photo credit: easement

Technorati Tags: real estate, real estate investing, property, property investment

I’ve learnt valuable lessons about behavior through my current lack of funds, such as - not having two pennies to rub together makes me negotiate hard - because I have to. I give the impression of being a tough negotiator, when really I haven’t got the option to tread the middle ground. It’s all or nothing.

If I had the funds – I would have paid, as Formula 1 racing drivers would say – ‘for sure’. Yet in this game of chicken – which I didn’t realize I was playing – it’s the mortgage lenders who have blinked first.

To give you some background: After one of my properties was sold with a thumping great loss, the lender pursued me for the unsecured debt. Following a brief telephone call, I’m informed that the lender will accept a settlement of 50% of the total.

What’s wrong with education?

All the way through the repossession process I am reminded that our education system isn’t what it could be. My situation is down to a simple calculation – more money went out than came in. After a few months, I couldn’t make up the shortfall so I stopped paying the mortgage and the property was repossessed. So the lender in its infinite wisdom gets the village idiot to phone and ask if I can pay a cash settlement of tens of thousands of pounds, and guess what – I can’t.

Hard ball

Weeks and months go by with weekly calls requesting that we come to an agreement. Then we reach the end of the road. The lender sent a demand with the next step being bankruptcy. I call to discuss the situation and immediately the lender agrees to slash the debt by a further 50%, for an instant cash settlement. I explain my financial situation and the lender agrees to accept a few hundred pounds in full and final settlement. The lender has finally recognised that they are looking up the barrel of a gun, and so accepts something rather than nothing. I’m relieved that this battle is over, and look forward to many more soon.

What’s the lesson?

The lesson is: Always negotiate as you will be surprised by how much money you can save. It was easy for me, because like I said – there was no middle ground for me to tread.

This is a lesson learnt and one that I will use when I start to see better times ahead. The lesson for you is: Just because your not looking down the barrel of a gun, don’t think that you shouldn’t negotiate hard on anything. What’s the worst that could happen?

photo credit: craighwk
“Trump always insists on having the Trump name alone, but I’m insisting on having Trump next to Hydra… because I feel that Hydra is not less than Trump.”

This bizarre quote comes from an interview in UAE newspaper, the National, with a property investment mogul who can politely be described as a little eccentric.

Sulaiman al Fahim, the chief executive and one-man marketing machine of Abu Dhabi-based international developer Hydra Properties, is engaged in negotiations with Donald Trump to build a tower on Reem Island in Abu Dhabi, the paper says.

‘We don’t do small’

Not much has been revealed about the mixed-use residential and hotel tower, not the number of apartments, the cost or the height, our one clue is “it’s a huge tower, not a normal tower…with Trump we don’t do small towers.” We wait with baited breath.

They’ve hit a snag though, both property tycoons want to be top dog and can’t agree on a the name for the development, hence the enlightening National quote above.

Is Donald about to be Trumped?

Trump better watch out though, Dr Fahim also told the publication:

“I wish that people would appreciate the ideas I come up with, but I always feel like I’m a kind of bulldozer, a fully insured bulldozer that if nobody likes it, it starts moving – even if there are cars in its way, it has to crush the cars and move. I can’t stop. If I have an idea, I have to do it.”

Ouch. Has everyone’s favourite property developer finally met his match?

photo credit: Matthew Shelley

Today I’m on a one-blogger anti-propaganda mission, Michael Moore style. In the first three months of 1992, the time of the last major UK property wobble, just 146,000 UK mortgage sales were completed, according to thisismoney.

Back in March of that year Madness topped the charts, and we all still relied on phones and fax machines for communication. All reporting and commentating on the property crash was done through channels which make the humble email look like a Lamborghini Gallardo.

Disinformation nation

Fast forward to 2008 and every man and his dog wants their two pence worth of soapbox time on the current situation through the wonders of modern technology. Thirty press releases a day pile into my inbox where they elbow each other for attention, and the Skype phone chimes all day. The result? A mountain of claims, counter-claims, plans, schemes, statements, studies and outright propaganda akin to the information battles of World War Two.

