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Friggin’ idiot

Furthermore, some lenders will allow landlords with income of £25,000 to build up a portfolio of £1m to enable them to house others, but may only be prepared to give them £100,000 to house themselves. On any metric that is unfair, unsuitable and – as we are now seeing – systemically unstable

The rent from the house provides the income to service the loan.

How do you think a business buys machinery? By proving that it can pay for the machine even if it doesn’t use it?

A commercial landlord proves it can pay for the building without tenants?

10 thoughts on “Friggin’ idiot”

  1. Off topic but congrats to ‘Ray Pewgee’ who managed to get this through Spud’s censorship in reply to a ranting piece about how the US Supreme Court’s decision that judging people by the colour of their skin wasn’t a good idea was ‘racist’.

    “The black American economist Tom Sowell famously said ‘Racism is not dead, but it is on life support — kept alive by politicians, race hustlers and people who get a sense of superiority by denouncing others as “racists.””

  2. How do you think a business buys machinery? By proving that it can pay for the machine even if it doesn’t use it?
    I’d say there’s something very different there. The machinery is unlikely to be the sum total of the business. In fact you’d be very unlikely to get a loan if it was.
    BTL is basically just profiting from ownership of an asset. And loans a way of leveraging capital to do so. No doubt very attractive to banks. But we all know where the risk is going.

  3. You think how BTL has actually been funded in an era of artificially low interest rates. By stealing the money of savers.

  4. OT. Another frigging idiot.
    The writer’s comparing the UK with Canada. And suggesting the UK follow Justin Trudeau’s ultra-woke policies. “A dose of ultra-liberal realism could solve the UK’s stagnation” Really? Canada. An enormous resource rich country has one of the lowest population densities of modern industrial nations. Maybe the question should be; not why is the UK not doing as well as Canada. But why isn’t Canada doing better? Justin Trudeau’s policies?

  5. Canada. A country where the government froze the bank accounts of citizens who had the temerity to protest its policies.

    Increasingly it seems that having lost the example of East Germany, the populace of the “west” now allow their governments to adopt its malevolent practices

  6. Bloke in the Fourth Reich

    The owner occupier can fund the loan repayments using the money not being spent on rent?

    Radical thought, I know.

  7. Bloke in the Fourth Reich

    The idiocy of Trudeau is that Canada would benefit massively from global warming.

  8. BiFR
    Trudeau’s idiocy knows no bounds. Think of him as the political Richard Murphy, but with better hair and less understanding.

  9. Still off topic but on the topic of the US Supreme Court’s decision to rule admissions policies based – in part – on race.

    I stumbled on the court’s written decision. It’s fascinating and brilliant reading. I’d recommend tracking it down. A huge takeaway is that it was an American-Asian body that bought the case and so the racism accusations against the decision are absurd. One startling statistic. If you were a black American in the 4th decile of academic tests scores, you had a 12.8% chance of admission to Harvard. If you were an Asian American in the first decile you had a 12.7% chance of admission.

    Best of all in the judgement is the way it eviserates the dissenting judge’s opposing arguments. It pulls no punches, pointing out repeated cherry picking of parts of earlier judgements and the ignoring of others.

    I paraphrase here part of the judgement.

    While the dissenting argument would not allow discrimination against black and Hispanic students, it allows it against others. The Court is supposed to choose which races can benefit. Past decisions have made clear such discrimination is inherently wrong. “It depends” says the dissent.

    “That is a remarkable view of the judicial view. Remarkably wrong”

    Recommended reading.

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