chem1st Posted March 27, 2012 Share Posted March 27, 2012 http://www.telegraph.co.uk/finance/yourbusiness/9155129/RBS-sold-complex-swap-to-19-year-old-first-time-landlord.html “I wanted to purchase a commercial property,” said Ms Naraghi, who was advised by her property owning father about the merits of buying commercial real estate to generate a profitable return. “They agreed to give me a large loan but it did not go through. But they activated the swap two days before.” The swap taken out on June 4 capped her interest rate payments at 5.5pc but only allowed them to fall to 4.5pc and meant that she paid more interest as Bank base rates fell in 0.5pc. The £16,755 fee was paid upfront. When Miss Naraghi complained, she said she was told to keep paying because failing to do so would harm her credit rating. Later, in June 2009, when she instructed a solicitors firm, NatWest insisted that RBS was “in no doubt that the correct paperwork has been obtained, the correct procedures followed and a clear instruction given by Miss Naraghi to proceed with the transaction”. Ian Settle, NatWest’s commercial banking director in Bolton, added: “Miss Naraghi chose to enter into a hedging instrument prior to drawing on the loan and it was also our customer’s choice not to drawn down on the loan.” Letters from RBS Global Banking and Markets, however, suggest the paperwork was not complete. The bank wrote in October 2008 requesting “the formal trade confirmation” that it sent in June be signed and returned. The bank said if it did not receive the paperwork “we will assume that you have approved the terms of the transaction as set out in the formal confirmation, unless you notify us of any objections that you might have with the next five London business days.” Ms Naraghi said: “I never saw the man from RBS and he never explained to me that if rate goes down I have to pay a lot of money. He was ringing me constantly to take the swap. He had me under pressure to take it. But I never signed anything. It was all verbally, on the phone.” As the interest payments increased she called a stop last year and paid a break fee to terminate the agreement. “I refused to pay any more and they terminated the agreement and took another £36,000 from my account for termination of agreement. My account is now £36,000 overdrawn and they are intending to take legal action against me,” she said. Video analysis can be seen here from a foreign tv source... The young woman in question is described as a budding investor, yet she didn't invest money of her own, earned by herself, she used debt to speculate. She used debt to buy property in the expectation that her fellow human beings would pay off her debt and enough for her to make a profit. Let this be a lesson to ye. Risk only what ye have to lose. Do not expect to be able to profit at the expense of others. Especially when you consider the coming demographic winter and record inequalities, particularly the one between young and old, especially when you consider it in the context of the coming demographic winter. You ain't going to make money renting out property, especially if you buy via leverage/debt. As a usurer you shall be usurped by nature. Link to comment Share on other sites More sharing options...
Bonjon Posted March 27, 2012 Share Posted March 27, 2012 I really dont see what your problem is with people investing in property, whether it be their 1st, 2nd or 50th, and whether its their own money or not. I really think you need to change the record, this one is getting old!! Link to comment Share on other sites More sharing options...
chem1st Posted March 27, 2012 Author Share Posted March 27, 2012 I really dont see what your problem is with people investing in property, whether it be their 1st, 2nd or 50th, and whether its their own money or not. I really think you need to change the record, this one is getting old!! Would you swap a chicken for an egg? Would you swap a bushel of wheat for an acre of land? Would you swap a text message for an iphone? If you cannot see then you are BLIND! Link to comment Share on other sites More sharing options...
ronthenekred Posted March 27, 2012 Share Posted March 27, 2012 I really dont see what your problem is with people investing in property, whether it be their 1st, 2nd or 50th, and whether its their own money or not. I really think you need to change the record, this one is getting old!! They're a pleasant distraction from the Muslim, homophobe and helicopter threads....don't knock em. Link to comment Share on other sites More sharing options...
altus Posted March 27, 2012 Share Posted March 27, 2012 They're a pleasant distraction from the Muslim, homophobe and helicopter threads....don't knock em. This is true and it's nice to see chem1st happy for once. Link to comment Share on other sites More sharing options...
Agent Orange Posted March 27, 2012 Share Posted March 27, 2012 You ain't going to make money renting out property, especially if you buy via leverage/debt. Wanna bet Link to comment Share on other sites More sharing options...
mj.scuba Posted March 27, 2012 Share Posted March 27, 2012 Sounds like she was mis-sold the product, surprised her lawyers can't claim compo or take RBS to court. Link to comment Share on other sites More sharing options...
Jeffrey Shaw Posted March 27, 2012 Share Posted March 27, 2012 You ain't going to make money renting out property, especially if you buy via leverage/debt. Wanna bet If so, IG Index- whilst potentially dangerous- might be safer than BTL in the hands of a novice. Link to comment Share on other sites More sharing options...
FACEBOOK Posted March 27, 2012 Share Posted March 27, 2012 Chem is right, using the banks money isn't the best way to invest, using other peoples money is the best way to invest. Ask Bernard Madoff, he'll tells ya. Link to comment Share on other sites More sharing options...
FACEBOOK Posted March 27, 2012 Share Posted March 27, 2012 You ain't going to make money renting out property, especially if you buy via leverage/debt. As a usurer you shall be usurped by nature. Classic stuff Link to comment Share on other sites More sharing options...
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