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Goodbye Hpc...


MrBig

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HOLA441

I’ve just bought a house at auction, at less than 50% of the peak selling price and hope my story offers encouragement.

We sold up in May 2007, and went abroad to work for a year. Coming back to the UK we decided to rent. We had been

looking off and on since then for somewhere to buy through estate agents, but the asking prices were unrealistically high, and not dropping. We were looking in the North of England, and hardly anything was selling, but occasionally perfect houses would sell at near peak prices. This was disheartening. We made offers (c20% less than asking prices) but no one was entertaining them. So we decided we needed to take an alternative approach and look exclusively at auction sales where the vendor had to sell.

A year has passed since then. We had looked at a handful of auction properties; most had some downside, legal or physical. We missed out on a few. We recently found a property being sold by a local council. Externally it was in perfect shape but a bit of a mess inside. When viewing it the other interested parties all walked out within 2 minutes as the inside was such a disappointment compared to the kerb-side view they were put off. However, the interior grimness was superficial and with a bit of imagination and relatively small outlay we decided we could have the perfect house, in the perfect location with a refurbished interior just as we wanted. Property developers weren’t interested as the layout and conversion required wasn’t a quick win. We had the cash available, the time to get the necessary work done and had a family friend who is a builder to work on it.

The local council set a low reserve as they need to sell and developers weren’t interested as it didn’t tick all the boxes for them. On the day we managed to buy it at very near the reserve.

I’d just like to encourage anyone wanting to buy to hold on and don’t give in to deluded sellers. If possible look to auctions, and be imaginative as first impressions can be deceptive.

MrBig

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HOLA443
If possible look to auctions, and be imaginative as first impressions can be deceptive.

Absolutely. I'm in an auction property too. Bought March 2010 for £93k. We're mid terrace in a block of four. The adjacent end terrace went for £187k in 2007. Had to spend about £20k to bring it up to scratch but broadly speaking similar story toyours.

Only problem is that it's too small and I need to trade up and them prices aren't dropping yet. And a lot of "auction properties" are turning up on general EA books (presumably as they have a lack of stock they will take them on).

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HOLA444

Thanks for the info and well done on your house. With some basic decorating skills there's a lot you can do in a house for very little outlay. Good that you had a reliable builder too - my recent experience of tradesmen is that some just can't be bothered phoning back even for a £1400 job.

How did you go about finding auctions? I have seen a few online but not a huge list of housing. Do you get many e.g. 400k housing for sale at 300k or so, or are auctions mostly at the cheaper end of the market?

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HOLA445

Well done. And thanks for letting us know if is possible to get such discount if you are patient and determined.

I totally agree with the comment that knowing people in the building trade who are decent and reliable is a huge advantage when buying, as it can be very stressful getting expensive work done. I, (not knowing anyone & having zero knowledge of DIY/property maintenance), would really prefer a "ready to move onto" sort of house or ar least with problems I can live with!

Hope it all turns out nice for you when you move in.

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HOLA446

Thanks for the info and well done on your house. With some basic decorating skills there's a lot you can do in a house for very little outlay. Good that you had a reliable builder too - my recent experience of tradesmen is that some just can't be bothered phoning back even for a £1400 job.

How did you go about finding auctions? I have seen a few online but not a huge list of housing. Do you get many e.g. 400k housing for sale at 300k or so, or are auctions mostly at the cheaper end of the market?

It was mainly at the lower end of the market, but also larger properties what had some blight (leasehold, structural issues). You need to be patient to find something that is just right. I initially subscribed to the EIG auction information service, but this is costly. It gives sold prices also, which is useful to see what comes up and how often. However you can negotiate the price down. If you have decided on an area then finding auctioneers is easy - yellow pages plus the national auctions.

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HOLA4412

No indeed.

If it could be guarenteed that that Irs would not rise, then sure, I can commit to that sort of spending. But on a chance? And with the 15k odd of stamp duty and 50k deposit??

I have no idea what they have up their sleeve, what I have learnt is that I can assume nothing, one way or the other - and I think that's because they are either bent or idiots

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Stamp duty is a killer. On the houses we're looking at it equates to ~12 months savings - ridiculous.

Indeed.

But what does that really tell you? That stamp duty should be abolished - or that the houses you are looking at are massively over priced?

Stamp duty was put in place in order to keep a lid on house prices.

If you were in the untaxed group, you were buying a basic home. The low % group, suggests you clearly have enough money around to contribute some extra.

