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About 5lab

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  1. 5lab

    Just Bought A House!

    and having marked as sold fairly quickly, its now back up for sale again, with a generous £2500 discount for a quick sale. he's only going to make £35k for doing nothing at this rate. What is he thinking? https://www.rightmove.co.uk/property-for-sale/property-88674080.html
  2. 5lab

    Just Bought A House!

    its not a bodge up (I think) - they've simply done very little since I owned it. It was in reasonable condition then, bit ratty round the edges as you might expect but no howlers. The windows are all aluminium, not sure if there are other frames being referred to? edit : just looked at the pics - if you're talking about the lean-to, then yeah its in a pretty shabby shape. For the 8 years we lived there we just used it as outdoor storage
  3. 5lab

    Just Bought A House!

    to add a twist to this, the bloke who bought it applied a literal coat of paint (to the front of the house, which was last painted 4 years ago, front door which was done at the same time, and the kitchen, which was a little tired), put new carpets in the halls & 2 back bedrooms, and listed it for £37-47k more than he paid (!) its gone sold stc which is crazy when another house on the street is listed at 38k less than he paid.. https://www.rightmove.co.uk/property-for-sale/property-88674080.html
  4. I considered this very question when I bought my house in Brighton in early 2008. I negotiated a bit off the asking due to work needed (similar to you) so didn't feel like I could do any more. A year later it was worth £20k less. The tale is here -> https://www.housepricecrash.co.uk/forum/index.php?/topic/69416-just-bought-a-house/
  5. 5lab

    Just Bought A House!

    yeah. as always its a bit of a gamble. we got lucky with tenants so the only void was as the end (waiting for the chain to sort itself out whilst selling) - 4 months out of a 4/5 year window. It would still have been profitable even with no capital growth, but whether it would out-do other investments, I'm not sure (I suspect the same cash put into fundsmith, say, would have generated more back with less hassle, even taking into account growth; £100k in 5 years ago would be worth ~£250k now)
  6. 5lab

    Just Bought A House!

    I think Brighton is definitely affected by the ripple from london (in both directions) - but within Brighton the ripple moves quite slowly - places near the station gained at close to the rate London places did over the start of the decade, and have begun falling already - my house is about a 2 mile walk from the station so is slower to react and moved less (in both directions). Looking at sold prices I think I'd have got a touch more (£5-10k or so) if it had sold a year ago, but prior to that things were on the way up - to put it in perspective when we looked into selling in 2014 we thought it would probably price within the stamp duty barrier 'dead spot' (£250-270k) that existed at the time. The most noticable difference from when I bought to when I sold is how few houses are around now. Some interesting charts (which reflect what I think I noticed) here https://www.home.co.uk/guides/house_prices_report.htm?location=brighton&startmonth=08&startyear=2007&endmonth=08&endyear=2019
  7. 5lab

    Just Bought A House!

