Property Crash? Andy Shaw comments…
by Nicola Cairncross on March 30, 2008
in Money Gym | Success
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. ……
|
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. |