The high % group obviously indicates you are spunking money on a luxury status symbol, and should be taxed accordingly.

Not the governments fault that people are stupid enough to bid up the price of the biggest purchase they will ever make to massive bubble proportions - indeed they are doing all they can to keep prices down by rigourously enforcing the stampduty limits and bravely not bowing to pressure to scrap them.

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HOLA4419

Not every post needs to be a debate. Debating on online forums always seems to end up a major time-sink and becomes a drain on my energy on top of work, family etc. Reading the stories provided by others, making observations and sharing anecdotes do enough for me and make up my version of 'HPC-lite'

Edited by manchester50
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HOLA4420

Not every post needs to be a debate. Debating on online forums always seems to end up a major time-sink and becomes a drain on my energy on top of work, family etc. Reading the stories provided by others, making observations and sharing anecdotes do enough for me and make up my version of 'HPC-lite'

Really? Why bother in that case?

I mean, sure, lurk, but expressing yourself will help you to get more out of the experience, figure out more before you have to end up talking to real people that matter.

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HOLA4422

I've just bought a house at auction, at less than 50% of the peak selling price and hope my story offers encouragement.

We recently found a property being sold by a local council. On the day we managed to buy it at very near the reserve.

I'd just like to encourage anyone wanting to buy to hold on and don't give in to deluded sellers. If possible look to auctions, and be imaginative as first impressions can be deceptive.

MrBig

Nice story. Are you prepared to say where? And how much you paid?

Absolutely. I'm in an auction property too. Bought March 2010 for £93k. We're mid terrace in a block of four. The adjacent end terrace went for £187k in 2007. Had to spend about £20k to bring it up to scratch but broadly speaking similar story toyours.

same question please, where?

(living mortgage free in a terrace somewhere up north is looking tempting.)

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Indeed.

But what does that really tell you? That stamp duty should be abolished - or that the houses you are looking at are massively over priced?

Stamp duty was put in place in order to keep a lid on house prices.

If you were in the untaxed group, you were buying a basic home. The low % group, suggests you clearly have enough money around to contribute some extra.

The high % group obviously indicates you are spunking money on a luxury status symbol, and should be taxed accordingly.

Not the governments fault that people are stupid enough to bid up the price of the biggest purchase they will ever make to massive bubble proportions - indeed they are doing all they can to keep prices down by rigourously enforcing the stampduty limits and bravely not bowing to pressure to scrap them.

Not often I post anymore but I need to ask you if you really believe stamp duty was put in place to keep a lid on house prices.

The way I see it , it is a nice little earner for the government.

As for people spending cash on a property that comes into a higher stamp duty band, I have to disagree with you.

Some could see it as a status symbol, some might see it as a requirement.

Kind of hard to get a family of 2 adults and 4 children into a bedsit methinks.

London prices are somewhat higher than those in say Newcastle so a £250,000 budget might suit up north, but not down south, but the duty is constant.

If we look to council tax bands the figures go out the window within a 10 mile radius of my location.

There are also some hidden costs involved with transportation which some guys don't bother factoring in when house hunting.

Living 30 miles from work is going to cost around £10.00 a day in fuel alone which equates to £200.00 a month. That is dead money that could better be spent on paying a mortgage off.

Just my thoughts mind.

***Edit typo***

Edited by Son of Taeper
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HOLA4425

Not often I post anymore but I need to ask you if you really believe stamp duty was put in place to keep a lid on house prices.

The way I see it , it is a nice little earner for the government.

As for people spending cash on a property that comes into a higher stamp duty band, I have to disagree with you.

Some could see it as a status symbol, some might see it as a requirement.

Kind of hard to get a family of 2 adults and 4 children into a bedsit methinks.

London prices are somewhat higher than those in say Newcastle so a £250,000 budget might suit up north, but not down south, but the duty is constant.

If we look to council tax bands the figures go out the window within a 10 mile radius of my location.

There are also some hidden costs involved with transportation which some guys don't bother factoring in when house hunting.

Living 30 miles from work is going to cost around £10.00 a day in fuel alone which equates to £200.00 a month. That is dead money that could better be spent on paying a mortgage off.

Just my thoughts mind.

***Edit typo***

What did a good house cost back in the early 90's? 100k for a pretty good one?

What was stamp duty then?

http://www.hmrc.gov.uk/stats/stamp_duty/00ap_a9.htm

If people regarded the stamp duty thresholds as an independant guide to not getting a hole reamed in them, then it might have helped.

But no.

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