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Homes Under Hammer £50k Loss

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Homes Under Hammer £50k+ loss

Sept 2008 valuation, bought year before

Half watching. Ramsgate.

Bought 140k + costs, 80k spent, valued 160-170 when finished. Lots more work needed. Some kind of conversion to multiple flats.

So 220k + costs so far. 170 top valuation when finished.

So final loss 60-70k, maybe more including financing, loads more including their own time, even more lost since September valuation?

So total loss close to 100k when finished for a 140k purchase price?

=============================

Two builders specialising in subsisdence (28 years each) failed to notice 145k 3 bed was non-standard construction, possible rebuild.

Edited by NorthamptonBear

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Beaten to it by 2 minutes.

Also caught a bit about 2 builders who bought a house without reading the legal pack. Major snags. Unmortgageable!

Concrete Parkinson frame house apparently, whatever that is.

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Beaten to it by 2 minutes.

There was I thinking no one else was watching!

Amazing shot of the house seemingly consisting of just metal poles (semi)! See right through

Rebuilding that dodgy concrete house as 4 bed and also extending neighbours house as a paid for job. M6/M55 near, intending to rent (3 other houses).

Local estate agents say:

145k + costs to buy, rebuild 80k = 225k + costs

1) 280k, 800-850 pcm rent

2) 260-270k, 900+ pcm

Made paper profit of c. 45k

Edited by NorthamptonBear

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These type of concrete houses appear to be pre stressed concrete sections made in factories. Pre-fab to you and me. Mortgages are available for the better types, but because of the huge cost of repairs if structural faults appear, most companies either demand higher interest on the mortgage, or refuse to touch them.

My own bungalow, built with a mixture of brick an concrete blocks was apparently a problem for Saga, although other companies were quite happy to insure. Seeing that most houses nowadays have concrete blocks in their construction, I don't know what Saga's problem was.

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Builder paid £500k in 2004 for a house by the sea in Paignton (Seaways) and knocked it down, before getting permission. Then he bought next door!! Knocked that down as well.

Planning delays took over 3 years, now built 9 flats on the site of Seaways. 'High spec and furnished.'

£250k for an upstairs flat overlooking Torbay. All sitting empty :lol::lol::lol:

He's got a yacht so seems to be able to afford it. He won't drop the price but he must be out over £1 million.

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Developer bought seaside house 500k in 2004, finally built 9 flats (2 bed) in aug 2008. Planning permision issues.

Torbay, Devon. Sea in distance.

Wants 260k for 1 flat (maybe best), 249 market price on another.

Market dead. Chain breaking companies not even available.

Dev says market collapsed, dev stopped, no market, but prices not dropping!!??

Bought next door house to intend to do same, but no planning when bought, but planning for 7 flats passed straight away. Don't panic, will sell, batten down hatches on his yacht.

estate agent 1 :

good finish, loads of flats for sale, realistic prices,

presenter says should bite hands off buyers

Hmm, bear food overall.

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Those 2 builders with the concrete house, the Chuckle Brothers come to mind :lol:

I am speechless about the flats in Devon :o "I am not dropping the price!". There goes another million pound write-off with the banks!

They could auction them all off, he may get his original £500k back.

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Homes Under Hammer £50k+ loss

Sept 2008 valuation, bought year before

Half watching. Ramsgate.

Bought 140k + costs, 80k spent, valued 160-170 when finished. Lots more work needed. Some kind of conversion to multiple flats.

So 220k + costs so far. 170 top valuation when finished.

So final loss 60-70k, maybe more including financing, loads more including their own time, even more lost since September valuation?

So total loss close to 100k when finished for a 140k purchase price?

Even the (reasonably) sensible Martin got carried away with this property.

He reckoned that they could turn the upstairs, without extension, into a pokey studio and get 90K for it.

Thanet is a dump, you can get a 2 bed flat for 45K, why would someone pay 90K for a studio even in the (only) nice street in the area.

tim

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Builder paid £500k in 2004 for a house by the sea in Paignton (Seaways) and knocked it down, before getting permission. Then he bought next door!! Knocked that down as well.

Planning delays took over 3 years, now built 9 flats on the site of Seaways. 'High spec and furnished.'

£250k for an upstairs flat overlooking Torbay. All sitting empty :lol::lol::lol:

He's got a yacht so seems to be able to afford it. He won't drop the price but he must be out over £1 million.

Yes interesting that he wouldn't even contemplate a price reduction on the flats to get rid. Also the comment about not being a house price crash, but quite simply "no market."

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Yes interesting that he wouldn't even contemplate a price reduction on the flats to get rid. Also the comment about not being a house price crash, but quite simply "no market."

Taking a look, even though you can buy a tired town flat for 75:

http://www.rightmove.co.uk/property-for-sa...y-10714434.html

it does seem that 250 is the going price for "Luxury flat with sea view". There are dozens of them

tim

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Taking a look, even though you can buy a tired town flat for 75:

http://www.rightmove.co.uk/property-for-sa...y-10714434.html

it does seem that 250 is the going price for "Luxury flat with sea view". There are dozens of them

tim

just the aspirational price then...if there are dozens, it sure ain't, nor will it ever be, the actual selling price..

