Soccer players who lose property game

This week in Realestateweb's Tabloid Tuesday, a wrap of interesting property news from around the world: soccer stars and sexy shoe tubs.

Balls up. The world's star soccer players never fail to amaze with their staggering salary packages and extravagant lifestyles. However, while they might make millions in hard currency on the pitch, they're losing loads of cash in dud property deals.

The UK's Daily Mail this week reports on how a string of successful mega-rich footballers have fared in the falling property market - and the findings are not rosy.

Young Wayne Rooney, the Manchester United striker who earns more than a staggering £120 000 (roughly R1,5m) a week and is believed to have amassed a fortune of about £35m tops that publication's list.

Journalist Duncan Farmer says for the past five years, dressing-room banter among the Premier League stars has focused on how to jump on the bandwagon of rising house prices. Now, says Farmer, the "big question on the team bus is: Who is going to lose the most?"

United at the front. The dunce of the footballers' property class is believed to be Rooney, who dailymail.co.uk says is likely to take the most pain. It's apparently tough call, however, between him and United boss Sir Alex Ferguson.

"Rooney is believed to be among dozens of sportsmen and showbiz stars who invested a total of £25m to build two new apartment blocks in Aldgate and Whitechapel in London's East End through their financial adviser, Formation Group," said the UK newspaper.

"Most of the 142 flats at the 17-storey Whitechapel block were sold 18 months ago to a single investor, who has since exchanged contracts but will not complete until May. However, the other building, above Aldgate East Underground station, hit the buffers when Iceland's Heritable Bank, which was funding building work, went under in November," it noted.

Ferguson, meanwhile is expected to lose all money he ploughed into aAim Ltd, a commercial property investment that owned dozens of pubs, car showrooms and factories across Europe.

Arms' length transactions. Rooney will also be "smarting" from the collapse of American house prices, thanks to the purchase of a penthouse at a luxurious riverside resort in Port Charlotte, Florida, according to the Daily Mail. It says Rooney bought the US pad from Your Place Abroad, an estate agency that catered to other famous footballers and has since gone into liquidation.

Dropped in Dubai. Others highlighted for their lack of financial prowess include footballers Michael Owen and England teammates Joe Cole, David James, Paul Scholes, Kieron Dyer and Gary Neville. They were reportedly among the investment herd who galloped onto the man-made Palm Jumeirah island. The Daily Mail recounts how they each paid about £900 000 in 2003. Recently property prices have been plummeting in Dubai and are expected to come down further.

Owen, meanwhile, has made some poor judgment calls back home. A flat he bought in Liverpool in 2004 is expected to fetch (£96 000) half the price he paid for it (£205 000), says the publication.

Dropping it like Beckham. After the embarrassing sex scandal in Madrid, David and Victoria are hoping to offload their mansion in the city for £3m. That's hardly small change, but they are giving it away if you consider they are expected to lose £2m at that price. The property was apparently put up for sale last October, said the Mail online.

All of this, of course, makes Tabloid Tuesday think that there are perhaps indeed easy opportunities to make money when footballers descend on South Africa next year. Instead of focusing on the fans, though, perhaps estate agents eager to take advantage of 2010 soccer enthusiasm should concentrate their efforts on the players because if anything gets their collective eye off the ball, it seems to be property.

On form. Not all footballers have got it wrong, though. Former Blackburn Rovers' Robbie Fowler is allegedly "still raking it in as a landlord", thanks to a portfolio of about 100 houses and flats thought to be worth £31m. He started buying in the 1990s apparently, so his units are worth far more than what he paid - even though prices have fallen in recent years.

Putting your feet up. There's much excitement among shoe fetishists on various blogging sites, thanks to a novel range of bath tubs being produced from Italy. Giant-size, mosaic stilettos are apparently the in thing for interior décor people who believe that if you scrimp on everything else, do splash out on a bed and great shoes - because you spend so much time in them.

The company that manufactures the glittering Audrey 01, 02 and 03 shoe bathtubs is SICIS of Italy. Water trickles from a jet at the heel, while the plug is in the toe end.

