Russethouse Posted May 31, 2006 Share Posted May 31, 2006 I think the program is called 'I want it now' In this case a couple had decided to buy a holiday home in France with a budget (I think) of £100,000. It was solely for their use, possibly for only 5 weeks of the year.There was a fairly short section about their trip, a look at a few houses and then back to the Uk where an advisor from VEF, a laywer (was it Camerons ?) and a financial person all said their bit and pointed out various pitfalls.The most interesting thing for me was the way the financial person worked out that their holiday home was going to cost them in excess of £11,000 per year, for 20 years, where as if they bought a property in the UK they could have an income of £6000 per year and go where they liked for holidays with the extra money.They gave up on the property they had picked but said they were going to visit another area of France..........or maybe Spain ?Anyone else see it? Link to comment Share on other sites More sharing options...
Gastines Posted May 31, 2006 Share Posted May 31, 2006 Yes, we watched it to see what pitfalls they would point out. The one thing that amazed, was that they were buying with borrowed capital. If you had spare money it might be a bit better idea!We did note that the financial advisor pointed out the the Budget airline were,at that time, charging £1000 for the family trip!Viewing the properties that they did, it appears that they didn't advise the Immo's,all English, exactly what they wanted and they might have saved themselves and the Immo's, some time and expenses.Regards. B&B St. Malo Link to comment Share on other sites More sharing options...
Chesnelay Posted May 31, 2006 Share Posted May 31, 2006 Yes, watched the same as yourself - the fact that they were going to have to take out a mortgage on the holiday home seemed daft really - thats what I call an expensive holiday option - plus choosing a location where the only real option is to fly the whole family over and then have to rent a vehicle to get about.Takes all sorts[:D] Link to comment Share on other sites More sharing options...
Nick Trollope Posted May 31, 2006 Share Posted May 31, 2006 I understood that they were going to remortgage their UK house to pay the £30,000 deposit. Then, I guess, take out another mortgage for the other 70K. Oh dear. He would definately need a pay rise... Link to comment Share on other sites More sharing options...
PeterG Posted May 31, 2006 Share Posted May 31, 2006 Don't take it all too serious............. It's just another made up TV programme.As far as the financial adviser was concerned, she forgot to subtrack the tax they would have to pay on the £6600 income. If this, along with other income, took them to higher rate tax they would only receive £3960 per annum. Along with this they would have they onerous task of the upkeep on two rented properties, as landlords.They only mention the bits that will make a " sensational" TV programme. It's the same old story bad news is good news. Link to comment Share on other sites More sharing options...
SaligoBay Posted May 31, 2006 Share Posted May 31, 2006 [quote user="PeterG"]Along with this they would have they onerous task of the upkeep on two rented properties, as landlords.[/quote]In my experience as a tenant, being a landlord in France is not necessarily an onerous task! [:)] Link to comment Share on other sites More sharing options...
Lizzie15 Posted May 31, 2006 Share Posted May 31, 2006 Bit of a rubbishy programme really !! They completely forgot to add that they would actaully be getting 5 sep holidays each year, versus their normal 2 weeks by buying to let and using the profit to pay for the holiday,plus the house is there for friends/ family. Buying with a mortgage was a surprise but totally their choice of course. Wear and tear on 2 buy to lets would cost a bit too !! [:@][:$] Link to comment Share on other sites More sharing options...
Gluestick Posted May 31, 2006 Share Posted May 31, 2006 Muppet TV as far as I am concerned.Sadly, the programme focused only on what the would-be buyers thought and gave them little real help and advice.At present, of course, UK TV is awash with property programmes and far too much rubbish about buy-to-let. Thanks Sarah Beaney et al.............................Personally, I would very much question the "advice" given by the "Expert" consultant. The buy-to-let market is very soft in the South, now and rent rolls are actually falling, as more and more people buy-in to the dream. I know from a chum's portfolio, that if we had invested the same capital sum in the North, we would be earning just over twice the gross revenue.If (when) UK interest rates rise, then just like the early 70s and late 80s/90s, a whole lot of over-borrowed investment property will be for sale or foreclosed. As has already been pointed out, there are a number of hidden costs and problems on the downside to being a landlord; none of these were mentioned. As far as the "Expert" was concerned, it was all assured forward profit! Huh!And, of course, if (when) the UK property bubble finally bursts (just like early 70s and late 80s/90s), a whole lot of buy-to-let property will be liquididated and leave an awesome debt overhang; particularly where people have leveraged and re-leveraged their portfolio to buy even more at even larger inflated prices!Anyone else also pick up on the lawyer's fees estimate? Bit high, I thought.How many forum members actually had a full structural survey before buying? How many French (older) houses would pass?At the end of the day, where people carry out zero research, cannot speak a word of the language and have ambitions based on rose coloured glasses, tears are bound to follow. Link to comment Share on other sites More sharing options...
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