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About pauluk

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  1. Just a quick update. My parents house has sold and completes today. That's about 5 months from putting it up for sale to it selling, four viewings in total and a couple of percent below the asking price. Since their sale a neighbours house which is smaller has sold for £15,000 more at full asking price to the first viewer in a couple of days of going on sale. House price inflation is alive and well in Hastings it seems. In Eastbourne where I live it seems to be a mixed picture from the anecdotes I am hearing. Some are selling in days while others are sitting on the market forever with little
  2. I have a friend with an investment property in Eastbourne marina. Its a 2 bed flat and cost £270,000, they are renting it out at £650 per month. Thats a yield of 2.8% . Prices seem to be static or falling now. Is this a good investment?
  3. Now nine weeks have passed since my parents put their house on the market. Great news!! They have had one viewer That was a week ago and they have not been back or made any comment so that has been the only excitement in 2 months. I think the statistic is that you can expect an offer after 10 viewings on average, so perhaps this thread is going to run for a couple of years at this rate! I notice on Rightmove a similar 4 bed house being reduced by 6% in the last couple of weeks. Will it be a case of sellers chasing the few buyers by gradually cutting prices? In Eastbourne where they hope t
  4. Now seven weeks on the market without a single viewing :angry: Chatting to the agent and local people the feeling was that there is a lot of interest and sales are happening for property below £200,000 but anything over that and the market is quiet. I wonder if that is a common theme everywhere ? A price below which the market is bouyant but above it and the market is dead. The housing ladder is broken half way up help ! My parents are resigned to the fact that they could be in for a long wait .....
  5. Six weeks now and not a single viewing on my parents house. They bumped into an old neighbour who used to live a few doors down from them. It had taken that neighbour 3 years to sell so I could be updating this thread for a long time! I will keep the details of my parents house anonymous but its a four bed detached on the edge of Hastings. Not far from Hillcrest school which was on the news this week because one of its pupils was threatening a girl pupil with a knife. Nice. This is also the town where schoolgirl Billie Jo Jenkins was murdered. Nice. Why does nobody want to live in Hasting
  6. The solution is easy. People with IO mortgages simply need to claim compensation from the lender on the basis that they were misold. They just say they were not told they needed to pay off the capital sum at the end. Huge compensation payments, new industry dealing with misold mortgages. Problem sorted. Also a friend of mine with an IO mortgage overtstated her income when applying for it. She asked me if she could sue her advisor for compensation for miselling. Another friend went bankrupt from taking on too big a mortgage. She also wanted to sue for compensation claiming the lender should
  7. It has now been five weeks that my parents house has been on the market. They put it on at the lowest of 3 valuations and then lowered the price by £5,000. To date they have not had a single viewing. Looking on rightmove the price is competitive, there are some 3 bed semis on at the same price. The agent is well known and they have advertised it 3 times in the local paper. They are looking to buy a flat in Eastbourne and things seem to have slowed in that market too. I live here and see the same properties being advertised and with price reductions starting to appear. My neighbour has been o
  8. Over three weeks now that my parents house has been on the market and not a single viewing despite putting it on at the lowest of 3 valuations. They have now decided to drop the price £5,000 to see if that generates any interest. The estate agent said the market was good with lots of activity. So why no viewings if the market is that good then? I get the feeling its harder these days to move up the ladder. My parents are retired with a 4 bed detached house looking to move down to a 3 bed flat. Someone buying my parents house and moving up from say a 3 bed terrace would have to take on an ex
  9. Thanks for the 2p offer but I doubt they will accept My brother sold his 3 bed town house next door in St Leonards very quickly for 2% off the asking price. My parents neighbours has just sold for the full asking price. Seems you need to be in the right place at the right time. However, I admit a feeling of stalemate seems to be developing. I live in Eastbourne and whilst some sell straight away others are hanging around for months on the market.
  10. Just to add my 2p worth (or is that now 3p worth with the price of copper as it is?) My rent has been the same for four years now. May ask for a reduction when it comes up for renewal at the end of the year
  11. Anyone from Hastings or that area? My parents have just put their house on the market. They had 3 well known estate agents in to value it and decided to market it at the lowest of the three prices. The reason being that they have found a property they wish to move to and don't want to have their property unsold for months. Putting it on at the lowest price we thought would bring a wave of viewers. Two weeks since it went on the market not one viewing. Just waiting for the phone to ring now. The newspapers are full of stories about the booming housing market and Spring being the best time to se
  12. There are going to be variations within areas. I rent in Eastbourne and pay £650 per month for a flat worth about £200,000. So that's a gross yield of 4%, I have rented it for three years at the same rent and believe it has increased in value by £20,000 or so. Overall I have lost as a Sell To Rent person and the BTL landlord has gained. However, if i had started renting about 1 year ago the situation would be reversed.
  13. Billy Shears You make a good point about BTL's looking at total return on the way up and not worrying about a loss on the rental side. As the situation goes into reverse with house prices stalling/falling the losses will escalate in areas with large numbers of BTLs as landlords sell up further depressing prices and lowering rents until there is some equilibrium again. Prices don't even need to fall to start a sell off because overall return will be negative with stalled prices. And there are selling costs to consider.
  14. It seems to be the newbuilds which are most affected which is why I guess lending on new flats is becoming harder and not available from some lenders. In the example I gave the 3.4% yield was before expenses! Take off annual maintenance (£1,000), one month for letting agent and one month for voids and the return is 2.4% before mortgage interest. Say 90% mortgage and a BTL landlord is losing around £5,000 per year. So the flat would need to increase in value by over 2% per year to breakeven overall. And as someone above pointed out prices are falling. The Boardwalk development is only third b
  15. A big new development in Eastbourne is called the Boardwalk on Sovereign harbour. Two bed flats sell for approximately £230,000 and rent for around £650 to £700. That's a yield of 3.4% If you factor in voids, maintenance charges, letting agents fee and harbour charge you are looking at a loss. It seems to only make sense with HPI of 5% or more to make up the loss. Are there lower yields around the country or is 3 to 4% the norm now?
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