Property crash, just maybe it really is different this time (Part 2)

9.2k · February 6

31 minutes ago, sancho panza said:

10%?! How is that even possible!

9.3k · February 6

1 minute ago, Bear Hug said:

10%?! How is that even possible!

https://en.wikipedia.org/wiki/Home_REIT

Home REIT is a property company which invests in the provision of sheltered housing for homeless people throughout the United Kingdom. The company is listed on the London Stock Exchange.

History

Home REIT was launched on the London Stock Exchange in October 2020 raising £240 million in what turned out to be the largest initial public offering of any investment trust in the year.^[2] It used the proceeds to invest in some 500 properties for homeless people around the United Kingdom.^[3]

The company went on to raise a further £350 million in September 2021, and used the proceeds to buy another 366 properties.^[4] After that, it raised another £150 million in May 2022,^[5]^[6]^[7] and used the proceeds to acquire another 216 properties, so diversifying its portfolio of sheltered accommodation for homeless people such that, by then, the properties were let to 28 charities or housing associations in 126 local authority areas.^[8]

On 7 December 2022, a group of shareholders claimed the company had misled the market by investing in properties occupied by tenants who are not vulnerable and therefore would not qualify for Housing Benefit payments.

9.2k · February 6

3 minutes ago, sancho panza said:

https://en.wikipedia.org/wiki/Home_REIT

Home REIT is a property company which invests in the provision of sheltered housing for homeless people throughout the United Kingdom. The company is listed on the London Stock Exchange.

History

Home REIT was launched on the London Stock Exchange in October 2020 raising £240 million in what turned out to be the largest initial public offering of any investment trust in the year.^[2] It used the proceeds to invest in some 500 properties for homeless people around the United Kingdom.^[3]

The company went on to raise a further £350 million in September 2021, and used the proceeds to buy another 366 properties.^[4] After that, it raised another £150 million in May 2022,^[5]^[6]^[7] and used the proceeds to acquire another 216 properties, so diversifying its portfolio of sheltered accommodation for homeless people such that, by then, the properties were let to 28 charities or housing associations in 126 local authority areas.^[8]

On 7 December 2022, a group of shareholders claimed the company had misled the market by investing in properties occupied by tenants who are not vulnerable and therefore would not qualify for Housing Benefit payments.

Homeless and do not qualify for a housing benefit?! That's quite an impressive combination.

43.8k · February 6

2 hours ago, Bear Hug said:

Homeless and do not qualify for a housing benefit?! That's quite an impressive combination.

Intentionally homeless.

Easy to achieve here.

Nearly happened to me a couple of years ago.

31.3k · February 6

https://www.propertypal.com/40-orby-drive-belfast/929319

....I know this house will seem cheap to those in the south of England, but I know that area well and the house would have been £90K at most in the late 90's then soared to about £330K-ish during the 06 boom and bottomed out at about £170K in 2012 during the crash.

Perhaps with the inflation this is what a house like this should be worth but this is the kind of house my Dad bought on a £35K inflation adjusted single salary family and raised a family in....ouch...

Edited February 6 by JoeDavola

2.9k · February 6

2 minutes ago, JoeDavola said:

https://www.propertypal.com/40-orby-drivers-belfast/929319

....I know this house will seem cheap to those in the south of England, but I know that area well and the house would have been £90K at most in the late 90's and bottomed out at about £170K in 2012 during the crash. Perhaps with the inflation this is what a house like this should be worth but this is the kind of house my Dad bought on a £35K inflation adjusted single salary family and raised a family in....ouch...

Nice gaff. 350k+ good parts of Brum.

3.8k · February 6

44 minutes ago, JoeDavola said:

https://www.propertypal.com/40-orby-drive-belfast/929319

....I know this house will seem cheap to those in the south of England, but I know that area well and the house would have been £90K at most in the late 90's then soared to about £330K-ish during the 06 boom and bottomed out at about £170K in 2012 during the crash.

