Passive Investments Liquidation | Further Money Gym Statement

Last week the news broke about Passive Investments going into liquidation and Greg Ballard and Andy Shaw facing bankruptcy proceedings and one of the most difficult phone calls I had to make was the one telling my much-touring singing sister, Heather, about the news.   In my journey as a wealth coach, and the subsequent journey of creating and building The Money Gym, I don’t think I can remember such a difficult and horrid week.

As you know, I regard Andy and Greg as friends of mine, and they helped me so much, both practically and emotionally, when I was going through the difficult time with trying to sell the hotel, after the planning permission for change of use was refused.   I really could not believe that they had done anything wrong.

While all of my friends and family are grownups and able to do their own due diligence and make their own decisions, I still feel responsible that I have introduced them – along with my treasured clients – to something that I really believed at the time was good, even great, but now turns out not to be.

As more and more information comes to light about Passive Investments and the way they have treated some people, I am starting to feel very bad indeed about having promoted them, but I can only say that I (and then the Money Gym) did that in good faith, and the moment we started to suspect that they might not be delivering on the customer service in the way we would have liked, based on Judith’s personal experience as a client, we ceased to do so.

We were paid commission on referrals by Passive Investments. However, I can say, hand on heart, we never introduced Passive to anyone that we felt would not benefit from their service, and both Judith and I often actively talked some people out of it.   If an investment opportunity does not feel right in every way to our clients, we discourage them from proceeding with it.   We can honestly say that we have never introduced anything to our clients for the purposes of securing our introduction fee only; that is a bonus only.

Judith has educated me, over the weekend, about how Passive should have handled the client fees and how it seems they may not have complied with proper accounting procedures.

With hindsight, the statement we released last week was written hastily in response to the discussions on our private forum and comments on the blog and came from our hearts, but perhaps we should have waited for a few days before issuing it while the full story filtered back to us.

My position has always been that I (and The Money Gym) would only promote something that either I, or someone very close to me, had invested our own money in and were happy with.  The service that Passive offered was so attractive that nearly all my friends and family jumped on board, followed by a lot of our clients and subscribers.  However, in light of the developments last week, I feel that The Money Gym will be reviewing it’s stance on introducing anyone or anything at all, let alone quite so wholeheartedly, in the future.

I apologise unreservedly for my part in bringing the services of Passive Investments to the attention of so many people.

Nicola Cairncross

Note:  James Tickell, director of Portland Business & Financial Solutions, the insolvency practice chosen to disband the Passive Investments empire, says the matrix of firms will formally enter liquidation on 11 December.

Contact:  London Office, 43 Pall Mall, London, SW1Y 5JG, Tel: 020 7925 2651 / Fax: 020 7925 2652 / Office email: post@portbfs.co.uk

Why I Have Sent Tudor Equity A Cheque For £2.5k With A Smile On My Face by Clare Hanbury

Money Gym Subscriber Clare Hanbury-Leu says: The relationship with Passive Investments was built on trust. I have trusted them to find the right properties – to renovate them to a high standard – to rent them out as quick as they can – to advise on the best mortgage deal – to re-mortgage and turn things around as soon as they can etc.

Most of us must be happy to accept risk to put so much trust into the hands of people we don’t know well. My friends, my financial adviser, my partner all felt nervous of the arrangement and advised against it but I pursued it – uncharacteristically ignoring their advice. My instinct felt strong on this one.

I have been involved with Passive Investments for 3 years and have two properties. The rental on one of these was a little slow in coming and the turnaround on the first mortgage again a little slow. I had one property fall through and lost a bit of money on legal costs and survey etc. All this said, I have been delighted with the results of the investments to date and delighted with every contact I have had with the company. I have felt totally supported by them. I like having them in my life. Every glitch, every query has been dealt with quickly, politely, humorously.  I have been happy to talk to two potential clients and chat through my experiences with them.

I have had some contact with Greg in the last few months and found him open and straightforward. He is an ideal business partner. Even prior to my contact with him there was no doubt in my mind that these are very tough times for the company with its peculiar business model that clients pay when we have done well and not until then! I am staggered that he has stuck at it as long as he has with no salary. I know he has worked for the future of his own properties (which is good thing) but he has also worked free for me too!