    I still lurk on here from time to time, so I thought I'd bring this up to date.. I moved out of the house I bought in 2014, to a larger place in a village nearby. I chose to keep hold of the Brighton house and rent it out for a few years, and sold it this year (completing earlier this week) - in the end it sold for £338k. This seems like a big rise (I bought for £214k, right at the peak of the market) - but if you take the money\time I spent refurbing it (approx 20k) plus inflation into account, the rise is <1% per year in real terms. There were some brown pants moments through 2008 and 2009 as things were crashing down, but Brighton rebounded pretty quickly. Happy to answer any questions about mortgage availability, why I became a landlord, why I'm now not, costs etc, if anyone's interested in figuring out more about how the maths adds up
  8. cells - this book http://www.amazon.co.uk/Houses-Historical-Analysis-Property-Prices/dp/1907994017/ref=sr_1_1?ie=UTF8&qid=1327231372&sr=8-1 has historical data for around 10 countries, going back as far as 400 years in one case (from memory). Its a great read and I encourage anyone on this forum to get it.
  9. apologies if this has already been covered - did a search and didn't spot it.. a week ago I spotted this book on amazon http://www.amazon.co.uk/Houses-Historical-Analysis-Property-Prices/dp/1907994017/ref=sr_1_1?ie=UTF8&qid=1315747648&sr=8-1 bought a copy, and sat down for a read. Its a very good book. Essentially it looks at 100-400 years of house prices in about 8 countries (including the UK) and tries to identify what causes boom in prices, what causes crashes. Some of the stats about housing are interesting, as are some of the misconceptions about growth. There is a lot of information which could be considered bear food, as well as some examples from the other side. In essence, I'd consider it essential reading to anyone on this site who wants to educate themselves a bit more as to where house prices have been before (looking back further than the traditional 'back to 1970' graph we've got, and looking overseas as well). It'd also be good reading for anyone who was considering buying a house. At the end of the book he discusses 3 things that could happen to house prices in the uk over the next 10-15 years, with some interesting side effects pulled out from each scenario. Overall, go and buy it, and have a read. Its well researched, unbiased, and if you spend hours of your life browsing on here, it only makes sense to do some reading of properly researched material as well Hugh ps. I'm not in any way affiliated with the book - I spotted it at random, read it, and thought it was good
  10. yeah I brought in feb, having agreed a price in sept 2007 then re-negociated it in Jan. Its probably gone up by more than that (has new bathroom, kitchen, central heating, flooring, etc etc etc) but was just surprised that the 'drive by' still rated it up 11k - would expect it to have been flat
  11. heh I thought that would get some responses.. let me clarify a few things.. 'fairly central' - its about a 5 min walk from that pedestrianised bit of hove, with shops/cafes and so on. value for money - well, its not cheap. but it's not priced that unreasonably when you compare it to other things on the market (I'm not saying the market is where it should be, just saying, for where the market is..) for instance http://www.rightmove.co.uk/property-for-sale/property-34407236.html http://www.rightmove.co.uk/property-for-sale/property-29474308.html http://www.rightmove.co.uk/property-for-sale/property-35413952.html http://www.rightmove.co.uk/property-for-sale/property-35214398.html they were just a quick search for stuff worth 500-700k in the area. Some of those places are bigger than the houses in question (note, they're not flats) - some are smaller. But I'd imagine at this kinda price range, you're not after the biggest house you can get if you go for any of these? I guess its a question of taste - for £600k you can get a converted old building (remember, the argus lofts and the old college house sold out fairly quickly), a traditional semi, a sea view regency flat, what looks like a new build house, or a flat whose only selling point appears to be the fact you can change the light colour in the bathroom. 600k seems like a lot of money but its the law of diminishing returns in a city. for £150k you can get a 1 bed flat, 200k a 2 bed flat, 300k a terrace 3 bed house, but up from there its a lot more vague.. Would I buy one? no, I don't have 600k, and if I did, I'd rather somewhere with a bigger garden, but I wouldn't say that no-one will. Will they get £650k? probably not. will they get £550k? I would expect they will fairly easily.
  12. its a very nicely done place in a fairly central location. its price is a bit more than the old college house flats of similar size, which is the best thing I can think to compare it to, but they're in a slightly better area (the level isn't right outside) You'd not do well to BTL them - high end properties never rent for as much as the mortgauge (which would be in the region of 3-4k/month). however I suspect someone will buy them - quite a quick commute up to london (near aldrington station) so I guess the money might come down from there? in other brighton news, they're just finishing off a row of housing in bevendean road (off bear road). I think its 10-12 new houses. The last batch (of 6) that they put up there were listed at 300k each, and sold for £285k on average - very small 4 bed houses, all sold to btl'ers. I'm happy stuff is still being built, but I expect the new batch will go the same way. I just had my place valued by a rics surveyer for a remortgauge. They didn't even bother driving by (i guess they just did a quick search online). came back at 5% more than I paid in 2008. I guess if thats what people are allowed to borrow, thats what things will be worth..
  13. thats a pretty competetive rate for a 90% mortgauge, typically these are in the 4+% range
  14. there was something in the times on saturday about extra funding for BTL properties - something about 'build to let' which gave funding or something specifically for developers who are building for landlords. Guess that won't be too popular on here if it goes ahead?? There was also something about trying to crack down on 'rouge landlords' - whoever they are.
  15. on a 25 year mortgauge @ 5% (probably fairly typical for a ftb) you'd pay off a smidge under 10% over the first 4 years. So if they bought with a 90% mortgauge then they can probably walk away, but if they bought with a 100% mortgauge then they're probably stuck for now.. Regarding paying it off - depends on the cirumstances. Lets say our couple got a 4x joint mortgauge of 100k. That means their individual income is just £12,500 a year, or around £900/month. Saving 10k on that kinda salery would take a *long* time, so in effect they would be trapped. I was a ftb 4 years ago, with a multiplier somewhere around 4.5x and 90% ltv, but used low interest rates, pay rises, work done to the house, and luck (Brighton is within 5% of it's peak) to mean I'm now comfortably on a 70%ltv and 2.5x multiplier, with significant equity in the house. I don't plan on selling any time soon, but its easy to see how someome could make that decision in 2008 (to buy). I came on here for a look around and everyone had been saying prices were due to crash for the previous 5 years. Granted in 2008 things did turn south, but the site sounded like a stuck record (as it does today, to some extent)..
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