Confusing messages

Take Sandbach-based Persimmon homes for instance. Early this month the firm happily pooped out a press release declaring its Mercia office was doing just fine thanks, and Persimmon’s figures ‘flew in the face’ of opinions that the UK housing market is in decline.

A week later its trading statement revealed its completions were down 31 per cent during the six months to June 30. They are not the only ones sending out confusing messages. It’s all too much. I’m off to dig a recession shelter in the back garden and slap masking tape on the windows. Wake me up when the information war is over.

Technorati Tags: property, property invetsment, real estate, real estate investing

photo credit: dominiccampbell

More material for my ‘Ikerous’ blog arrives daily, without fail. This time it’s the turn of the credit card company. It wasn’t my intention to name any of my creditors, but I’ll make an exception if I it’s something you should know about.

I stopped paying my credit card bill a while back and now they’ve got to the point where they’re threatening to send the boyz round…literally. The letter basically says that I have two choices 1) pay the debt in full – ho bloody ho, or 2) come to an arrangement to pay an amount monthly. Neither of these options is viable in my situation as losses accrued on my 10 million pound property portfolio already exceed 1 million pounds.

Lottery funding is required

It’s got to the stage where it doesn’t even make sense to play the lottery each week - a win would be a waste of time. Losses are so high that there isn’t really any point in paying towards any debt. Will the credit card company be the ones to press the big ‘B’ for bankruptcy button? Every time I say ‘B’ I think of that bloody Belinda on Big Brother – not an entirely pleasant thought.

Credit thugs

Back to the letter – I have two options. Failure to accept either of these options the letter carries on, with regret I must add, that the debt will be sold to a third party debt collector who does door step visits – fantastic. Wouldn’t it be funny if I was Ricky Hatton…

The reality of the matter is that the credit card company in question isn’t really out of pocket. Like a fool I have left this card fully loaded for years, just paying the minimum monthly amount, so they’re probably in credit anyway. At least this won’t happen again for a while as credit isn’t really on the radar at the moment.

Technorati Tags: property, property investment, real estate, real estate investing

photo credit: net_efekt

Chocoholics and sweet tooths listen up. Is the thought of living in a gingerbread house with chocolate doorknobs your idea of heaven? Well you could be one step closer with a new housing development.

Okay I’ll be honest, it’s not quite sugar plums and dolly mixtures, but work on creating a £25 million development in the heart of the Cadbury Community is set to begin at the end of the month. The Bournville Village Trust (that’s right, Bournville, the makers of that lovely dark choccie bar, mmmmm) has received funding for 167 new homes on the Lower Shenley estate in south Birmingham.

“unprecedented landscaping”

Part of the redevelopment of the area has already been completed, consisting of 56 new bungalows, flats and homes as well as “unprecedented levels of landscaping, some public artwork and unique security lighting”. Unprecedented landscaping? Blimey. Alan Titchmarsh will be impressed.

The new development will pioneer the Netherlands’ street design ‘Home Zone’. Apparently this means that people and cars will share the same carriageway and pavements, not dangerous in the slightest because drivers will obviously stick to the walking pace speed limit of 10mph….right. Home Zone schemes also include large play areas for children and ample green space.

Flats and family homes

I must warn you though, don’t get too excited because most of the new homes will be used for social renting but 34 private homes will be available, on Parklands, ranging from two-bedroom flats to five-bedroom family houses. Let’s hope it doesn’t get too hot or they’ll melt.

Technorati Tags: property, property investment, real estate, real estate investing

photo credit: Jorge-11

If your impression of Liverpool is all tracksuits, football and scallies, you’d only be partly right. Liverpool is fast becoming the place to be, and it’s worth considering investing in some top scouse property.