When the letter came though last week, the trust I had placed in them suddenly felt foolish. However after a few minutes indulging in panic…most of what I felt was what a WASTE of the talent and expertise that is this team. I felt upset that I would not complete the portfolio. I felt nervous about having to deal with the properties on my own and I felt frustrated to have to do so when they have a good system in place. I have a property in London too which I manage myself and would much rather it was in Passive’s care! Then I read that Steve wanted to keep things going with the team there and I was keen to know how I could help.

So…..there is this 2.5k (which is a LOAN) to help Tudor Equity capitalise – this is money that the very same advisers, partners friends etc will describe as throwing good money after bad – but I don’t think so. From a numbers point of view…Because the 15K back payment /property has been reduced to 10K this means that by the end of completing the portfolio of 5 properties, there will be a SAVING to me of 25K from the original agreement AND I’ll get the 2.5 loan back.

Hmnnn why is this a difficult one to agree to? I guess that it’s difficult because of trust. Do I trust them again? The way I see it is that they have ALREADY done so much for me re: my properties that they have ‘earned’ this AND if the team don’t think they can make a go of it because there are not enough of us signed up – we’ll get the money back anyway…and if they DO think they can make a go of it – well I am willing to give them an opportunity to do so.

My cheque is on its way to them with a smile on my face. I really want to help keep this business going and I am grateful to them for giving us a chance. I have not yet spoken to anyone outside of Passive and I have not looked on the internet to read what is being said so my words are unaffected by others’ opinions.

I don’t see any point in NOT supporting the team now. I feel the market is not only stabilising but strengthening – I think we all know this and what we also know is that we have a dedicated team and they will be even more so if this can go ahead. I really hope there are enough of us to give them a chance to navigate a path to creating a robust business again. I’m sure they can do it. The banks won’t help but I will.

Clare Hanbury B.Ed (Cambridge) MSc (London) MA (London)
International Development Consultant ClareHanbury.com

Passive Investments In Liquidation | The Money Gym

Read The Latest Money Gym Statement Here>>>>

Nicola says: Following the shocking news that Passive Investments have gone into liquidation, and that Andy Shaw and Greg Ballard are being made bankrupt by one of their larger creditors, many people are asking us to comment, both on the blog and in our private google group.

When I first met Greg and Andy, back in 2004 I think it was, they struck me as two highly intelligent, funny, energetic, successful guys, who had been in traditional business before, who thought very differently to many people and who had created a FANTASTIC model for investing in property. They were also helping their friends and family invest in the same way, on a fairly small scale, as well as building their own portfolios which numbered about 150 properties in those days.

I immediately knew that our Money Gym clients would love to meet them and hear about this method of investing in property, getting your money back out and going again, as the need to leave money in a property was frustrating many of our clients. We organised an Open Day at my hotel, The Acacia, and many of the clients who were there wanted Greg & Andy to do it for them, like they were doing for their nearest and dearest. Greg and Andy put together an offering, and I spread the word into the Money Gym group of clients and subscribers.

I introduced them to Gill Fielding, my first wealth mentor, who immediately invested with them, ditto Maria Davies. Gill then started presenting this opportunity for them. When Gill could no longer present, Maria Davies took over for a while.

Everyone loved the concept, especially busy professionals and people who wanted to invest in property but didn’t have the first clue about how to go about it. Most people really took to Greg and Andy too, as they shared their knowledge freely, helping many, many people make money along the way. I particularly remember one lunch where they helped a Money Gym client to negotiate a purchase, making him an extra £80,000 along the way. They then took him under their wing and mentored him for a while in his own property deals.

Pretty soon, they were so swamped with people wanting them to invest for them, that they had to create a company to handle the demand. Passive Investments was born.

We are also aware that they then developed a “private investor” scheme whereby people with money sitting idle in a low interest bank account lent the money to Greg and Andy personally for bigger property projects, and because I was not one of those people, I didn’t find out any further details and they never sought a public platform for that opportunity though the Money Gym.

