Friend needs advice

[Adam T]

Ade355 said:

Sell as quickly as he possibly can - even if he has to lose 10% for a quick sale. What would you rather have - £500K in your pocket or £500K stuck in low-yield, illiquid, historically overpriced assets?

It SHOULD be a complete no-brainer... however seems very much that its not.

Why would he sell, especially as he could mortgage, say 50% of the value(s) and raise some capitol, whilst still having these properties rented out (value I am not sure) at £X monthly, and use the circa £250,000 > £375,000 to use as depsoists on properties to let out, say small flats/bedists or whatever he fancies, thereby expanding your portfolio, and maybe taking a small cut himself?

Thats my personal opinion.

[stimmers]

If he has bought good property at the right price, there is no way on earth i'd be trying to shift it in this 'false' market

[DucatiGary]

POORCARDEALER said:

As from April 2008..........full rates, another goverment spanking

bugger, that one slipped under the radar!

get labour OUT!

[Ade355]

Adam T said:

Why would he sell, especially as he could mortgage, say 50% of the value(s) and raise some capitol, whilst still having these properties rented out (value I am not sure) at £X monthly, and use the circa £250,000 > £375,000 to use as depsoists on properties to let out, say small flats/bedists or whatever he fancies, thereby expanding your portfolio, and maybe taking a small cut himself?
Thats my personal opinion.

What happens when his now expanded set of assets returns negative growth? Like any leveraged investment his loss is magnified by the degree of leverage. In FX trading you get a margin call when your balance (equity) is gone and you are forced to liquidate your position immediately. Thank god for multiple property owners that doesnt happen for you, you just get 'negative equity' and have Brown to come bail you out at the tax payer's expense as the banks shrug all responsibility...

Very little chance of any significant capital growth in either commercial or residential property for many years to come, just your equity dwindled away by RPI and a bank manager setting your lending rate based on your exposure to risk, not just your credit rating.

[The_Jackal]

No offence but if he has half a million invested in property and still needs to ask advice, then he is way in over his head or has more money than sense.

Bearing mind this is a car site, my advice would be "Buy a bloody Koenisegg and go shag a model, and stop whining"!

[Adam T]

The_Jackal said:

No offence but if he has half a million invested in property and still needs to ask advice, then he is way in over his head or has more money than sense.

Bearing mind this is a car site, my advice would be "Buy a bloody Koenisegg and go shag a model, and stop whining"!

That my friend, is a very fair point.