Not only is the city basking in Capital of Culture 2008 glory, with a 30 per cent rise in visitors, but the opening of Liverpool ONE has boosted its ratings no end. You don’t have to be Coleen McLoughlin to enjoy the new 1.6 million feet of shopping space, 160 shops and 20 bars and restaurants, and if you want a spot in the heart of all the action, Liverpool ONE also comes with a swanky residential apartment complex called One Park West.

Hubcaps are safe, along with property investments

The 17-storey building is designed by the same architect responsible for the Petronas Towers in Kuala Lumpur - Cesar Pelli. It overlooks the waterfront and consists of 326 studio, one, two and three bedroom apartments, secure parking and 24-hour concierge. Hardly the council flat dwelling, steal your hubcaps image that some people have of Liverpool.

World-class gateway

And now could be the time to invest if you’re thinking about it. Plans have been revealed to turn the city into a ’super-port’ to rival the likes of New York, Singapore and Dubai. The Mersey Partnership (TMP) are hoping to turn the city into a world-class international gateway by improving the existing port, road, rail and air links, with the focus on waterfront regeneration.

So with all the completed, on-going and planned regeneration combined with the Beatles, the Albert Dock and the array of cultural venues like the Tate Modern, Liverpool is heading up the property investment barometer. Calm down, calm down.

Technorati Tags: property, property investment, real estate, real estate investing

photo credit: Stepheye

When I agreed to write about my property investments gone wrong situation, I couldn’t be sure that I would have enough material. Then the post arrives followed half an hour later by a knock on the door - both make me paranoid - and new material ‘et arrivee’.

If this is happening to you – you have my sympathy - It would be easy to buckle and declare myself bankrupt. However: I have a feeling that I can get through this (and so can you) without falling on my sword. I might be totally wrong in my assumptions here – but so far - nobody has pushed the big ‘B’ button, which makes me wonder why.

Go ahead - shoot me

I think the real answer is money. Basically it costs the creditor money to file for a debtors bankruptcy. Unless the creditor is quite sure that bringing this action will give them some, if not all there money back, they probably won’t bother as they will throw good money after bad.

I like to try to put a positive spin on most things, but bankruptcy isn’t one of them. If I could do that – my next job would be with Saatchi and Saatchi, or in the Cabinet. However – like most threats they are only effective if you have something to lose, and frankly – I don’t. Which I feel has put me on the high ground - yeh right!

So if one of my creditors does decide to push the ‘B’ button, they will lose as I really haven’t got anything left to give.

The letter

Just like the fat bloke in the first Harry Potter film, I’ve grown to love Sunday – why? No mail. I believe the Royal Mail is considering stopping weekend mail altogether – Hurrah! I nearly cried tears of joy. It’s another one of those – we’ve just given away your property for nothing letters – asking me to make up the difference. I tell you – The Sultan of Brunei couldn’t make up the difference. This is the start of another round of phone calls with half wits no doubt. ‘Phone calls with half wits’ - could this be a hit TV series?

The Knock at the Door

It’s a chap I’ve grown to know and like, who has to serve me with more papers to attend court and explain why I haven’t made a payment on some other property that was given away. A day out - hurrah!

Technorati Tags: property, property investment, real estate, real estate investing

photo credit: Dr Tran!

While we’ve all been harping on about how amazing Vegas is, we appear to have overlooked a hot property investment opportunity right next door. The desert. That’s right, the cactus filled, dying of dehydration, scorching hot desert. And you thought it was just sand.

The US federal Bureau of Land Management recently lifted a suspension on new applications to build solar power plants on the 258 million acres of desert that it manages, creating a ’solar land rush’ in America. The Nevada desert is now a prime target and land that has long been considered useless is becoming a battle ground for companies wanting to build their solar power plants.

Vultures? What Vultures?

But it’s not just corporates who are targeting the land - private property investors are also vying for space. According to CNN, some are paying over $10,000 (£5,000) an acre for desert dirt which would have cost just $500 (£250) a few years ago. It seems the potential profit to be made from energy efficient solar powered property outweighs the thought of vultures circling your body at the edge of Death Valley.