My sister Sarah and brother-in-law Nick invested, my sister Heather invested, Steve Watson and I both bought a “place” each too. I would have happily bought more “places” if I could. The company still owe us for some of the second “place” so my family and I are all out of pocket as well as those of our clients who chose to invest alongside us.

One ray of hope is that those of our clients and family who have properties may make up the monies they have lost (by having paid a fee for a service that now won’t be delivered) AND may ultimately end up better off, due to now not having to pay Passive the agreed “back end” fee on the eventual refinancing of their properties.

Judith Morgan, ex-accountant, Money Gym client and now our business partner, invested the entirety of her inheritance from her Mother into her two “places”. This should have meant ten properties in the fullness of time but she only has three. Her portfolio could not be grown once it became impossible to achieve mortgages or re-finance.

I have heard some horrible stories going around about things that Greg and Andy are supposed to have said and done and while I have no personal knowledge of those things, I’m working on the “innocent ‘till proven guilty” theory. I have always liked and respected Andy and Greg, and I feel sure that most of the rumours are unfounded.

Only yesterday Andy’s website was apparently hacked into, allegedly by someone known to the company, and a personal message to members and investors was changed beyond all recognition to cast the worst possible light on Andy. Here is a link to Andy’s correct personal statement.   Remember to click on the Free User button and then the blue Download button.

We have also been re-educating our clients during the credit crunch to take a more active role in managing ALL their investments, including this one which was originally intended to be passive.  You might want to read about one of our clients (who is not alone by any means) who feels that she will go forward with Tudor Equity, the company that some of the management team is putting together to take the portfolios forward.

Feel free to comment on the blog here but be aware that we reserve the right not to publish any comments that are potentially libellous or are simple repeating content from other people’s blogs or emails.

Later Note: James Tickell, director of Portland Business & Financial Solutions, the insolvency practice chosen to disband the Passive Investments empire, says the matrix of firms will formally enter liquidation on 11 December.

Contact:  London Office, 43 Pall Mall, London, SW1Y 5JG, Tel: 020 7925 2651 / Fax: 020 7925 2652 / Office email: post@portbfs.co.uk

Banks – Last Place To Put Your Money!

It’s a short one today but full of great stuff! Just three quick things….time to read 5 mins!

1.  Wealth Creation – Money Gym TV

If you haven’t checked out my live shows yet, you can view todays show and the archives at http://www.MoneyGym.tv – my last five shows have won a star rating!  Today I cover being a world class leader, and would you bother if you won the lottery?, time management, business planning, where I’ve been and who I’ve seen….very sore throat but I battled on!

2.  Thinking About 2008 & What You Want To Achieve In 2009

I’ve been mulling over a lot recently about what makes the difference between those who make it and those who don’t.  I’ve been emailing you and blogging about the secrets of success and will continue to do so.  But one thing I know, if you give up you definately 100% won’t make it.  So if you are feeling discouraged, why not try again today, because you can always give up again tomorrow!

3.  Money Gym Gold – Going…Going…

THe registrations are hotting up for Money Gym Gold before the fee increase deadline at midnight 3rd January.  We have even had an enquiry from one of my internet mentoring clients from last year, who lives overseas and who knows we video all the workshops now, so she won’t have to fly over for all of them.  If you want to get your hands on the “membership bootcamp home study course” bonus, worth £1750, and discover how to create a membership site of your very own, you better go check it out at http://www.themoneygym.com/gold as only the first 20 new Golds get that!

That’s it from me today….something for everyone.

Now I’m off to watch Steve and Phoebe bake 60 chocolate cookies for her to wrap and give her friends….yum.

Warm regards

Nicola

Is A Property Boom The Death Of Entrepreneurialism?

This week I posted a blog posting picked up from another site, about whether the property boom had meant the death of entrepreneurialis

Read it here >>

The author seemed to be putting forward the view that entrepreneurs had been getting lazy and flocking to the property market – they put their premise forward thusly…

“The net effect of this (property) boom has been one where the incentive to become truly entrepreneurial was significantly reduced – why try and create a new product or service if there was a guaranteed high return from property development? Similarly, from an investment point of view, why consider any other investment opportunity if there was a perceived guaranteed high return from property development?”