Perhaps with the inflation this is what a house like this should be worth but this is the kind of house my Dad bought on a £35K inflation adjusted single salary family and raised a family in....ouch...

You should go for a viewing. Looks nice.

19.9k · February 6

Downward trend still in place.

https://propertyindustryeye.com/uk-rental-prices-fall-for-third-consecutive-month/

UK rental prices fall for third consecutive month

February 5, 2024 | Marc da Silva

UK rent prices have dropped for a third consecutive month, with the biggest value of decreases noted since the autumn of 2020, the latest HomeLet Rental Index shows.

The data, which is released monthly and analyses archived rents to paint a general picture of the UK market, shows that rents have fallen by an average of 1.3% over the past quarter, with the biggest drop recorded in London, down 2.2% during that period.

But the Midlands – both East and West Midlands – have reported rent hikes, unlike the rest of the country this month.

2.3k · February 6

1 hour ago, Phil said:

Nice gaff. 350k+ good parts of Brum.

£450+ In good areas of Halifax with an average salary ~30k... maybe not, just spotted its a semi

Noticed a few recent properties listed, well dressed, expensive gaffs, arial photos etc but notably taken during the SUMMER. I don't believe these are relists and neither does PropertyLog. What gives? Professional kite fliers?

Edited February 6 by Cosmic
spotted its a semi

53.5k · February 6

6 hours ago, Bear Hug said:

10%?! How is that even possible!

Renting to people without a pot to piss in.

53.5k · February 6

From Lex in Mar 23.

Demolition jobs are rarely as effective as Viceroy’s attack on Home Reit. The short seller swung its wrecking ball against the UK social housing fund late last year. It alleged that valuations were inflated and many tenants were unable to pay rent. The first claim was always going to be arguable but the second accusation is proving accurate. On Monday, tenants representing 18 per cent of rents filed for voluntary liquidation. Under a quarter of Home Reit rents were paid up to date at the end of last year. Home Reit listed in 2020 with a plan to provide accommodation for the homeless. It was a perfect fit for the growing trend of ESG investing. But the promise of long-term, inflation-linked rental incomes and implicit government guarantees has since rung hollow. Home Reit shares lost 70 per cent of their value in 2022. They were suspended in January pending an accounting investigation. Lotus Sanctuary, which represents 12.5 per cent of Home Reit’s annual rents, is one of the charities now in liquidation. It stopped paying its rent at the end of last year. With some tenancy companies sharing the same founders, a domino effect of insolvencies is one possibility. Viceroy highlighted outsized profits from transactions, which it alleged were artificially inflated for dealings in substandard properties. Home Reit denies wrongdoing but the National Crime Agency is investigating whether any bribery also played a factor. Civitas and Triple Point are also UK-listed social housing landlords. They are under increased scrutiny. Their shares have lost 37 per cent and 46 per cent respectively since the start of 2022. Both are trading at discounts to net asset value of about half. In February, Bluestar Group, emerged as a potential buyer for Home Reit. It had a prior relationship with Home Reits investment manager Alvarium. Independence looks shaky. Besides takeover now seems an unlikely end to this saga. As they clamber from the wreckage, shareholders should ask themselves which other companies have glossed over weak financials with ESG credentials.

https://viceroyresearch.org/2022/11/23/home-reit-no-place-like-home-reit-thankfully/

1.6k · February 6

2 hours ago, onlyme said:

Downward trend still in place.

https://propertyindustryeye.com/uk-rental-prices-fall-for-third-consecutive-month/

UK rental prices fall for third consecutive month

February 5, 2024 | Marc da Silva

UK rent prices have dropped for a third consecutive month, with the biggest value of decreases noted since the autumn of 2020, the latest HomeLet Rental Index shows.

The data, which is released monthly and analyses archived rents to paint a general picture of the UK market, shows that rents have fallen by an average of 1.3% over the past quarter, with the biggest drop recorded in London, down 2.2% during that period.

But the Midlands – both East and West Midlands – have reported rent hikes, unlike the rest of the country this month.

