The one that got away

Index

• Experience 1: The apartment
• Experience 2: The Weoley Castle Property
• Experience 3: The Willenhall Property
• Experience 4: The Crewe Property
• Analysis of the Property Market 2010 
• Analysis Update  
• The one that got away
• Repossession Report 2010: 36,400
• The Dangers of Investing Abroad

I saw a 3bed semi in a posh area advertised for £75K in a road where the most recent semi sold for £139K. Previous sales were £129K and £118K going backwards. In the forward direction, prices are going up. I mentioned this in a property forum and they shot me down in flames.
Whichever way you look at it, £75K is very cheap. I called the agent and he said that they need to see proof of funds - cash or Decision In Principle (DIP) - before I can view it. So I called my broker who said that she'll provide me with a DIP within 24 hours. This came and went and nothing. I called another broker and within 2 hours, he emailed a letter stating that I qualify for £100K mortgage and can complete within 28 days. The next day, the first broker emailed me a DIP.

I called the agent to arrange a viewing now that I have a credit line. He said "Don't waste your time as we have received offers well in excess of the asking price and some of them were cash offers. The vendor will certainly accept the cash offers and yours will simply be rejected....". he kept rambling with cynical laughter at my attempt to buy this property with a mortgage when he had several cash offers well in excess of £75K. I got the hint that he didn't even want to show me the property. So, I abandoned this venture as I can't compete with cash offers.

I then got the idea that I've already applied for £38K further advances from 2 of my properties and I can get
a further £9K from a 3rd one. All I need is another £30K which I can get as a loan: £25K personal loan and £5K on my Credit Card. Then I can buy a property cash and remortgage it after 6 months to get my money out. But then I thought that these loans are too expensive and I'll be taking too great a risk as I may not get all the money I put in.

A week later, I was inundated with emails telling me that I can get an 85% LTV buy-to-let mortgage @5.99 fixed for 2 years. This reduced the risk as the required deposit is substantially lower. However, the increased gearing has its own risks. This product reverts to a LIBOR + 5% standard variable which is a bit pricy. I'm prepared to wait for other offers with lower margins. If there are none before April, I'll go for this product.