She may be an expert money saver but Gemma Bird has revealed she is still losing money on a buy-to-let she bought just before the 2008 financial crisis.
Gemma, 44, known online as Money Mum, has amassed nearly half a million followers by offering simple money saving tips to help parents cut back on wasteful spending.
However, speaking to comedian Matt Edmondson on the latest episode of the Spent podcast, in association with Nationwide, Gemma explained she was not always so savvy with her cash.
The Sunday Times bestselling author said the purchase she most regrets was buying an investment flat in the North of England in 2007 for £102,000, which after nearly two decades is now worth just £85,000.
Gemma Bird has revealed she is still losing money on a buy-to-let she bought just before the 2008 financial crisis
Gemma, 44, known online as Money Mum, has amassed nearly half a million followers by offering simple money saving tips to help parents cut back on wasteful spending
Speaking to comedian Matt Edmondson on the latest episode of the Spent podcast, in association with Nationwide, Gemma explained she was not always so savvy with her cash
‘They always say to put your money in bricks and mortar – that’s absolutely wrong’, Gemma said.
‘You have to do research. For example, I bought a property up north – I didn’t know the area, I didn’t do my research.
‘I was going to rent it out. I went halves with my dad because I was on a low income… we bought it off plan and at the time, those flats were selling for £125,000.
‘We picked it up for £102,000 with a really low deposit – it seemed like a no brainer. Well, it was 2007 when we bought it – we’re in 2026 now and it’s worth about £85,000. It was the worst investment ever.’
Gemma explained that a combination of a surprisingly high ground rent and the financial crisis sparked panic among fellow investors in the development, with similar properties selling at auction for as low as £65,000.
Still under water on the buy-to-let to this day, the spending guru warned listeners against thinking of property as ‘a pot of gold’.
She recounted: ‘After we bought it, we realised that the ground rent was really expensive. It had a gym and everything. It was costing a couple of grand a year.
‘People who had bought them or were renting them started to think: I am not paying that. Then investors sold them off at auction. It was a massive fail.
She continued: ‘All these years on, the property is just not moving. Rents there are really poor, about £400 a month. The mortgage on it is £500, so I am actually in a negative.’
Gemma added: ‘I have not made a penny on it and it has cost me around £1,600 a year.
‘I am just going to have to keep renting it out and overpaying – the mortgage is about £88,000 on it now. I will probably have it for another 10 years.
‘I will never ever buy a flat again to rent out because of ground rents – they are just too problematic.’
Elsewhere in the podcast, Gemma revealed how her lifelong obsession with saving money turned into a career as a personal finance influencer
Elsewhere in the podcast, Gemma revealed how her lifelong obsession with saving money turned into a career as a personal finance influencer.
She explained how a conversation with a friend at a coffee shop sparked the idea, after being caught collecting other people’s discarded receipts to claim free drinks on reward cards.
When Gemma confessed she was ‘really poor’ and looking for ways to cut costs, the friend casually mentioned earning good money as an influencer and the penny dropped.
‘I remember going home and unloading the dishwasher. I looked across to my husband and said: “I am going to be a big influencer.”
‘It was free to start, which was a massive tick for me, and I love being the centre of attention. I wanted to offer not stocks and shares, but the tips I have always done. I have never been on a big salary.’
To listen to the full interview with Gemma, search for Spent now wherever you get your podcasts or on YouTube.