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Agentimmo

Homes Under The Hammer : Time To Change The Title ?

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Just watched the "highlights" from today's show.

All auctions from around start of 2008, with visits and evaluations about summer 08.

1. Couple buy house to do up. Plan is to sell it for profit and use this sum to give to their son as a deposit on his first house. "help him get on the property ladder" to quote his loving parents. Buy for £140K. Sons and friends do most of the work. £10K spent. EAs say it will get , possibly, £170K max in current market. Father winces and says if it goes to £160K or abouts then he won't be selling, but rent it out for s short while "until the market turns" :rolleyes:

Result is that son still isn't on the ladder and they have an asset that is decreasing in value weekly.

2. Ex-marine. Buys a place in hope of doing it up and selling on. Paid about £110K iirc. Will do work himself and use skills learnt and tools bought to launch himself into property development. The expected gain doesn't materialise with the EA evaluation. Buyer says if he can sell on and break even for the time/effort he's put in he'll be happy. Max profit envisaged (assuming sale) is 10K. For > 3 months work, not fantastic..........

3. Guy buys a garage. A dump. For £4500. EA's value it at under £4K. He'll rent it out or use for storage for tools etc on his part-time property development company he's about to embark on. (The rest of the time, he'll study for a Ph. D. - no kidding - and use the property gains to support wife and kids......... :rolleyes: )

Amazing to see that in all 3 cases the property development game was still pulling in first time amateurs. I mean at the start of 2008 it would have been evident to most sane people that the market was about to tank, if it hadn't already started. I expect all 3 will have lost money on these "projects". Rather than throw money down a pit and also work for months on doing so, they should have put it in a nice bank account at 4% interest.............

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I saw several of these in December and early January. In nearly every one, would be developers bought somewhere, did it up and then ended up renting it 'until the market picks up'. It's no wonder that rents are falling when all these socially aware people are buying up dumps, reovating them at their own expense and letting them out.

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I saw several of these in December and early January. In nearly every one, would be developers bought somewhere, did it up and then ended up renting it 'until the market picks up'. It's no wonder that rents are falling when all these socially aware people are buying up dumps, reovating them at their own expense and letting them out.

And no doubt we, the taxpayer, will be bailing them out when their project/investment goes pear-shaped. Do you know if the new govt policy pays the mortgage on 2nd homes , if the buyer is unemployed?

If not, it can only be a matter of time. All these punters who will be in -ve equity very very soon.

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Just watched the "highlights" from today's show.

All auctions from around start of 2008, with visits and evaluations about summer 08.

1. Couple buy house to do up. Plan is to sell it for profit and use this sum to give to their son as a deposit on his first house. "help him get on the property ladder" to quote his loving parents. Buy for £140K. Sons and friends do most of the work. £10K spent. EAs say it will get , possibly, £170K max in current market. Father winces and says if it goes to £160K or abouts then he won't be selling, but rent it out for s short while "until the market turns" :rolleyes:

Result is that son still isn't on the ladder and they have an asset that is decreasing in value weekly.

2. Ex-marine. Buys a place in hope of doing it up and selling on. Paid about £110K iirc. Will do work himself and use skills learnt and tools bought to launch himself into property development. The expected gain doesn't materialise with the EA evaluation. Buyer says if he can sell on and break even for the time/effort he's put in he'll be happy. Max profit envisaged (assuming sale) is 10K. For > 3 months work, not fantastic..........

3. Guy buys a garage. A dump. For £4500. EA's value it at under £4K. He'll rent it out or use for storage for tools etc on his part-time property development company he's about to embark on. (The rest of the time, he'll study for a Ph. D. - no kidding - and use the property gains to support wife and kids......... :rolleyes: )

Amazing to see that in all 3 cases the property development game was still pulling in first time amateurs. I mean at the start of 2008 it would have been evident to most sane people that the market was about to tank, if it hadn't already started. I expect all 3 will have lost money on these "projects". Rather than throw money down a pit and also work for months on doing so, they should have put it in a nice bank account at 4% interest.............

One thing about HUTH - you have to watch like a hawk to see either date of auction or date of valuation - blink and you miss them. Not that I kid myself this is in any way accidental. :ph34r:

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he won't be selling, but rent it out for a short while "until the market turns" :rolleyes:

It amazes me how many times we are hearing would be sellers repeating this.

Why do they think they will be able to sell for a profit in a short while? :rolleyes:

No wonder the rental market is becoming saturated.

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It amazes me how many times we are hearing would be sellers repeating this.

Why do they think they will be able to sell for a profit in a short while? :rolleyes:

No wonder the rental market is becoming saturated.

