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Britain Has 185,000 Property Millionaires


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Britain Has 185,000 Property Millionaires - And Rising Fast

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http://www.dailymail.co.uk/news/article-1382561/Britain-185-000-property-millionaires--rising-fast.html

 

Around 185,000 people in Britain are now ‘property millionaires’ with homes worth £1million or more, research reveals today.

 

pthirties3_1428556c.jpg

 

It highlights a housing apartheid in this country, with many people living in homes worth a fortune - but others unable to get onto the ladder.

With an average salary of £26,000, few can afford to buy when the average price of a home is around £162,000.

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Don't you love the way they count a "property millionaire" - based on the value of the property, not the equity in it. The more banks are willing the lend, the more "property millionaires" can be minted.

 

(I have created a new term: "property Debt-lionaires" to describe people who have mortgages exceeded one million pounds. And I recall the comment of the BofE governor: "Debt owed is a fact. Property value is a matter of opinion only."

 

This sort of thinking - buying property to "get rich" was one of the major causes of the big slide in real wealth in the US:

 

networth-1945.png.jpg

 

(Real wealth in the US is now back below 1965 levels)

 

How soon before we see something similar in the UK?

 

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(more excerpts):

 

And the research, from the banking giant Lloyds, reveals the number of people able to fork out £1million or more on a home is rocketing.

Last year, 7,185 people spent this amount on a property, equal to around 20 people every day, including weekends.

This is more than 50 per cent higher than the previous year and the fastest rise in four years, a sign of the resilience of the property market during a recession and a fragile recovery.

. . .

Of the total number of £1million or more sales, an astonishing 125 homes were sold for £5million or more.

The research shows that London dominates the list of properties in a capital where only the well-paid, the independently wealthy or those with rich parents can afford to buy.\

 

Last year, there were 4,299 homes bought for £1million or more in London, but only six in Wales and 13 in the North East

. . .

It comes as the tax bill facing anybody buying a home for more than £1million has never been higher.

Stamp duty used to be charged at four per cent at this price, but it was increased to five per cent earlier this month.

 

The research is based on the number of homes which Lloyds estimates are valued at £1million or more, but ignores the size of the mortgage on the property.

 

Read more: http://www.dailymail.co.uk/news/article-1382561/Britain-185-000-property-millionaires--rising-fast.html#ixzz1LGWM5clr

 

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(this other article could be more useful in discerning the direction of prices):

 

More...

Number of houses for sale up by 25% as owners put 'realistic' values on their homes

 

The average estate agent branch had 70 properties on its books in February, up from just 56 a year earlier, according to the National Association of Estate Agents (NAEA).

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Don't you love the way they count a "property millionaire" - based on the value of the property, not the equity in it.

 

"We were going to be, to put it bluntly, stuffed. The reason we were saved was the drop in interest rates," Fergus says.

"We recognise a lot of people are upset that we own so many properties. Some people say no one should have more than one property, but I thought communism was out of favour.

 

http://www.guardian.co.uk/money/2010/mar/06/buy-to-let-fergus-judith-wilson

 

Too fat to fail; the lender was going down because of them alone. The lender was iirc bailed by the tax payer. Tax payer 'owns' the properties. Ferg & Jude pocket any profit after new much lower payments. How much of that is housing benefit payments I wonder? So indirect multiple dole payments for the mighty pair. Thus for F&J communism is alive & well. What a great business model they have.

I'll be delighted to hear that I have this all wrong.

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http://www.guardian.co.uk/money/2010/mar/06/buy-to-let-fergus-judith-wilson

 

Too fat to fail; the lender was going down because of them alone. The lender was iirc bailed by the tax payer. Tax payer 'owns' the properties. Ferg & Jude pocket any profit after new much lower payments. How much of that is housing benefit payments I wonder? So indirect multiple dole payments for the mighty pair. Thus for F&J communism is alive & well. What a great business model they have.

I'll be delighted to hear that I have this all wrong.

Why the bank doesn't take full control, or at least 80-90% ownership - or an option to do so - in cases like this, is a mystery to me. (we did a much better job when we were sorting out troubled shipping loans, all those years ago.)

 

The question to ask: What value do deadbeat borrowers add?

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What value do deadbeat borrowers add?

 

That must be a rhetorical question Bubb, as I thought you had completed your study of the size of their egos after your visits to UK property landlord sites? :rolleyes:

 

(talking of which I have found some reinterpretations on soul level. I just have to overcome my hesitation to post them!)

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That must be a rhetorical question Bubb, as I thought you had completed your study of the size of their egos after your visits to UK property landlord sites? :rolleyes:

 

(talking of which I have found some reinterpretations on soul level. I just have to overcome my hesitation to post them!)

Comedy?

Tragedy?

