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mikeymadman

More Bulk Repos In Thamesmead

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Lots 70 to 81 in http://www.a-r.co.uk/CatalogueOnline.aspx

Most of them are almost the entirety of this block; 10 out of the 12 flats:

Streetview Link

Let me see:

High density? Check

Almost non - existent parking? Check.

Lots of dodgy paths at sides of property? Check

Property built next to wasteland? Check

*Completely* surrounded by repossessed property, with only one other flat not up for auction? Check

Boarded up windows? Check.

Notorious area? Check

Litter in street? Check

Furniture lying around street? Check

Overgrown uncared for garden? Check

Depreciation that makes a new car look like good value? Check.

Must suck to be the poor swines at nos 87 and 95 that paid £146 in June 03 and £126.5 in July 08. They've had a great return on their investment and I don't think! Wish a journo would contact them and see what they think about it all.

Edited by mikeymadman

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Lots 70 to 81 in http://www.a-r.co.uk/CatalogueOnline.aspx

Most of them are almost the entirety of this block; 10 out of the 12 flats:

Streetview Link

Let me see:

High density? Check

Almost non - existent parking? Check.

Lots of dodgy paths at sides of property? Check

Property built next to wasteland? Check

*Completely* surrounded by repossessed property, with only one other flat not up for auction? Check

Boarded up windows? Check.

Notorious area? Check

Litter in street? Check

Furniture lying around street? Check

Overgrown uncared for garden? Check

Depreciation that makes a new car look like good value? Check.

Must suck to be the poor swines at nos 87 and 95 that paid ?146 in June 03 and ?126.5 in July 08. They've had a great return on their investment and I don't think! Wish a journo would contact them and see what they think about it all.

THE WHOLE LOT WENT FOR £885,000 EXCLUDING COMMISSION AND STAMP DUTY!!!!!! :blink:

AMD

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Thus (including purchaser's on-costs, i.e. SDLT at 4%) they went for 92,040 each. That's not THAT much of a deduction from the 146k; only a 27% reduction in cost.

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37% of course I meant. For such a ghastly place as Thamesmead, I'm surprised the fall is so small. Compared to the 66%s of inner Manchester/Leeds/Liverpool, it's not a lot off is it?

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Obviously Thamesmead is always an extreme example, but it's a 37% reduction from 03 prices, and 03 wasn't the peak, in fact mid 03 is roughly where we are now.

I'm not jealous of the purchaser.

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I'm not jealous of the purchaser either. Nor of the vendor, nor of the neighbours.

However, I think that peak in Thamesmead WAS about 2003.

http://www.home.co.uk/guides/house_prices_...=se28&all=1 suggests April 2005, if you look at the purple, average, line; but my suspicion is that the real peak was somewhat earlier, average prices continuing to rise as a result of more expensive properties being marketed, premium flats with river views... (The interesting graph is the very bottom one, showing that before 2002 there was scarcely a flat IN SE28.)

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True - it was a laughing stock for a long time before other places started crashing, and indeed there were already sub prime lenders refusing to touch mobile homes, house boats, or newbuild flats in SE28 a long time before the crunch started!

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Thus (including purchaser's on-costs, i.e. SDLT at 4%) they went for 92,040 each. That's not THAT much of a deduction from the 146k; only a 27% reduction in cost.

Your calculation is wrong - it looks like you divided by 10. There were 12 flats for sale in the lot! You aren't an accountant by any chance? :P That will bring the cost per unit down a bit - under £80K each!

Reading the lot descriptions, some of the flats are rented out at £8400 per annum. The whole lot might have been bought by a BTL investor and if they can rent all the empty flats at similar rents they will achieve a double digit gross yield! :lol:

Also, you say prices in Thamesmead peaked in 2003 which isn't realistic. Most of the West Thamesmead flats were sold new via the developers in late 2005/early 2006. This surely must be the time when Thamesmead prices peaked. This was also the time where the developers were inflating their prices and giving the cash back-handers back to the purchasers, thus creating the mortgage fraud that was covered in the Panorama programme last year.