Interesting how they slipped that “perceived” in the second sentance eh?  Do they mean that the return being gurarnetted

Let me give you a bit of context for my fascination for this….

In 2003 I bought my hotel The Acacia.  Property investment and business in one I thought.  A big TICK x 2 on the Lanes of The Wealth Highway.

I created an E-Myth’d business, one which would run without me, whereas I could market the place from anywhere in the world. Which was based in a building that would appreciate in value.

Then I met Andy Shaw and Greg Ballard, no strangers to business or property themselves.  They started to come to a lot of our Money Gym events at The Acacia and we used to spend time in the breaks in the back garden, because some of their team smoked in those days, and we could talk to Steve (the Manager / Chef at the time) through the kitchen window while he prepared his latest sumptuious feast for the clients.

I’ll never forget the day, when one of them uttered the following immortal words ….

“Of course, this place will never make you a good enough return in terms of profit, to make up for how much effort, worry and risk you have put into this place”.

They were not being unkind, just honest, and they knew what they were talking about, because they had had a big business;  two factories, over 100 staff who got up in the morning to cause them grief, over 100 pieces of equipment and a fleet of vans that did likewise.  They realised that, in their first property deal, they had made more profit than they had made in half a year in their business.

So they sold the business and went into property.

They suggested I sell the hotel business and concentrated on the virtually virtual coaching company The Money Gym, my internet marketing activities and property investing – but focusing on simple little one bedroom flats.

I was in a hurry to get out now, becuase the scales had fallen from my eyes in terms of the best use of my time and efforts.

Then I discovered the other problem – that Andy and Greg had also experienced – nobody wanted to buy my business when I wanted to sell it.  Or perhaps I didn’t know how to go about selling a hotel business properly.

And there were other people’s jobs depending on me – you can’t just walk away from a business if there are othere people working in it – your employees.  You have a responsibility.

Grim.

Anyway, with time it all resolved itself – not easy but we got there.

Because at the end of the day, as I never tire of saying, wealth creation is a simple matter of deciding where your best return on investment is, and putting your money, time (which is money) and efforts there. If you don’t know how to work out your return on investment (ROI) here’s one of my previous articles on the subject, which tells you how to work it out, and how to compare different opportunities, and make chalk like cheese for the purpose of comparing different opportunities.

Aye, but, here’s the rub.

We all have our personalities and emotions to deal with and that can muddy the waters.

We find that our Money Gym Gold clients

have distinct preferences about which one or two Lanes of the Wealth Highway they want to work with first.

Analytical people like the idea of the Stockmarket, women are always keen on property and often have a business idea (or existing business / self employed venture going already) while techie and marketing types are drawn towards the internet Lane.

The skill in the early days, as their coach, is in finding out if that is, indeed, their fastest route to the money, as Judith would say.

Because our main goal in The Money Gym is that we want them to recoup their investment as quickly as possible, then go on to create oodles of cash so that they can re-invest it and create more cash, and re-invest it………..you get the idea.

And here is where I get back to the point – hurrah!

We want them to do it as quickly and easily, and effortlessly as possible.

Because why would you want to flog your guts out creating something new, and trying to bring it to market, when you can make pots of cash from following a tried and tested system, a step by step process, one that is proven to work, with colleagues alongside you, and mentors who have gone before, to hold your hand and stop you making painful and costly mistakes?

Why would you go it alone?

I suspect the article was written by a “Creator” in Roger Hamilton’s “Wealth Dynamics” and as one myself (Creator / Star profile moi!) I can almost sympathise.

Almost, because I wasted 38 painful, poor years, trying to create a new business, and bring it to market.

I now harness my creativity into making money out of thin air, created great win/win deals, helping others to create wealth, and finding new ways to make our marketing better.

Who said wealth creation had to be hard work?

And unless your business can create a better return than the property market, why would you go there?  Current blips notwithstanding, the property market appreciates at an average of 10% per annum and the more sophisticated investors create an infinity return on their investment.

Most businesses don’t even break even.

Now, I can hear howls of protest from Judith in the distance (takes a while for sound to travel from Streatham to Shoreham) so I will finish up by saying that we are not anti-business in The Money Gym.

