I'm going to rectify that right now and inaugurate my new UK Property supplement with a high quality investment opportunity that's only just come to the market...
Ordinarily, I wouldn't publicise the existence of such a screaming bargain and would hope to quietly snap it up for myself but a) I do not have 250 Large to spend on a cell, and b) I am not insane
In its favour, as well as being in a desirable (sic.) part of North London and close to a railway station, when the time comes, anyone shrewd enough to invest in this compact and bijou residence can have their executor shovel a few spadefuls of earth on it and have it double as their grave
Only the chances are that whoever buys this place will die still owing money on it. So, their corpse would have to turfed out and dumped on a tip and the property put back on the market for the next smart cookie to buy it
Assuming a 10% deposit, a loan of £225,000 at a 5% mortgage rate, this slave hutch can be yours for £1,350 (repayment) or £950 (interest only) per month. When the banking industry decides it wants to take some more money out of your pocket and mortgage interest rates go up to 8% that will be £1,750 and £1,500 respectively. At 10% that will be £2,050 and £1,850
The really insane thing is that I know people who will tell me how much sense this makes. People who have made a *lot* of money flipping properties in the same area that are even more ghastly than this one
The trick is the flipping part
Millions of people in the UK have been playing a nationwide game of financial pass the parcel and as long as they're not the ones left holding the over-priced property with the eye-watering mortgage when the music stops they've won
Only they won't have won, because the economic lives of millions of people left holding over-priced properties with eye-watering mortgages are going to go tits up and everyone is going to have to bear the cost. People who played the property game and those who stayed out of it, all of them.
(As an aside, I understand typical mortgage rates in the UK to be currently in the region of 5% to 6% whereas the savings rate on a typical bog standard deposit account is 0.25%. That's a 20 fold gross profit on the banks' cost of funds. An absolutely eye-watering level of usury by any measure. I suspect that there isn't much outcry over that as most people don't have much in the way of savings and those who do made them off the back of property inflation. However, the banks are getting a lot of that 0.25% money from the government (i.e. the citizens of the UK) and then charging people 5%+ to borrow it back. So, one way or another, people are funding their own debt slavery, whether they are conscious of it or not)
And whether you smell the whiff of conspiracy, or plain stupidity, it's worth asking yourself why virtually no-one, actually I believe no-one, in the mainstream press or government ever questioned the sustainability of house prices rising three, four, five times faster than wages indefinitely. The insane and ruinous inflation of the cost of a fundamental requirement of life, as necessary as food or water, was trumpeted to the heavens
Why are all of those fuckers claiming the Crunch was an unpredictable surprise?
How dumb would you have to be not to see it coming? At the very least this demonstrates that the entire existing system of financial regulation and education needs razing to the ground and rebuilding from scratch
That is if you assume our system of financial regulation and education was put in place to protect and nuture the ordinary muppet on the street.
I've worked in finance so I don't
So, we can't afford our own homes, mum and dad are both working to pay the bills, mum and dad are also maxed out on debt, deposit interest rates have been reduced to virtually zero, most of our shit is manufactured by 3rd world slaves, the UK's sold all its oil, most of the infrastructure has been sold off, the financial future of the next few generations has been mortgaged to the hilt, a bugger load of spend has been hidden temporarily in PFI deals and the government has written a lot of bad cheques. Like a junkie or a gambler with an incurable addiction the UK, and the rest of the West, has sold, pawned, borrowed or stolen everything it can just to get through each day, with no thought of tomorrow
Now what?
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