‘Dubai has done ir’

Maybe I am being a bit extreme - desert property has been shooting up for years - look at Dubai - and the aforementioned Vegas sits happily in the middle of all this land. Investing a few thousand in an acre of land seems like a pretty good deal if you can turn it into viable property, even better if you grabbed it at a fraction of the price years ago.

So, sun drenched property paradise or burning hell hole? You decide.

Technorati Tags: real estate, real estate investing, property, property investment

photo credit: Torley

I’m going to surprise you – I’m writing under a pseudonym - Ikerous isn’t my real name. I’ve chosen the name Ikerous for two reasons. Firstly it describes what I did, and secondly it allows me to write anonymously without the need to let you know my real name – Wilf Armitage.

Neither am I bitter or twisted following my fall from grace, and I’m not embarrassed. I’ve learnt a lot of lessons and I want to share my experience, so some can learn from it and avoid the mistakes I made.

The way we were

I built up a property portfolio with a value in the region of £10 million. All of it was new build city apartments, and I had some pretty impressive stuff – properties that I was really proud of, properties that I furnished to a fantastic standard. I bought at the top end dealing in the spectacular end of the market. It was great - I loved every minute of it, and I wouldn’t change a moment. I got top rents – I was flying, and I got some great deals.

When I got it right – it was really right

I got some fantastic property deals, and made a lot of money. Over the next few weeks I want to explain how I got those deals, and how you can too. When you get it right you can make more money in an afternoon than most people will make in ten years.

Why Ikerous?

I became Ikerous – I took my eye off the ball – didn’t pay attention and flew too close to the sun. I started to believe my own publicity – that’s when I fell off my pedestal. Now I fight a daily battle with property repossessions, and trying to stave off bankruptcy.

I’ll be back

As events unfold, and properties are repossessed I will tell you the story along with my opinion on the event, and the action I intend to take. I will recover from this mess, better for it and more likely to succeed.

Technorati Tags: real estate, real estate investing, property, property investment, financial

photo credit: TorleyInvesting in a home on a desert island which is floating serenely in the middle of a deep blue sea is a lot of people’s idea of the perfect property dream. But architect Vincent Callebaut’s vision could shake up the whole ‘island-living’ image.

The award-winning Belgian has come up with a solution to beat rising sea levels; don’t build new homes on high ground, build them on the water. D’oh, why didn’t we think of that?! Silly old housing minister Caroline Flint for not suggesting this sooner.

His floating ‘Liliypad Cities’ are giant islands which will hold 50,000 people and be completely self-sufficient. Each island will consist of three cities, accessed by marinas, and three mountains. There will be no cars or roads and a lake in the middle will collect and purify rain water. Power will be generated from renewable energy sources such as solar, thermal, wind energy, hydraulic and a tidal power station. They’ll also be covered in plants, housed in suspended gardens.

Invest in floating property now!

The premise is that the islands, free to float around the world, will shelter ‘climate change refugees’ when some of the world’s cities are submerged in water. It certainly beats a caravan in Hull. And with the possibility of sea levels rising 3ft by the end of the century, it might be worth investing in some floating property now.

Mr Callebaut told the Daily Mail:

“The goal is to create a harmonious coexistence of humans and nature. Some countries spend billions of pounds working on making their beaches and dams bigger and stronger but the Lilypad project is actually a long-term solution to the problem of the water rising.”

As long as there are plans in place to coexist with 50ft tidal waves….(I’m also not sure who’s spent billions making beaches bigger and stronger but hey-ho)

‘No escape’

So when the ice caps melt Armageddon-style and London disappears under the Thames, we can all flee to the cities and start a new life on the island. Forever. With no escape. I don’t know if anyone has seen ‘Lost’, but the first sign of a polar bear and I’m off.

Technorati Tags: real estate, real estate investing, property, property investment