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I'm not jealous of the purchaser either. Nor of the vendor, nor of the neighbours.

However, I think that peak in Thamesmead WAS about 2003.

http://www.home.co.uk/guides/house_prices_...=se28&all=1 suggests April 2005, if you look at the purple, average, line; but my suspicion is that the real peak was somewhat earlier, average prices continuing to rise as a result of more expensive properties being marketed, premium flats with river views... (The interesting graph is the very bottom one, showing that before 2002 there was scarcely a flat IN SE28.)

Peak in Thamesmead was 2006 when 2 beds in some areas reached £249,995. I did some valuations in the area at the time and I remember thinking these idiots are going to catch a cold.

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Peak in Thamesmead was 2006 when 2 beds in some areas reached £249,995. I did some valuations in the area at the time and I remember thinking these idiots are going to catch a cold.

Sorry, there are indeed 12 flats; I misinterpreted OP's reference to 10 flats. Still, not as cheap as one might have expected.

To Freeholder: the LR stats I posted suggested 2005 for peak. Not much difference, though, I agree. However, your comment does bring up the interesting observation as to valuation. If you have 100 people all willing to pay a price, then that must be the market price. What does a surveyor do when he suspects a bubble? Answer, "nothing" for he can only ever value a property on the day he visits. And if people are fighting over them, how else can they be valued?

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Thus (including purchaser's on-costs, i.e. SDLT at 4%) they went for 92,040 each. That's not THAT much of a deduction from the 146k; only a 27% reduction in cost.

Aren't they under the SDLT limit at under £150k??

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Sorry, there are indeed 12 flats; I misinterpreted OP's reference to 10 flats. Still, not as cheap as one might have expected.

To Freeholder: the LR stats I posted suggested 2005 for peak. Not much difference, though, I agree. However, your comment does bring up the interesting observation as to valuation. If you have 100 people all willing to pay a price, then that must be the market price. What does a surveyor do when he suspects a bubble? Answer, "nothing" for he can only ever value a property on the day he visits. And if people are fighting over them, how else can they be valued?

There you have it in a nutshell. Very frustrating. You can salve your concience with a comment about prices generally but on the bottom line the value is what the customers will pay, even if they are all deluded.

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Aren't they under the SDLT limit at under £150k??

At £885k they are well OVER the SDLT limit. (Linked transaction: you add together the value of all properties in the same transaction and then apply the relevant rate.)

Freeholder: I loved the surveyor's report when I sold my last house. "Houses like this are valued at between 60% of x and x. This house is valued at x (asking price - i.e. absolute top end of the range). However, it is on a busy main road, and in a less buoyant market it may be difficult to sell for the same amount of money."

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At £885k they are well OVER the SDLT limit. (Linked transaction: you add together the value of all properties in the same transaction and then apply the relevant rate.)

Freeholder: I loved the surveyor's report when I sold my last house. "Houses like this are valued at between 60% of x and x. This house is valued at x (asking price - i.e. absolute top end of the range). However, it is on a busy main road, and in a less buoyant market it may be difficult to sell for the same amount of money."

Wouldn't they just do 12 seperate contracts, one for each property? I would have thought that it is very difficult to demonstrate that this is a linked transaction (which I thought was meant to stop me selling my garden for £149,999 and the related house for £149,999 rather than selling 2 seperate flats in the same building to the same person)??

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It was sold as one lot at auction. How much more linked do you wish?

If you negotiate to buy 12 flats in a block, and get a reduction as a result, you need one contract.

There would be a risk for the vendor, if there were 12 separate contracts, at a favourable price, that you would exchange on only a couple at that favourable price. As the contracts were clearly separate, the vendor would be stuffed.

Likewise, in this case, the vendor will have been delighted to shift all 12 of them in one lot. What odds, do you think, of shifting 12 separate flats in Thamesmead???

Thus, linked.

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