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Britain Has 185,000 Property Millionaires - And Rising Fast

 

The average estate agent branch had 70 properties on its books in February, up from just 56 a year earlier, according to the National Association of Estate Agents (NAEA).

It's REALLY QUITE EASY - don't you know ?!

 

Just pay a little money for a seminar, and follow these simple instructions...

 

Professional investors are now busy snapping up some incredible property deals, using their secret techniques, which usually involve using little or none of their own money.

 

Their unique methods were finally revealed at a special “Property Millionaires Seminar” held over two days in London. If you missed out on this,

don’t worry, as I’ve got some great news for you…

 

…I can bring the event to you in the comfort of your own home.

 

In over 10 hours of live recording, the UK’s leading property experts reveal their top tips and strategies and show you how you can create an income of over £7,325.00 per month and retire within the next 5 years.

 

/more: http://www.ukpropertymillionaires.co.uk/

 

Practically a "snap" - We can put the UK "back on the right path" ... by following these ideas and all building BTL empires. (haha)

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Practically a "snap" - we can put the UK "back on the right path" ... by following these ideas and all building BTL empires.

BANKS ARE DOING RESEARCH to see "where they are"...

 

Revealed – where the UK’s property millionaires live

 

Mar 24 2011

The number of millionaires in the UK is rising – and is expected to grow by a third by 2020.

 

Around 619,000 millionaires live in the UK – with 86,000 of them worth more than £5 million.

 

The figures include landlord property, like buy to let portfolios.

 

The National Lottery has created 2,500 of these millionaires.

 

Barclays Wealth, part of Barclays Bank, released the figures in a survey.

 

Millionaire-300x251.jpg

 

Research revealed the number of millionaires is recovering from the downturn after slumping to 528,000 in 2008.

 

The report also maps wealth across the UK for the first time, revealing where millionaires live by region.

 

Most (46%) live in London and the South East, while the Midlands is the second wealthiest region with 92,000 millionaires. Poorest is the North East with 14,000 millionaires.

 

“Despite one of the deepest recessions ever experienced by this country, these findings indicate that wealth creation is starting to recover and this trend is set to continue at a steady pace.

 

“We are hopeful that this will contribute to growth in the wider economy and help boost regional expansion in the coming years,” said David Semaya, Head of UK and Ireland Private Bank at Barclays Wealth.

 

“Even with lingering uncertainty in this new economic landscape, there are indications that confidence is returning across the regions and that an improvement in investment conditions will be one factor encouraging entrepreneurs to look at how they can grow their businesses or restructure them. Our challenge now is to help them navigate this changing environment.”

 

/source: http://www.property118.com/index.php/where-millionaires-liv/

 

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REMEMBER, many are "becoming millionaires" without using any of their own money.

And the funny thing is, banks want to locate these clever entrepreneurs, who are "bring the UK economy back to life"

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Millionaire-300x251.jpg

Research revealed the number of millionaires is recovering from the downturn after slumping to 528,000 in 2008.

eastsussex.jpg

 

Change in number of property millionaires in Britain

 

Number of PROPERTY MILLIONAIRES

 

Region======= (Dec.10) : (Dec.09) : % Chg.

East of England : 018,454 : 016,068 : 14.90%

S. E. England... : 056,026 : 050,066 : 11.90%

London............. : 123,236 : 110,890 : 11.10%

S. W. England.. : 009,357 : 008,953 : +4.50%

Scotland.......... : 006,062 : 007,023 : -13.70%

East Midlands.. : 001,634 : 001,927 : -15.20%

West Midlands. : 003,393 : 004,942 : -31.30%

N. W. England.. : 004,746 : 007,354 : -35.50%

N. E. England.. : 001,698 : 002,762 : -38.50%

Wales............. : 000,578 : 001,129 : -48.80%

Yorks.&Humber: 001,159 : 002,420 : -52.10%

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Total BRITAIN = 226,344 : 213,533 : + 6.00%

 

/source: http://blog.zoopla.co.uk/2011/01/07/number-of-property-millionaires-in-britan-climbs-6-in-2010/

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DON'T LIKE THE LETTER from your banking regulator?

 

It thinks your bank is "lending to much... to those who cannot afford it"?

 

Then why not do what one big international bank did*...

 

HIDE THE LETTER in the closet. (so your auditors cannot find it)

 

Does that make them "closet lenders" ?

Maybe this is the sort of bank that the UK likes right now.

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*Corporate News

Deutsche Bank (DB: 43.25, -0.94, -2.14%) is being sued by U.S. regulators over "reckless" lending practices, according to a report by The Wall Street Journal.

 

Read more: http://www.foxbusiness.com/markets/2011/05/03/stock-futures-slip/#ixzz1LJIXQJm3

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