Check out this north city property for £109,995
Haggle hard and you will get it for even less - recently refurbished by the looks of it and chain free. Whatever it eventually goes for, a new margin price is created on similar properties in that area.... other properties that come on the market have their valuation based to a large part on what similar properties have sold for recently, not what they sold for last year.
So that leaves us with the auction terraces that are now coming back on the market and NOT selling - what are the worth?. The latest TOPS auction today (May 22 2008) featured 2 north city terraces:
Lot 21 - 242 Silver Road, Norwich, NR3 4TL (Guide Price £90,000 - £100,000) AVAILABLE
Lot 34 - 3 Silver Street, Norwich, NR3 4TT (Guide Price £90,000 - £110,000) AVAILABLE AT £90,000
Neither sold so you have to wonder what the true market value of these now is - it's certainly less than £90,000 but how much lower is anyones guess. But the point is you can always negotiate hard - it's a buyers market and a sellers nightmare so that first sub £100,000 terrace has arrived for those that wish to buy and have a big enough deposit. What's incredible is the prices people were prepared to pay a year ago - a few on here will remember the big 'seasoned' landlord who dumped his whole 'north city' portfolio into the TOPS auction house in April last year (some 40 to 50 properties I think...). They all sold and were mainly bought by newbie buy-to-let landlords as many had sitting tenants - TOPS actually marketed these as great investments as they already had paying tenants so you got an income stream from day one!
TOPS auction 12 April 2007 details and results
I can't find a north city terrace that was bought for less than £121,500 - I would love to have been at the auction as it must have been a real feeding frenzy with many newbie amateurs outbidding each other with their cheap interest only BTL mortgage deals from lenders like Northern Rock. Anything over £125,000 and they were also paying some lovely stamp duty to Gordon Brown for the pleasure of buying into the biggest ponzi schemes the UK housing market has had.
The average price paid for the first 16 properties listed in that auction was £128,500 - that was a year ago. You can now buy a similar property for around £90,000 or less from auction - that's a massive drop in value of 30% in only 1 year. The next property auction is with Brown & Co. and this once again features some NR3 terraces but if the TOPS auction is anything to go buy, these will also fail to sell as they have similar guide prices:
Next target is the first sub £100,000 terrace in the fabled Golden Triangle - I don't think that's going to happen this year but you never know....
Edited by CATFLAP, 22 May 2008 - 10:54 PM.