The saddest thing about the couple buying for their son was they thought they'd be giving him a good start in life. Incredible, but true.

"Here son, here's 30K for a deposit on your first house/flat. Go to the bank and they'll give you a 35yr mortgage, meaning you'll pay back £800 pcm, every month. What's that ? - "no spare cash to spend on foreign holidays or a car," - never mind, when the price rises next year, just MEW the place. Easy as shelling peas. Me and your old mum have been doing this for years......."

The son was 24. When I was his age, the LAST thing I was worried about was getting on a housing ladder ;)

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One thing about HUTH - you have to watch like a hawk to see either date of auction or date of valuation - blink and you miss them. Not that I kid myself this is in any way accidental. :ph34r:

For the first 4 years they didn't even give the information, What they do now is a big improvement

tim

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3. Guy buys a garage. A dump. For £4500. EA's value it at under £4K. He'll rent it out or use for storage for tools etc on his part-time property development company he's about to embark on. (The rest of the time, he'll study for a Ph. D. - no kidding - and use the property gains to support wife and kids......... :rolleyes: )

He said he was a Civil Engineer and been Project Managing for 10 years! What possessed him to buy??? You wouldn't leave anything of any value in it anyway. :ph34r:

I had a look on rightmove at that village where those parents bought a house for sonny. 2 bed detached 119k, 3 bed semi 129k. I think they have lost well over 30k...... for now.

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2. Ex-marine. Buys a place in hope of doing it up and selling on. Paid about £110K iirc. Will do work himself and use skills learnt and tools bought to launch himself into property development. The expected gain doesn't materialise with the EA evaluation. Buyer says if he can sell on and break even for the time/effort he's put in he'll be happy. Max profit envisaged (assuming sale) is 10K. For > 3 months work, not fantastic..........

TBH the fault here isn't that 10K is a poor return for three month's work.

It's the fact that it took him three months to do one month's work.

tim

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TBH the fault here isn't that 10K is a poor return for three month's work.

It's the fact that it took him three months to do one month's work.

tim

Quite.

But what also struck me was the fact he reckoned that after 3 months of bish-boshing a 2 bed house, he was fully tooled up to take on his new career. Surely if it was that easy to be a builder/decorator then there's be no need for 3 or 4 year apprenticeships :rolleyes:

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Quite.

But what also struck me was the fact he reckoned that after 3 months of bish-boshing a 2 bed house, he was fully tooled up to take on his new career. Surely if it was that easy to be a builder/decorator then there's be no need for 3 or 4 year apprenticeships :rolleyes:

magnolia and sandpaper are cheap and easy to use... so is polyfilla.

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The saddest thing about the couple buying for their son was they thought they'd be giving him a good start in life. Incredible, but true.

"Here son, here's 30K for a deposit on your first house/flat. Go to the bank and they'll give you a 35yr mortgage, meaning you'll pay back £800 pcm, every month. What's that ? - "no spare cash to spend on foreign holidays or a car," - never mind, when the price rises next year, just MEW the place. Easy as shelling peas. Me and your old mum have been doing this for years......."

The son was 24. When I was his age, the LAST thing I was worried about was getting on a housing ladder ;)

Was at a family funeral recently talking with one of my cousins. Her kid (23 I think) has just moved in with the boyfriend and bought in a relatively expensive part of outer London. "We only got a tiny one bed flat but at least we are on the housing ladder" I had to bite my tongue (I have a similar aged niece who keeps on saying "I want to buy because rent is dead money", she gets told how stupid she is!)

tim

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Is it just me or is HUTH now actually a bit immoral - surely there are now family repos going to auction and for the BBC to make entertainment programmes about idiot investors buying them is a tad unscrupulous??

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Is it just me or is HUTH now actually a bit immoral - surely there are now family repos going to auction and for the BBC to make entertainment programmes about idiot investors buying them is a tad unscrupulous??

about as immoral as watching the news.

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Is it just me or is HUTH now actually a bit immoral - surely there are now family repos going to auction and for the BBC to make entertainment programmes about idiot investors buying them is a tad unscrupulous??

No, I think it's just you.

It would make a fascinating programme if they also tracked down the former owners, and intercut their sob story with footage of the new owner making a loss.

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No, I think it's just you.

It would make a fascinating programme if they also tracked down the former owners, and intercut their sob story with footage of the new owner making a loss.

would be even better if they got the former owners to walk about the finished place with the snotty, (usually) bloated EA's to hear their comments when told how much it is now worth. Especially when told how much rental value they could "hope" for : " £775pcm for me old place ? phew, glad I gave it up - local council got me a bigger place for half that rent.........."

:lol:

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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