I've got my eye out for a place to rent, still seems completely mental to me, in fact even more so than a couple of years ago last time I was looking and prices have gone up at least 20% since then.

There's almost nothing available, and if something comes on agents don't bother taking phone calls because they just get inundated - some of them have a system set up that if you call it texts you a link to a credit check you have to complete before they will consider showing you a place, then they don't get back to you anyway, can't blame them as they must be getting many dozens of enquiries for each property.

9.4k · February 7

13 hours ago, JoeDavola said:

https://www.propertypal.com/40-orby-drive-belfast/929319

....I know this house will seem cheap to those in the south of England, but I know that area well and the house would have been £90K at most in the late 90's then soared to about £330K-ish during the 06 boom and bottomed out at about £170K in 2012 during the crash.

Perhaps with the inflation this is what a house like this should be worth but this is the kind of house my Dad bought on a £35K inflation adjusted single salary family and raised a family in....ouch...

Indeed, a mate of mine bought on Orby Drive. Exactly the same house as that... except.

Minus back and loft extension, kitchen was only fit for one person at a time, fridge was in the next room.
No block paving front.
No double glazing.
coal fires and solid fuel central heating.
Cold and draughty as fuck, bastard to heat.
No fancy decking or fake grass or pegola or she shed.
Garage had a rickety plywood door not a double glazed extra room.
worn carpet and old lino throughout.
A lot didnt have the dropped kerb and driveway so just park on the street.

295 is a bit ridiculous as the inflation calculator has it as 165 but 25 year mortgage in 1999 on 90k you would have paid 180 or so overall plus all of the above.

18.6k · February 7

UK housebuilder Barratt said it had agreed an all-share takeover of rival Redrow valuing the latter at £2.5bn.

Under the terms of the deal Redrow investors will receive 1.44 new Barratt shares for their own stock which would leave them with 32.8% of the combined group and Barratt shareholders with the remainder.

The terms also imply a premium of 27.2% to the closing price per Redrow Share of 600p on February 6.

https://www.hl.co.uk/shares/shares-search-results/b/barratt-developments-plc-ordinary-10p/share-news

February 7

5 minutes ago, Democorruptcy said:

UK housebuilder Barratt said it had agreed an all-share takeover of rival Redrow valuing the latter at £2.5bn.

Even less competition in the housebuilding sector, which can't be good news.

31.3k · February 7

17 minutes ago, belfastchild said:

Indeed, a mate of mine bought on Orby Drive. Exactly the same house as that... except.

Minus back and loft extension, kitchen was only fit for one person at a time, fridge was in the next room.
No block paving front.
No double glazing.
coal fires and solid fuel central heating.
Cold and draughty as fuck, bastard to heat.
No fancy decking or fake grass or pegola or she shed.
Garage had a rickety plywood door not a double glazed extra room.
worn carpet and old lino throughout.
A lot didnt have the dropped kerb and driveway so just park on the street.

295 is a bit ridiculous as the inflation calculator has it as 165 but 25 year mortgage in 1999 on 90k you would have paid 180 or so overall plus all of the above.

Well I'm not saying it should still be 90K of course, but I maintain £300K is mental....and that same calculation at the end applies £300K with a 25 year mortgage nowadays will be £600K if IR's stay the way they are!

If the market was sane that house would be £200K but "if yer granny had balls she'd be yer granda" as they say

A nice smaller house came on sale the same day too - someone's made the most of a small house; this is where Stuey (RIP) had the right idea he knew he was likely staying single so didn't buy more house than he needed:

https://www.propertypal.com/2-dunraven-gardens-belfast/929096/photo-2

30.4k · February 7

3 minutes ago, JoeDavola said:

Well I'm not saying it should still be 90K of course, but I maintain £300K is mental....and that same calculation at the end applies £300K with a 25 year mortgage nowadays will be £600K if IR's stay the way they are!

