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Akawoodychess

Huth - Credit Where It's Due

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This forum, quite rightly, has criticised the Homes Under the Hammer TV programme for years. It has been a prime example of pushing the myth of BTL etc. However, the new series is now more honest and actually shows people - mainly developers - losing money on property bought at auction. A woman today bought at the height of the market, could not get a loan for development and is now facing a 110k loss. The presenters Lucy and Martin still say there is money to made if you do the research and sums correctly. But all in all they are now presenting properties and issues which reflect the current situation.

I think, this is my first post and am probably going to be shot down, that while the forum should highlight all the negative issues it should also give some, conditional, credit where it's due.

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This forum, quite rightly, has criticised the Homes Under the Hammer TV programme for years. It has been a prime example of pushing the myth of BTL etc. However, the new series is now more honest and actually shows people - mainly developers - losing money on property bought at auction. A woman today bought at the height of the market, could not get a loan for development and is now facing a 110k loss. The presenters Lucy and Martin still say there is money to made if you do the research and sums correctly. But all in all they are now presenting properties and issues which reflect the current situation.

I think, this is my first post and am probably going to be shot down, that while the forum should highlight all the negative issues it should also give some, conditional, credit where it's due.

You really are new here aren't you? :lol:

Seriously, I didn't watch it but if that's how it was then sure, that's right enough.

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Guest DissipatedYouthIsValuable

The power of Christ compels you. Leave this forum thou vile beast.

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I watched it, here's an overview:

Auction guide: £450k

Paid: £584k

Agent at the time said it'd be worth £650k when done up

She had big plans, put in for PP for a big side extension (making it double fronted) and a full width conservatory at the back, but was rejected. Put in 2nd PP and got the OK to have a smaller extension and the conservatory.

She had also bought two garages from next door, with the access drive, to widen her plot to make this possible (price not given).

Budget was £150k

She wanted to extend it, bang on the conservatory, then pop it on the market at £1.1million

Revisit 15 months later - nothing has gone on.

She said she'd spent £10k on architect/fees. But they forgot to price in the elephant ... 15 months of interest on £584k + stamp duty of £17,500 + the price of the garages. Interest alone at, say, 4% for 15 months would be about another £30k.

So she's spent:

£584k to buy

£17k stamp duty

£10k she admitted to

£30k interest

£unknown for extra land

====

£641k + the extra plot

Agents came back and valued it at: £500k and £525k

Rightmove shows it went to market in Dec 2008 for £645k

Reduced in Jan 2009 to £585k

Reduced in Aug 2009 to £545k

Still not sold: http://www.rightmove.co.uk/property-for-sa...y-20490670.html

Oh - and interest is probably £2k/month every month it doesn't sell.

Bought: February 2008

Agents valued it: June 2009

Edited by ScaredEitherWay

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