But we are anti-hard work.

So bring us your business idea and we will help you shape it into something that will run happily alongside your property empire building.  We will help you harness the power of the internet to market your business automatically, and then, only when you have nothing to do, will we let you look at the stockmarket.

Unless you want to start there, of course!

Client led coaching, with laser like focus, with a right old boot up the bum, that’s The Money Gym.

Come join us!

http://www.TheMoneyGym.com/Gold

PROMOTION:

Talking of whom, one of the supermodels of the property investing world, Greg Ballard, will be joining us tomorrow to tell us how to get an infinity return on your investment.

Then I will be sharing how to make money from property without buying any.

Then Maria Davies, another star of the property world, will be showing us what she’s buying, and sharing how to buy a luxury holiday home in the Caribbean AND create a monthly income, for just £1000.

http://www.TheMoneyGym.com/MGPresents/property2.htm

Property: Top 3 Ways?

When I first started the Money Gym, and wrote the “Financial Intelligence 101″ tips, that grew into The Money Gym ebook, one of the most popular sections was the Property Investing Section.  Everyone wanted to know about investing in, and making money from property.

In the early days, when we used to host the Money Gym workshops at The Acacia, my much loved boutique hotel and my latest venture into property investing, we used to cover “The Top 10 Ways To Make Money In Property” and we used to simply tell people about them, they used to go off and investigate the one they liked the sound of, then we would coach them from there.

However, one day, a couple of guys came along who blew most of our “Top 10″ out of the water. 

Out of “Top 10 Ways To Make Money In Property” only three of them remain.  Which ones?  Aha, you will have to wait for the next few days to find out that!

After we heard about how these guys invested in property, we simply couldn’t, in all good conscience, just tell folks how they COULD invest in property, but we felt we then had to share how we felt people SHOULD invest in property.

Now this went right against all accepted coaching law and wisdom, I can tell you!

But hey ho!  Wealth coaching has always been different – a mix of training, mentoring and coaching, rather than pure coaching itself.

At The Money Gym, we aim to save you time, money, and stop you making expensive mistakes.

Mistakes like I made with buying that hotel in the first place.  If these two guys, my mates Greg and Andy, had been around in 2003, there is NO WAY they would have let me buy it.  They would have stopped me making THAT half million pound mistake.

Side note:  You will see in this week’s ezine, I talk about the difference between “failure” and a “mistake” and it’s an important distinction to make if you are an entrepreneur.  Essentially, a failure is something that can bury you but you can learn from your mistakes.

That hotel was a mistake – some would definately see it as a failure – but I choose now to see it as a mistake.  A very large one true….. 

One that taught me a VERY LARGE LESSON!  In fact, SEVERAL very large lessons.

I will never forget the moment in the garden of The Acacia, when Greg or Andy uttered the immortal words that made me realise that buying it had been a mistake and told me why.

1.  This hotel will never make you the amount of profit that would make all the work you put into it, worth it.
2.  You have a lot of your own money in this business and you will struggle to ever get it out.
3.  When you have had enough and you do want to sell it, nobody will buy it, unless you find someone as daft as you were, to buy it in the first place.

Hmmmmm…..

They like straight talking, those two.  And that is one of the things I most value about Greg & Andy. So many people won’t tell you what you need to hear.  Nobody around me in those days did, that’s for sure.  Hence the mistakes.

So, five years on, here we are, still making mistakes but not so many, and certainly not failing, and together with Steve and Judith, two more straight talkers, they are still two of my closest friends and mentors.  Whenever I want some advice about business and life, I go straight to Greg, and to Andy for property market / business marketing / creative / internet input.

So you can imagine how thrilled I am that Greg still comes to London, to present for The Money Gym on property investing.

I can’t imagine how much longer he will do that, as we are pretty much the only presenting he does outside their own Open Days.

He’s coming to the Southwark Rose on 14th June and really, you should be there. 

* If you have questions about the current property market, you should be there.

* If you have questions about your business proposition, you should be there.

* If you just want to see a down to earth, authentic, funny, FANTASTIC speaker, you should be there.

* If you want to recharge your wealth creation batteries, and hang out with some like minded people, you should be there.