They don't come cheap. According to the Telegraph.co.uk, you can expect to pay up to £17 000 (more than R200 000) for the privilege of reclining in a shimmering giant heel.

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More losses to come I'm afraid for the footballers I saw an interesting graph recently showing the ratio of average UK house to average salary going back 60 years. There have been 4 major peaks and one flatish one. They have bottomed at ratios of - . .more 3 3.1 3.4 3.4 2.8 The 2.8 was after the previous peak of 5. That was the highest peak ever up to that time. The recent peak however went all the way up to a record 6.4. It has now come down to 5. In other words it is still only at the level of the top of the previous all time record peak. It is heading to between 2,8 and 3.4 if history repeats itself. It is only about half way there. The last boom took 5 years to bottom from this half way mark. The largest boom after that took 3 years. In the last crash there were at least 6 blips up or bull traps to catch the unwary before the prices continued their fall. The present blip will be the third during this crash. The UK market crash has been about a year or two behind the US market. So is the SA market. This gives an indication of the pain still to come. Will we follow them down - I think so. . .less by CJ Says on June 09 2009, 15:17 Find this comment inappropriate? Report it

Will we follow them down? CJ, do you never get tired of the pie in the sky stats that you post, time and again? I think this a case of "if I see it / hear it / say it / type it often enough, eventually I will convince myself that it is true". Go and beg your . .more bank manager for a loan, just like the rest of the tenants, and get over yourself. Maybe I can interest you in a pristine "bought from the sheriff" bargain? I'll even paint it in the colour of your choice. What do you say? Do you think you'll be able to get a bond? I doubt it, but I'm willing to help you clean up your credit, and become a homeowner. . .less by falco on June 09 2009, 16:41 Find this comment inappropriate? Report it

Robbie Fowler Did you read the part about Robbie Fowler? instead of wasting all his dosh on fancy cars etc he invested and bought up half of Liverpool in the 90's. Today he is a made man and has a constant income stream. Property is not a short term investment, if you . .more buy at the right yields and hold it over 20 years it will be paid off and you will sit on an asset and annuity income. . .less by Dan on June 09 2009, 17:03 Find this comment inappropriate? Report it

Lossing Millions. As far as finance is concerened, these GUYS are RETARDS. 1 1=11 Their MANAGERS are even worse. They only look after the soccer skills. How many proffessional players, music stars remain wealthy???????? e.g. The Greatest Rock start - . .more Michael Jackson?????? . .less by Mr. x on June 09 2009, 20:49 Find this comment inappropriate? Report it

Footie fundies Ah well, no sweat......easy come easy go. Thing is that these footballers have a limited shelf life, so if they make these kind of mega losses when they are at the end of their careers, then they are in trouble. Best to make a few C***-ups when they . .more are still marketable so that the banks and repo agents can pick up the pieces and then they can try their luck again later. . .less by Sludgemuncher on June 10 2009, 09:03 Find this comment inappropriate? Report it

Just sharing Falco Look, if it is too complicated for you to understand then that is OK - I have to accept that property folk are not the brightest of chaps. The graph in question is so obvious to me in showing us what is going to happen that it is not even . .more questionable - It IS going to happen. It is that clear. So no rush to buy. Don't concern yourself about organising a bond, when I buy I will be a cash buyer. As I repeatedly have pointed out, the reason I don't buy is not because I can't afford to buy, it is because it makes no financial sense. If you do understand the graph I discussed, but disagree with my findings, then you are most welcome, as always, to point out the flaw in the argument. I won't, however,hold my breath. . .less by CJ Says on June 10 2009, 10:32 Find this comment inappropriate? Report it

Obvious? What is so obvious to you, is not obvious to most reasonable people who are going about their business regardless~ buying, selling, making money. You should try it sometime. There are so many opportunities in the property industry for . .more cash-flush individuals right now, if you were one you would be buying, not wasting your time with graphs and hoping that the price will continue dropping forever. That alone proves to me that you can't afford to buy. So: It is only clear and obvious in your mind, not in practice. . .less by falco on June 10 2009, 12:36 Find this comment inappropriate? Report it

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