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Does a 3-4 bed semi in Hendon priced at 325k (2007 price 350k), in very good condition seem like a good deal considering that the rental income is 420pw?

Many thanks

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Does a 3-4 bed semi in Hendon priced at 325k (2007 price 350k), in very good condition seem like a good deal considering that the rental income is 420pw?

Many thanks

Do you have a rightmove link - a 3-4 bed semi in Hendon is a very vague description.

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Does a 3-4 bed semi in Hendon priced at 325k (2007 price 350k), in very good condition seem like a good deal considering that the rental income is 420pw?

Many thanks

6.7% gross yield?

Knock off agents fees, you'll be at 6% at best

Allow for wear/tear/repairs and voids you're probably below 5%...

So, no not really :(

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Does a 3-4 bed semi in Hendon priced at 325k (2007 price 350k), in very good condition seem like a good deal considering that the rental income is 420pw?

Many thanks

A 3 or 4 bed semi in Hendon at 325k seems good value to me... unless it's in the worst part of Hendon (e.g. West Hendon)...

:unsure:

420pw = over 1650per month which, given a 200 times monthly rent valuation, suggests a value in excess of £330k.

£325k is under that, which suggests a good deal IMHO.

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A 3 or 4 bed semi in Hendon at 325k seems good value to me... unless it's in the worst part of Hendon (e.g. West Hendon)...

:unsure:

420pw = over 1650per month which, given a 200 times monthly rent valuation, suggests a value in excess of £330k.

£325k is under that, which suggests a good deal IMHO.

A fabulous 1.5% discount <_<

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A fabulous 1.5% discount <_<

Actually, £420 a week is £1820 a month, suggesting a valuation (on 200*monthly rent) of £364,000.

£325k is actually a 10.7% dicount on that, so you were only over 600% out on your 1.5% estimate.

:huh:

Do you work for the Government Office of National Statistics by any chance?

:lol:

Edited by SHERWICK

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This is the link for the house I was asking about:

I also noticed that there are a couple of houses nearby that are now renting for 450 pw so it's not looking bad considering that it's in very good condition, price includes all the furniture and appliances and there seems to be room for extension.

http://www.rightmove.co.uk/property-for-sa...x%3D87%26y%3D14

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This is the link for the house I was asking about:

I also noticed that there are a couple of houses nearby that are now renting for 450 pw so it's not looking bad considering that it's in very good condition, price includes all the furniture and appliances and there seems to be room for extension.

http://www.rightmove.co.uk/property-for-sa...x%3D87%26y%3D14

Wow a 7% potential gross yield! :blink:

Blackstone just bought 50% of the Broadgate office complex by Liverpool Street with sitting tenants at that yield

Go to Liverpool Street take a look at Broadgate, then look at your semi in Hendon and see if you think its a good deal <_<

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This is the link for the house I was asking about:

I also noticed that there are a couple of houses nearby that are now renting for 450 pw so it's not looking bad considering that it's in very good condition, price includes all the furniture and appliances and there seems to be room for extension.

http://www.rightmove.co.uk/property-for-sa...x%3D87%26y%3D14

Ah, I now see why it's only £325k.

a) I wouldn't want a house right on the A41.

B) It isn't really in Hendon proper.

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Wow a 7% potential gross yield! :blink:

Blackstone just bought 50% of the Broadgate office complex by Liverpool Street with sitting tenants at that yield

Go to Liverpool Street take a look at Broadgate, then look at your semi in Hendon and see if you think its a good deal <_<

You keep going on about how bad a 7% gross yield is, but please find a better yield on residential property in London or the South East.

Where I live, a £325k property would yield about £1400 pm or 5% annually IF YOU'RE VERY LUCKY.

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I don't plan living in that house for now and it's set back from the main road so the noise wasn't as bad as I'd expected. At 7% it's very tempting!

Thank you all for your thoughts.

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You keep going on about how bad a 7% gross yield is, but please find a better yield on residential property in London or the South East.

Where I live, a £325k property would yield about £1400 pm or 5% annually IF YOU'RE VERY LUCKY.

That might mean that residential property is a bad investment right now? :blink:

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That might mean that residential property is a bad investment right now? :blink:

OK. So when was it a good investment in your humble opinion?

I.e. when in the past would you have got a better than 7% yield on a £325k property?

The plain fact is that a 7% yield is the best I've seen in the entire UK even after house prices have dropped considerably over the last 2 years. It's the best yield I've seen in the past 5 years.

That is unless you want to cram 10 people in a 3 bed house and charge them £300pm each...? :unsure:

Edited by SHERWICK

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OK. So when was it a good investment in your humble opinion?

I.e. when in the past would you have got a better than 7% yield on a £325k property?

The plain fact is that a 7% yield is the best I've seen in the entire UK even after house prices have dropped considerably over the last 2 years. It's the best yield I've seen in the past 5 years.

That is unless you want to cram 10 people in a 3 bed house and charge them £300pm each...? :unsure:

When it yielded about 10-12% in the mid-90s and base rates were 6-7%

The current base rates are an anomally

"When something can't go on forver it will stop" as some American economist once put it

But go ahead, bet everything you have on black, just dont be surprised if you leave the casino broke ;)

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When it yielded about 10-12% in the mid-90s and base rates were 6-7%

The current base rates are an anomally

"When something can't go on forver it will stop" as some American economist once put it

But go ahead, bet everything you have on black, just dont be surprised if you leave the casino broke ;)

So you're saying that the only time it made sense to invest in residential property was right at the bottom of the last crash?