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A lot of stuff on this show is just bs these days...how about them going back and showing us the profit banked or property sold,show us the new buyers instead of dead end EA s saying its worth X

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A lot of stuff on this show is just bs these days...how about them going back and showing us the profit banked or property sold,show us the new buyers instead of dead end EA s saying its worth X

Yep,

Sometimes, when they show older property sales, I look up the property to see what it actually sold for. Often it is nowhere near the value given on the program.

All of the program's VIs seem to forget that there's a reason that the property is in the auction in the first place. If that's because it needs a total refurb then there's potentially scope for profit. However, for a property that needs next to no work, there's another reason why it hasn't sold on the open market and that reason's not likely to go away.

On today's program was a new build flat in Reading that needed absolutely no work, except cleaning.

Bought for 167 and the EA's said "put on the market for 220" (which I guess means, expect to sell at 199), but if the old owners could have got 199 after a run around with a vacuum, you need to ask "why didn't they?".

tim

Edited by tim123

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He's got a yacht so seems to be able to afford it.

So have I, but trust me it counts for naught, marinas are full of over-extended, congenital MEWers! Sailing was absolutely massacred in the last property crash, and it'll be much worse this time around.

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On today's program was a new build flat in Reading that needed absolutely no work, except cleaning.

Bought for 167 and the EA's said "put on the market for 220" (which I guess means, expect to sell at 199), but if the old owners could have got 199 after a run around with a vacuum, you need to ask "why didn't they?".

tim

Probably because it was a repo. There was 8 months old bread, milk and veg in the fridge apparently. Ugh!

Don't auctioneers agents actually check the properties? In Spain in 2007, a flat went to auction and the buyers found the dead body of the previous owner inside the flat, had been there years:

http://news.bbc.co.uk/1/hi/world/europe/6659911.stm

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Probably because it was a repo. There was 8 months old bread, milk and veg in the fridge apparently. Ugh!

Even repos are put on the open market before they are auctioned.

tim

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On today's program was a new build flat in Reading that needed absolutely no work, except cleaning.

Bought for 167 and the EA's said "put on the market for 220" (which I guess means, expect to sell at 199), but if the old owners could have got 199 after a run around with a vacuum, you need to ask "why didn't they?".

tim

It was probably the service charges on top everything else that did in the previous owner. For that type of development I'm guessing they would be around the £1.5k-£2k per annum mark. When you add that on top of the Council Tax and eventual mortgage resets the situation would become untenable really quickly.

I think it's rather disingenuous of the programme makers not to discuss overall outlay. What was it they thought it would achieve in rent? £1k a month? Ha. Yeah, good luck with that.

The couple who bought it really thought they were the shit, but obviously couldn't, or couldn't be bothered to, figure out that the flat wasn't any kind of sound business proposition. I couldn't decide between the two which was the most irritating; he was a complete tool and she thought she was auditioning for a reality show.

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It was probably the service charges on top everything else that did in the previous owner. For that type of development I'm guessing they would be around the £1.5k-£2k per annum mark. When you add that on top of the Council Tax and eventual mortgage resets the situation would become untenable really quickly.

I think it's rather disingenuous of the programme makers not to discuss overall outlay. What was it they thought it would achieve in rent? £1k a month? Ha. Yeah, good luck with that.

The couple who bought it really thought they were the shit, but obviously couldn't, or couldn't be bothered to, figure out that the flat wasn't any kind of sound business proposition. I couldn't decide between the two which was the most irritating; he was a complete tool and she thought she was auditioning for a reality show.

The lady forgot to put her frock on. Oh by the way, I am also an interior designer and a rocket scientest and a brain surgeon and an astronaut, but I can't really do any of them.

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It was probably the service charges on top everything else that did in the previous owner. For that type of development I'm guessing they would be around the £1.5k-£2k per annum mark. When you add that on top of the Council Tax and eventual mortgage resets the situation would become untenable really quickly.

I think it's rather disingenuous of the programme makers not to discuss overall outlay. What was it they thought it would achieve in rent? £1k a month? Ha. Yeah, good luck with that.

There are 7 2-beds for rent at the moment from 850 to 1195, 5 3-beds from 1400-1895 and the penthouse at 2200.

For that area of Reading, 700 appears to be the floor for 2 beds, so 1000 for a luxury flat doesn't seem unreasonable

tim

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The lady forgot to put her frock on. Oh by the way, I am also an interior designer and a rocket scientest and a brain surgeon and an astronaut, but I can't really do any of them.

The Barbie and Ken couple? circa 1976 been left by the gas fire too long.

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Yes. Also I think alot of the Reading flats are empty and have never been sold. Any HPCers live near enough to have a look?

Can't confirm that they are empty as the developer may have rented them directly, but you are right that they haven't all been sold.

The Council Tax website shows that there are 247 flats across 5 postcodes (presumably 5 buildings), and there are only a total of 172 sales, of which (if I counted right) 21 have been second sales, so 151 sold from new.

(I bet these developers are cursing the easy access to LR details)

tim

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  • 285 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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