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Btl Reposession


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#1 Travisher

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Posted 14 December 2011 - 12:08 PM

For quite a while now I've been trying to buy a repo and have finally succeeded. It last sold for 230k in March 2007 - so right at the top of the bubble. I paid 192k which is more than I wanted to really but pressures from elsewhere etc.. I'm aware that we are looking at the market falling by about another 20% on current trends but as savers are being punished and rents are rising I figured I would jump over the fence and become a net borrower. As inflation is going to halve the value of money in the next decade and I don't intend to move during that time I figured what the hell.
Talking to the neighbours about a property gets you all sorts of info. I knew the owner had been declared bankrupt but now I know they had gone into BTL in a big way with an alleged 50 properties all mortgaged up to the hilt. All it took was a few rental voids to push them over the edge.
Now my problem is the kids are so institutionalised by renting that they insisted their bedroom is painted magnolia!
I shall enjoy telling the tax man that there is no longer any interest for him to tax though.

#2 kev-all-in

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Posted 14 December 2011 - 12:43 PM

For quite a while now I've been trying to buy a repo and have finally succeeded. It last sold for 230k in March 2007 - so right at the top of the bubble. I paid 192k which is more than I wanted to really but pressures from elsewhere etc.. I'm aware that we are looking at the market falling by about another 20% on current trends but as savers are being punished and rents are rising I figured I would jump over the fence and become a net borrower. As inflation is going to halve the value of money in the next decade and I don't intend to move during that time I figured what the hell.
Talking to the neighbours about a property gets you all sorts of info. I knew the owner had been declared bankrupt but now I know they had gone into BTL in a big way with an alleged 50 properties all mortgaged up to the hilt. All it took was a few rental voids to push them over the edge.
Now my problem is the kids are so institutionalised by renting that they insisted their bedroom is painted magnolia!
I shall enjoy telling the tax man that there is no longer any interest for him to tax though.


Congratulations on your new home!!

I really hope there's a wave of these BTL repo's coming down the pipes - I think it's whats going to kick start the next leg down, heres hoping! (I doubt it'll be interest rates anytime soon).

What area are you in? I'm looking to buy in Ipswich when the time is right (for me), I'm hoping there's going to be a buying op. in autumn next year? (fear phase?) although I doubt the true bottom of the market will arrive before 2015 or maybe even later as this all drags on Japanese style.

Anyway best of luck, and insist on anything but magnolia!! :) :o

#3 catmandu

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Posted 14 December 2011 - 01:20 PM

I recently put in an offer at the same percentage as you purchased at. Wasn't a repo though, and didn't get the courtesy of a reply from the EA. Would have been happy to buy at that % - probably will be worth a little less in time, but at least I'd have been protected against initial falls and get the benefit of having the house to live in.
Sounds like you did ok - probably the best you can get in this market where there are few forced sellers.

#4 Travisher

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Posted 15 December 2011 - 03:04 PM

All the best and enjoy your new home.


Thanks folks for the good wishes, there are some houses in the village (Huntingdon area) that are clearly ex rentals but they won't shift on the price even though nobody is viewing. One place was obstinately holding out for a lot more than they bought it for and way beyond ( 30k) even what the estate agents thought it might be worth.
I'd hang on and watch for more repos. The banks are flogging off the bad debts to specialist recovery agents. Mine was being sold by the owner of the debt, a company I'd never heard of. They were hiding behind a large commercial property EA who were advertising through two local house EAs.
If the rumours are right, there must be 50 or so just from the fall out of the collapse that brought mine to market.




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