That’s five “shoulds” in five lines, I’m about to get struck off the Eurocoach List!

Book your place here – still some Early Birds left as I’m late promoting this due to half term.

http://www.TheMoneyGym.com/MGPresents/property2.htm

See you there!

Nicola

p.s.  Greg always sells out fast so get your space booked now.

Despair Of Ever Investing In Property?

This post was written before the demise of Passive Investments.  Read The Latest Money Gym Statement Here>>>>

Every so often a wealth creation concept or different way of doing things comes along, that just blows my mind.

A few years ago, when I came across the way my mates Greg & Andy invest in property, my head nearly exploded with excitement, and I couldn’t wait to share their ideas with my readers.

However, Greg & Andy’s way of doing things does depend on three things

1.  A good credit rating
2.  A pot of cash to use over and over again for deposits / refurb
3.  Ability to get a mortgage (lots of “buy to let” mortgages still ask for proof of earnings)

Now this is great for a large majority of our Money Gym members and hundreds of them have availed themselves of Greg & Andy’s services, via Passive Investments or learned how to do it themselves, via Andy’s book.

BUT………..

I knew there was about 30% of our subscribers who couldn’t “do property” the Passive way, or even buy their own home, due to

1.  No pot of cash
2.  No credit rating
3.  No proof of earnings

Now, I know that there are several other ways to make money from property, without having to buy any yourself, but sadly people just seem to give up at that point, and don’t go on learning about what makes a good property deal, if they haven’t got even one of the above three things in place.

So you can imagine how delighted I was when I met David Lee, via Tamkin Riaz, at the last World Internet Summit.  I really think that the heavens were conspiring that night, because I had met David several times before, but never really fully grasped what he did.

On this occasion, I ended up sitting next to him, his wife and son, in the pub, and out of politeness really, asked him again to tell me what he does…..an hour or so later, I still didn’t really get it, but dimly grasped enough to realise that it was a totally different way of making money from property, and to tell Judith we should invite David to speak for The Money Gym.

In January David did a VERY powerful presentation – and he would be the first to admit he’s quite new to public speaking – and his concept and content blew us away.

Can you imagine being able to make money from property without needing a deposit, a mortgage or a good credit rating?  Where you are not competing with all the “below market value” boys, and where you are not only making big chunks of cash, but helping two sets of people?

Let me repeat that……where you are making what we in the Money Gym call “life changing sums of money” while helping two sets of people.

A geniune win/win/win situation.  It takes a bit of a mind-shift, a bit of a leap of faith, and access to some minor cojones to get started, but if you are open-minded and determined…….

I tell you now, this is dynamite stuff.  Judith and I both love it!

Several Money Gym clients signed up on the spot and we have all been working our way through the materials – the detailed “how to” workbook, the many hours of audio with real people, case studies, and student stories.  I have rarely seen a better put together home study course and the backup support from David is superb.

David is doing a presentation soon, and there will be a very special guest there – Rick Otton.

Rick is the guy who learned how to utilise this way of making money from property, firstly in the USA, then Australia, and he mentored David to make it work here.

I have no idea where Maidenhead is, but, if you have despaired of every becoming a property investor, but you want to be, I suggest you get your map out and make your way there pronto!

http://tinyurl.com/574rzb

Don’t delay, places are limited and David’s last events in Ealing and Manchester sold out very quickly.

Take action now and I personally promise you, you will be amazed!

http://tinyurl.com/574rzb

Wait To Buy Property? Or Buy Property & Wait?

Nicola says: I received an interesting email this week from one of our Money Gym members and I was intrigued enough to pass it onto our resident property gurus to get their feedback.  I would welcome comments on the blog on this one too, from you experienced property investors out there….just click the “comments” link at the bottom of this posting.

“Dear Nicola, I was talking recently to a dear friend who has until recently largely ignored property investing although she has always made money in her own home buy buying cheap, doing up beautifully, selling on and doing the process again.

I have a dilemma, in that, because she is my oldest friend and has seen me through many ups and downs, financially and otherwise, she largely discounts anything I say about money, budgeting, equity release, debt etc., which is both annoying and hilarious!  So, since I joined the Money Gym, I have tried not to get involved in talking about it all with her.

