Jump to content
House Price Crash Forum

kevla22

Members
  • Posts

    169
  • Joined

  • Last visited

About kevla22

  • Rank
    Newbie
    Newbie
  1. Lol, no I am a placid chap, in fact that's probably my secret! A friendly polite approach goes a long way in my experience.
  2. ;-) No I do buy 30% below market value, I could choose not to do any work what so ever but to sell in this market a property has to be A1 condition which very few houses are. With the exception of complete wrecks estate agents will value nearly all houses at close to "true" market value, if there is such a thing. Regardless of condition costs for buying selling etc are un-avoidable and in my experience accounts for 10% of the total cost (commercial rates are a real stinger), typically I would spend another 10% making it stand out from the crowd and (hopefully) walk away with a 10% profit. Its a very risky way to earn a living but I take great pride in my work!
  3. I never said anything abut 30% return, two other people did (read the above posts), the point I was trying to make is that to stand a chance of making ANY profit 30% below market value is minimising the risks. Last year my company made a 10% pre-tax profit and that's buying consistently at 30% below market value.
  4. But who decides what is a fair price to pay for a place to live? Our mortgage is cheaper than local rents for similar property, so how are we overpaying? We live comfortably and can afford interesting things. Not everyone who owns a house is overstretched! The fact that you are not comfortable with paying interest is fine, good on you, but it doesn't make it a bad thing its just your personal view. It is through borrowing money that I earn a living, like anything its how you play the game. As for being programmed to think high prices are good, how do you know I think that? did you bother to ask? No, just another attack on someone who has a different opinion to you.
  5. For a trader like me, yes it is possible to make a good return, but to invest in property you need to decide on a strategy, either trade and make money (relatively) short term or focus on rental income and hold as long term. If your strategy is to hold in the long term, earn a living from the rental income and then retire with a healthy portfolio why would you sell? Buying a property for anywhere near the asking price is risky regardless of the market / strategy as house prices are not fixed, I buy at 30% below RICS valuations but that doesn't always equate to 30% profit, you have to account for the costs of buying / selling, finance, any works that need to be carried out etc. After all that there is no gaurentee in any market conditions that the property will sell at the original valuation. I admire your simplistic view but it is this mis-understanding that gets people into trouble!
  6. For a trader like me, yes it is possible to make a good return, but to invest in property you need to decide on a strategy, either trade and make money (relatively) short term or focus on rental income and hold as long term. If your strategy is to hold in the long term, earn a living from the rental income and then retire with a healthy portfolio why would you sell? Buying a property for anywhere near the asking price is risky regardless of the market / strategy as house prices are not fixed, I buy at 30% below RICS valuations but that doesn't always equate to 30% profit, you have to account for the costs of buying / selling, finance, any works that need to be carried out etc. After all that there is no gaurentee in any market conditions that the property will sell at the original valuation. I admire your simplistic view but it is this mis-understanding that gets people into trouble!
  7. Dangerous for those who don't know what there doing, yes it certainly is.
  8. Not possible, geez you lot really don't have a clue do you. The point of buying 30% below market value is that it protects the portfolio net worth against downturns such as this, this enables an investor to keep borrowing to expand the portfolio regardless of what is happening. Of course prices can and do fall lower for some properties but most investors I know consider 30% as managing the risk. If you can't buy at this sort of level then don't invest period.
  9. Blimey, again I must re-iterate that I am talking about transaction levels and NOT price levels :-) Personally I choose not to gaze into the crystal ball, something may happen to kick it all off again that nobody can yet see, you just never can tell! But I agree completely that cash buyers cannot fill the gap left by the mass BTL brigade.
  10. Hey hey, Yes I think that is right, my mistake! I was thinking about a sale where the buyer was in negative equity on their existing house but the bank let them port the mortgage including the shortfall as they were up sizing (to a rather lovely house, though I would say that as my company renovated it!) thanks for the correction (you too Huw!)
  11. Hah, nice crystal ball you must have. There is too much emphasis on this site with regards to capital growth, as I have said many times before professional investors focus on RENTAL YIELD, the investors I deal with will only buy property 30% below market value regardless of the market conditions, many have not bought at all for the last few years as the rental yields just didn't stack up, now though they are out in force!
  12. I don't think you've understood my post, BTL went crazy as everyone and their dog bought for short term capital growth, this is a completely separate issue to investors shifting their money from savings to property to get a better yearly return for their cash. Its the people with the large deposits and plenty of cash that are buying, in all recessions the rich get richer as they are the ones who can take advantage of the situation. My company offers fixed price refurbs to professional / new investors and this side of the business is busier than ever. You choose to look at stats and figures where as I look at what is happening on the ground and I can tell you for a fact that people with cash are switching to property with savings rates being so low. In Lincoln for example a 2/3 bed terrace can be picked up for 30-40k (50% below peak) and realistically achieve £350 pcm, I know where I would rather put my money!
  13. I think we may have to agree to dis-agree :-) Many people who could buy are choosing not too as they believe prices have further to fall, fair enough. Certainly in Lincs / Notts where I trade people are renting and after 6 months looking to see if a house has come up that they like and priced well, if there is nothing appealing they continue to rent. At some point these people will buy back in, I am not saying the market is going to suddenly take off but I do think a slow recovery in transactions from the incredible lows seen last year will take place. The blockage in the market place is lending for new borrowers which stops the properties chains, selling just one low end property can result in 6-7 sales taking place so it doesn't take many investors to get things moving.
  14. Hello Beans, that is impossible to answer, believe it or not some properties are still rising in price it just depends on what the demand is like for a particular property. Personally I get independent valuations carried out by a qualified RICS surveyor included in the building survey, because they are now worried about being sued they will be super realistic with the valuation. Estate agents are generally not qualified surveyors and will use local research and experience to gauge the price, most will over value to get business by around 5%. Try and find out what the sellers motivation is for moving, if they need to move quickly and you can proceed then start 10% lower than where you want to be and negotiate upwards if needs be, make sure you offer is subject to survey and independent valuation. Remember you hold all the cards, estate agents have many tricks and will try and prey on FTB'ers to drive the price up, don't listen to them and stick to your guns. With emotional purchases its too easy to go higher to get what you want and estate agents thrive on this!
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.