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middlecat

Huge Mark-up On Development In Earlsfield

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I came across this during a Rightmove visit.

http://www.kfh.co.uk/residential/sales/ear...ne/sw17/2046720

It first came on for £475k and was dropped to £450k recently. A house price check reveals that it was only bought in January 2009 for £250k. I visited the place and think that the development is not very well done. The kitchen is too small and the utility/storage areas were not properly built. They are more like Victorian lean-ons, albeit newer.

All in all, I find it baffling as to how it could be so overpriced! Am I the only one who finds this shocking?

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I came across this during a Rightmove visit.

http://www.kfh.co.uk/residential/sales/ear...ne/sw17/2046720

It first came on for £475k and was dropped to £450k recently. A house price check reveals that it was only bought in January 2009 for £250k. I visited the place and think that the development is not very well done. The kitchen is too small and the utility/storage areas were not properly built. They are more like Victorian lean-ons, albeit newer.

All in all, I find it baffling as to how it could be so overpriced! Am I the only one who finds this shocking?

You’re right it’s a poor development a lick of white paint, a cheap kitchen, some new oak floors but no consistency in the design. Exposed brick walls can look great in warehouses not so spectacular around a small fireplace; it also looks like different types of wood have been laid in each room. Probably an amateur a real property developer would have squeezed a further bedroom into the loft, built over the garage and extended the kitchen. Even the accessories seem all wrong and not in keeping with the property.

The original price seems cheap even though it is ex-council property – two bed flats would cost more! Other monies may have changed hands to avoid stamp duty which may come back to haunt the developer as likely purchasers will point at the original purchase price and the limited sums spent on the refurbishment. Could also be an inheritance where part of a family has bought out another half. More worryingly would be if the developer in cahoots with an ea has ripped off some poor pensioner over the purchase price to make a fast buck. It may have been a repossession - What did the EA say when you saw it? However if the development had been done better and as much as I hate to say it 400 - 450k is probably a realistic price for the area can still drop though.

Edited by FirstPost

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This area has gone up by stupid amounts over recent years. In my opinion it is a pretty decent area but property prices are ridiculous and could easily lose 20% on top of any existing falls (which doesn’t look to be too many to be fair)

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This area has gone up by stupid amounts over recent years. In my opinion it is a pretty decent area but property prices are ridiculous and could easily lose 20% on top of any existing falls (which doesn’t look to be too many to be fair)

I havent watched this area exactly but have followed SW18 up by the river very closely (Tonsleys/bigger houses behind East Hill). I agree there has been minimal falls. I thought about trying Earsfield which I thought might benefit from Wandsworth overspill but it's seems like I missed that boat. It's curious because SW London is meant to have all the city types and therefore be ripe for carnage following the Lehman fallout bvut while the smarter bits (B-sea/C-ham) have come off Wandsworth/Earsfield seem to have made only minimal discounting. So perhaps as simple as less City types in these areas

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Thanks for the feedback!

When I pointed out the exceptionally low purchase price of £250k to the EA, he didn't say much. I guess I wouldn't be so disturbed by the asking price if the property is done up properly. It would be interesting to see if it is sold eventually.

I have been looking for a 2+ bed property in Earlsfield for a while and unfortunately the prices haven't come down that much. Take the following example:

A completely unmodernised 3-bed freehold house is currently on the market for £380k. The ceiling price for the road was £416k, which was achieved in December 2006 (a pretty hot market at that time, I would say!). It will cost around £50k-£60k to update it, hence bringing the total to £430k. The EA reckons that it will go for around £350k but the total purchase cost including renovation is bringing it close to the ceiling price! The price (including renovation costs) still seems pretty high for our current economic climate, is it not?

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I know this property.

He bought when everyone else was panicking at bmv , He has done it up and is now trying to catch the bounce and sell above market value.

Earlsfield has been hit but is enjoying a bounce now.

Which is the 3-bed going for 380?

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I know this property.

He bought when everyone else was panicking at bmv , He has done it up and is now trying to catch the bounce and sell above market value.

Earlsfield has been hit but is enjoying a bounce now.

Which is the 3-bed going for 380?

How much did he spend/waste on the development? Unless he had to replace the roof and all the windows I can't see that he spent much over £30K there's a cheap howdens kitchen, expensive oak floors and a lick of paint all over. IMHO its a poor development.

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Here's another curious case spotted.

http://auctions.savills.co.uk/lond_previou..._lot.asp?pos=44

In today's Savills auction, this house went for £415k. Nethouseprices.com showed the purchase price a few months ago as £250k. What the seller (a company) seems to have done is to apply for planning permission and then put the house back on the market for a big profit! The lucky winner of the auction even has to refund the cost of the HIP to the seller.

I seriously hope that no one was rip-offed in the process.

Edited by middlecat

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