If the market was sane that house would be £200K but "if yer granny had balls she'd be yer granda" as they say

A nice smaller house came on sale the same day too - someone's made the most of a small house; this is where Stuey (RIP) had the right idea he knew he was likely staying single so didn't buy more house than he needed:

https://www.propertypal.com/2-dunraven-gardens-belfast/929096/photo-2

it is £200k plus £100k for the attic conversion

31.3k · February 7

1 minute ago, ashestoashes said:

it is £200k plus £100k for the attic conversion

As in that kind of attic conversion would set you back the best part of £100K these days? Surely not?

Edited February 7 by JoeDavola

9.4k · February 7

1 minute ago, JoeDavola said:

As in that kind of attic conversion would set you back the best part of £100K these days? Surely not?

At least.

9.4k · February 7

10 minutes ago, JoeDavola said:

A nice smaller house came on sale the same day too - someone's made the most of a small house; this is where Stuey (RIP) had the right idea he knew he was likely staying single so didn't buy more house than he needed:

https://www.propertypal.com/2-dunraven-gardens-belfast/929096/photo-2

Think how much that back extension would cost to do now. They are practically giving that house away for a little more than the cost of the extension.
The gas heating has given them that wee bit of outdoor space back instead of having the oil tank there.

31.3k · February 7

3 minutes ago, belfastchild said:

Think how much that back extension would cost to do now. They are practically giving that house away for a little more than the cost of the extension.
The gas heating has given them that wee bit of outdoor space back instead of having the oil tank there.

Tidy wee house isn’t it. Better value than a flat - the flats I was looking at were the same size as that house but £40k more.

Edited February 7 by JoeDavola

9.4k · February 7

Just now, JoeDavola said:

Tidy wee house isn’t it. Better value than a flat - the flats I was looking at were the same size as that house but £40k more.

Council tax will probably be tiny compared to service charges and you are not worried about no offstreet or onstreet parking which would put a lot of people off.
Gable wall and old house will mean it will be more expensive to heat than an apartment but its ready to walk into with nothing to do by the looks of it.

18.6k · February 7

Halifax up again

Quote

UK house prices rose for the fourth consecutive month in January to their highest level since October 2022, adding to signs of stabilisation in the property market as mortgage rates ease.

The average UK house price increased 1.3 per cent between December and January, mortgage provider Halifax said on Wednesday. It followed expansions in the previous three months, and was the fastest monthly rate of increase since June 2022.

The rise took the average house price to £291,029, the highest since October 2022. Prices were 2.5 per cent higher than in January last year, the fastest annual rate in 12 months.

The data is the latest sign that the property market is recovering from the hit to demand caused by higher borrowing costs since the Bank of England began raising interest rates in December 2021.

https://www.ft.com/content/f085fc13-fdd4-4b83-b458-5115ff4e81a4

53.5k · February 7

BBC says- You lazy white cunts.

'My journey from racist abuse at the tills to property tycoon'

https://www.bbc.co.uk/news/business-68203736

A colleague, who knew he was entrepreneurial, gave him a book that would have a lasting impact on him. Rich Dad, Poor Dad by Robert T Kiyosaki advocates investing in assets like real estate to get ahead in society.

Inspired, after graduating from university, he began investing in the UK property market, buying and selling flats off-plan from developers (before they were built).

Although he took a hit during the 2008 financial crisis, by 2013 he had made enough money to found his Rehoboth Property Group business.

https://suite.endole.co.uk/insight/people/24213858-mr-sanmi-adegoke

Oldest LtdCO is 2018.

You want to hover your mouse over the name to see assets/liabilties

Then you might want to apply much higher IRs and much lower asset prices.

All his properdee development is in the shitholes part of London.

I reckon hes several million in the shitter at the mo.

https://find-and-update.company-information.service.gov.uk/officers/Y7VhpaAT53M2IxqNR31CEtWpyb4/appointments

CHarges are held by a number of high charging non banks/fincos and various other Nigerians.

8.3k · February 7

wonder if hes wearing massive red shoes and has a red nose in his pocket.

Welcome to DOSBODS

Property crash, just maybe it really is different this time (Part 2)

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