Of course, it was the best time to invest, but the only time? I think not. If we apply your theory to any other asset class, then no one would invest in anything unless it had/has crashed too.

The fact is, as I've pointed out, a 7% gross yield is EXTREMELY good for residential property and hasn't been seen for a very, very long time indeed. In fact, the only time that this 7% was beaten seems to have been at the bottom of the last crash.

Regarding your comment about the current base rates being an anomaly, of course they are - everyone here knows that. But who can get a mortgage at the base rate? No one. So, what's your point? Yes, interest rates will eventually go up. And house prices may go down when this happens. However, this is by no means guaranteed. If you want to wait and wait, please do so, but I think a 7% gross yeild is excellent.

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So you're saying that the only time it made sense to invest in residential property was right at the bottom of the last crash?

Of course, it was the best time to invest, but the only time? I think not. If we apply your theory to any other asset class, then no one would invest in anything unless it had/has crashed too.

The fact is, as I've pointed out, a 7% gross yield is EXTREMELY good for residential property and hasn't been seen for a very, very long time indeed. In fact, the only time that this 7% was beaten seems to have been at the bottom of the last crash.

Regarding your comment about the current base rates being an anomaly, of course they are - everyone here knows that. But who can get a mortgage at the base rate? No one. So, what's your point? Yes, interest rates will eventually go up. And house prices may go down when this happens. However, this is by no means guaranteed. If you want to wait and wait, please do so, but I think a 7% gross yeild is excellent.

Then go for it, good luck <_<

The trough conditions you are talking about lasted from about 1994-1997 so four years

The lasting housing crash lasted from 1989-1995 approx, so six years approx

So far this one has been going on for 1-2 years

In your final para you are rather assuming that spreads will decrease markedly when base rates go up. I'm not so sure <_<

I'll wait thanks ;)

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Then go for it, good luck <_<

The trough conditions you are talking about lasted from about 1994-1997 so four years

The lasting housing crash lasted from 1989-1995 approx, so six years approx

So far this one has been going on for 1-2 years

In your final para you are rather assuming that spreads will decrease markedly when base rates go up. I'm not so sure <_<

I'll wait thanks ;)

I have no interest in buying that or any other property right now. But that's the best residential property deal I've seen since the mid 90s, which isn't bad at all.

FWIW, I don't think the trough will last as long as the last one in the 90s IMHO - only time will tell.

(Note: I was a VERY strong bear between 01 and 07).

I also think spreads will decrease markedly in time - maybe not as soon as rates go up, but 1 year or so after that. The spreads we have right now are an anomaly as banks repair their balance sheets IMHO.

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I have no interest in buying that or any other property right now. But that's the best residential property deal I've seen since the mid 90s, which isn't bad at all.

FWIW, I don't think the trough will last as long as the last one in the 90s IMHO - only time will tell.

(Note: I was a VERY strong bear between 01 and 07).

I also think spreads will decrease markedly in time - maybe not as soon as rates go up, but 1 year or so after that. The spreads we have right now are an anomaly as banks repair their balance sheets IMHO.

Couldnt agree more ;)

My personal view is that inevitable tax, saving and public spending changes will suck out a lot of disposable income from the system after the next election

So I will wait and see what that means for interest rates, mortgage lending and house prices <_<

Finally I do think the mortgage lending spread and multiples that were seen this decade were probably an anomaly also, so the equilibrium rate is somehwere in-between

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The fact is, as I've pointed out, a 7% gross yield is EXTREMELY good for residential property and hasn't been seen for a very, very long time indeed. In fact, the only time that this 7% was beaten seems to have been at the bottom of the last crash.

Actually, no, some grim London ex-council flats were going at auction for 9/10% yield based on rents obtainable via local housing allowance rates last year. Somewhere there are auction threads commenting on this. Although one does risk very hefty service charges on such tower block properties when council decides to, e.g., replace all windows in block.

That house is on a seriously busy main road. I believe it would need to rent at a discount compared to others around the corner. Probably looking at lower yield than 7%, even before voids and maintenance.

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Actually, no, some grim London ex-council flats were going at auction for 9/10% yield based on rents obtainable via local housing allowance rates last year. Somewhere there are auction threads commenting on this. Although one does risk very hefty service charges on such tower block properties when council decides to, e.g., replace all windows in block.

That house is on a seriously busy main road. I believe it would need to rent at a discount compared to others around the corner. Probably looking at lower yield than 7%, even before voids and maintenance.

I already pointed out that a massive negative is that it's on the A41. I can't imagine why anyone in their right mind would want to live on that to be honest!

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Got to chip in because I used to live in an identical pad on Watford Way for 4 years (2000-2004). I remember the house leaping up towards a valuation of 300k whilst I was there but the rental for the property never went above 1250/month. I used to sublet the rooms and eventually gave up on the UK and moved to Asia. Now maybe rents have increased in the last 5 years but worthy of a footnote.

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It's London so I believe that compromise is required sometimes. The noise doesn't bother me and the property is somewhat set back from the road with access from the Neward Way, too. I don't think renting it will ever be an issue because of the Uni being so close to it also people that work in the Brent Cross tend to live in the area. Thanks again to all of you for your input.

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It's London so I believe that compromise is required sometimes. The noise doesn't bother me and the property is somewhat set back from the road with access from the Neward Way, too. I don't think renting it will ever be an issue because of the Uni being so close to it also people that work in the Brent Cross tend to live in the area. Thanks again to all of you for your input.

I used to work in Brent Cross 20 years ago! :huh::unsure:

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