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Goodbye Hpc...


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#1 MrBig

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Posted 20 February 2012 - 07:52 PM

Iíve 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 werenít interested as the layout and conversion required wasnít 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 werenít interested as it didnít tick all the boxes for them. On the day we managed to buy it at very near the reserve.

Iíd just like to encourage anyone wanting to buy to hold on and donít give in to deluded sellers. If possible look to auctions, and be imaginative as first impressions can be deceptive.

MrBig

#2 oligotroph

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Posted 20 February 2012 - 08:16 PM

Good job, it needs a few people putting in low offers (and completing) to start affecting the price indexes.

Even looking the "average time to sell" figures - they only include houses that actually get sold.

#3 Ascii

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Posted 20 February 2012 - 08:36 PM

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).

#4 catmandu

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Posted 20 February 2012 - 08:45 PM

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?

#5 whocares

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Posted 20 February 2012 - 09:40 PM

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.

#6 MrBig

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Posted 20 February 2012 - 11:04 PM

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.

#7 RichB

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Posted 21 February 2012 - 02:38 PM

Nice one.

Finally broke yesterday, and offered 10% below asking on the ugliest house in the world.
Other offer already at asking, so offered 10k over asking.

Told today it's gone to the other buyer, they offered more.

w.t.f

#8 inflating

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Posted 21 February 2012 - 06:12 PM

Nice one.

Finally broke yesterday, and offered 10% below asking on the ugliest house in the world.
Other offer already at asking, so offered 10k over asking.

Told today it's gone to the other buyer, they offered more.

w.t.f


Which area of Ldn is it pls?

#9 RichB

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Posted 21 February 2012 - 06:33 PM

near kingston.

fkin ludicrous.

#10 satch

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Posted 22 February 2012 - 03:35 PM

near kingston.

fkin ludicrous.

Kingston went up by 10% in the last month alone. :o need to offer 20% more than the asking price to secure the millstone around your neck.
George Osborne July 2013; 'I don't think in the current environment a house price bubble is going to emerge in 18 months or three years.' Mark Carney September 2013; ' ... there has been an improvement in prices and activity (talking about the housing market) Osborne to cabinet as quoted in the Indie October 2013; "Hopefully we will get a little housing boom & everyone will be happy"

Osborne says; ďPrinting money is the last resort of desperate governments when all other policies have failed.Ē

George Osborne December 2008; ďSavers and pensioners are the forgotten victims Ö They are innocent bystanders and itís simply not good enough for the Government to walk on by."

In his 1997 Budget speech, Gordon Brown said, "I will not allow house prices to get out of control and put at risk the sustainability of the future". He went on to say that he did not want a return to "instability, speculation and negative equity" of the 1980's and 1990's.

#11 inflating

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Posted 22 February 2012 - 09:22 PM

near kingston.

fkin ludicrous.


Sorry to read that, not good news for HPC at all, wonder where it will all end, probably only if and when IRs rise

#12 RichB

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Posted 23 February 2012 - 01:33 PM

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??

#13 inflating

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Posted 23 February 2012 - 03:08 PM

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

#14 manchester50

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Posted 23 February 2012 - 03:12 PM

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??


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

#15 RichB

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Posted 24 February 2012 - 11:54 AM

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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