However, she has a new man in her life, who is quite keen on property property investing and so they are obsessed with property now, and they talk about all the time.  They are currently holding cash, tracking specific properties on spreadsheets, and waiting to invest on the South Coast.

I am thrilled about it all obviously because it will sort out their futures totally!

However, Y keeps talking about the market having dropped 15% in our area, (I agree that prices have slipped back a bit as people are panicking –but 15% ????!!!) and the so-called property crash coming which he feels very strongly will make prices slip another 10-15% in the next six to twelve months.

This will make a total devaluation in our local market of over 30% according to him – £54,000 off a flat originally valued at £180,000 – and I can’t believe that is right because I know from my Money Gym learnings that prices only went down by 3% overall in the UK, even in the worst crash we all remember, in the late 80’s / early 90’s.

Obviously I know that this means some areas rose, some fell but the average over the whole country was 3%.

Y & C keep saying, they don’t want to buy something for £150k which was on the market for £180k three months ago, if it’s going to slip back to £130k in the next few months.  They keep quoting examples like this although they haven’t talked to any vendors that I can tell -  just agents.

By the time they buy a property, a year or two will have gone by, and all my Money Gym training says that this is a mistake – as Andy Shaw says “You don’t wait to buy property, you buy property and wait”  but they are having none of that!!

My thoughts are that the property they are quoting at £180k was overvalued three months ago, and if it’s now being offered for £150k it’s probably a very motivated seller too, and it’s pretty unlikely to go much lower.I also feel that it’s not an indication that all properties at £180k are now selling for £150k and are then likely to go down to £130k.

However, I can’t seem to find the arguments for why they should just get on and BUY ONE!   I tried telling them that, “consistently in this country property rises by 10% per annum, more than 10% in the South East” and “every year you wait to buy a property of £150k you are losing £15k in appreciation by waiting a year….”

It’s been bothering me that I can’t counter their arguments for waiting, even though I feel instinctively there is something awry with this argument, and I wondered what all your thoughts are on the whole topic?”

Property Crash? Andy Shaw comments…

PASSIVE INVESTMENT UPDATE:

This post is an old one obviously but it gets a lot of traffic from the search engines.  The news that Passive Investments have gone into liquidation is shocking for everyone.  Read The Latest Money Gym Statement Here>>>>

The Post Previously Read:

I knew Andy Shaw wouldn’t be able to resist on the dreadful headlines about the property market for long, and I was not disappointed.  If you can’t believe a man who, with his partner Greg, has built up a property portfolio worth over £30 million, then who can you believe eh?  Andy says….

“I was doing some research the other day for our business Passive, and I was asked to find some research from a recognised professional that backed up my argument about the fact that the country is not over geared despite what the media says.

Well here’s quite a good one that I thought you’d like too -
http://www.guardian.co.uk/business/2008/jan/12/housingmarket.houseprices

Martin Ellis is the chief economist of Halifax and he is stating that the property market is now worth £4 trillion, which is three times the UK’s annual output. And it shows household debt at what is commonly thought to be a staggering £1.3 trillion.

Now I have been trying to say that for years but never got round to looking for the figures to back up what I was saying. So, really basically, if you look at the country as just a person, it is worth £4 trillion, and has £1.3 Trillion of debt

So our mortgage and household debt, cars, loans, credit cards, the lot, gears us as a whole to 33% of our equity.

Can you tell me what loan to value the banks consider virtually zero risk lending?

Well different banks view it in different ways. Allied Irish view 70% as virtually zero risk, while Nationwide view 65% as virtually zero risk. Some banks go down to as low as 50% before they view it as virtually zero risk. But we as a population are at 33%, which is well below the risk criteria of even the most conservative of banks.

What does this say to you about the way the media and the government view the extraordinary high levels of consumer debt? It says to me: scaremongering. ……

Read more at Andy’s site >>>>

Discover How Two Men Turned £10k On A Credit Card Into £37 million Plus, In The UK, In Just A Few Years….
	Our mate, Andy Shaw. Property Genius & Thoroughly Good Bloke!
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