right)

By the time we’d paid expenses and fees to manage our properties, we were left with around £35,000 to live on.

erm, if you dont have a job, why not manage them yourself??

Got too big, too quick and was p1ssing the money up the wall on agency fees and school fees... No sympathy im afraid...

**Joeman** · 12 January 2012, 08:03

Also,

but we worked hard for what we had, and we never felt rich.

But they just said..

‘Iona and I did up the house and barns he’d left me before his death, and in 1996 we sold them to a developer and made £600,000 profit

So as far as i can tell, they got given a house, did it up, sold for big profit, and built up a portfolio paying agents to look after it... how exactly is that "working hard"??

**DodgyAgent** · 12 January 2012, 08:05

Originally posted by Joeman View Post

So thats rental profit of £2,976 per property!!! (cant be right)

erm, if you dont have a job, why not manage them yourself??

Got too big, too quick and was p1ssing the money up the wall on agency fees and school fees... No sympathy im afraid...

A bit of good old fashioned envy.
Having said that he deserves everything he got. Anyone stupid enough to buy into such a deal with no local knowledge or experience is an absolute fool. I have been to Romania on several occasions and everywhere you go large tranches of land and property are for sale - it is very tempting. But unless you understand the laws and have someone who is local to that country that you can completely trust, or it is a well trodden path then forget it.

**Joeman** · 12 January 2012, 08:18

Originally posted by DodgyAgent View Post

A bit of good old fashioned envy.

yeah, i wish i'd lost all my money in romania and owed the bank a cool 5 Mill in outstanding loans..

Know what you mean about Romania though, i was tempted back in 2007 to buy some land, even asked a Romanian friend if she would come with me as my guide/tranaslator.. all looked a bid dodgy to me though, so i never went for it...

Did get stitched up on a land banking scheme in the UK once though... luckily the Credit Card company footed the bill for that one

**BrilloPad** · 12 January 2012, 08:48

Originally posted by Joeman View Post

So thats rental profit of £2,976 per property!!! (cant be right)

It is right. All were DSS homes. About £60 per week each is right.

Shame the costs involved are very high. I bought a couple of houses in Burnley in late nineties. Sold them a few years later. I ended up with building society returns. A few tenants were bad - some were just incompetent. As soon as they go empty thieves will strip the copper pipes out.

**MarillionFan** · 12 January 2012, 08:50

At home with the 'Gurus'.

**BrilloPad** · 12 January 2012, 08:53

"He admits to being ‘one of the last breed of Englishmen fast dying out’"

Basically thinks he is owed a living because of his breeding. This is where John Major went wrong - he kept going on about inherited wealth. Maggie wanted people to be rich because they worked for it.

**MarillionFan** · 12 January 2012, 08:55

At no point does it say

'So we pulled our children out of private school'

If you cannot afford £100k a year fees then don't send your brood to private school FFS.

Suity, have a word. Tell them how to get free school meals will you.

**Troll** · 12 January 2012, 08:55

Originally posted by MarillionFan View Post

At home with the 'Gurus'.

L > R
Deffo
Too young
Too young
8 pints

Oh Dear: What happens when you borrow against the house for a get rich scheme