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rainbow

Landlady Now Wants Me To Buy!

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I have been renting this nice apartment for the past 2 years, rent was £950, reduced to £800 for past year. (Previous tenant paid £1200 apparently)

After I had been here a couple of months, the landlady mentioned she was uncertain on what to do with the property, so I made her an offer of £275K for it, probably worth around £300/£310k at the time, she turned it down.

Well now, almost 2 years on she wants to sell.

She had 3 agents round last week for valuations. She phoned me Friday and asked if I was interested at £285K, she said only one of the agents has got back to her so far, with a valuation of £299,950, with maybe a view of getting a close offer.

This agent is known to overvalue property in the area and although I didn't tell her I was surprised at the low price he put on it, wonder if it is because he sees it as an investment property and therefore a potentially quick deal for him.

Of the 2 other agents who ame round, Foxes and Connells, I got talking to the lady at Foxes, who said she would probably put a price at around £320K, she had a print out from nethouseprices, that showed the last one to change hands, which was No 23, on the !st floor, a 3 bed (ours is 2 bed on the 4th floor) changed hands for £275K in March 05. She was totally shocked when I showed her the original details of this property when it came on last August for £349K, her words were "Christ! that was a drop!", but what I found shocking about the woman was that when I mentioned how bad the Land Registry transaction figures were for the last quarter, she didn't kown what the Land Registry was :blink: and actually wrote the website down when I gave them to her. She didn't know that nethouseprices was based on LR figures. Incredible, I kid you not!

Anyway, what to do? we've lived here for more than 2 years now, and although it's very nice, we're STR's with itchy feet, we lived in our 1st property for 15 years and don't really know if we want to drop anchor again.

Mrs Rainbow

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Rainbow,

My wife looked an a flat at the beginning of the year I mentioned it a while ago, it is in a very good area, listed at £230K, a couple of weeks later we were called about a price reduction to £215K, it has just shifted to another agent, this time £199,950. We have a property paper from back in Jul 2001, listing price then £189K.

Getting there and we've hardly scratched the surface with what is going to happen to over-leveraged owners/investors/banks and a consumer economy that is based on ****** all other than borrowing to spend..

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Isn't there a stamp duty threshold at around £250k?

This is worth at least a bonus £5k to you if you offer less than £250k.

NB

The house may well sink to £220k in a few years.

(Renting a £285k property for £800pcm seems quite cheap to me)

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but what I found shocking about the woman was that when I mentioned how bad the Land Registry transaction figures were for the last quarter, she didn't kown what the Land Registry was :blink:  and actually wrote the website down when I gave them to her. She didn't know that nethouseprices was based on LR figures. Incredible, I kid you not!

Mrs Rainbow

not surprised in the least - i had a discussion with an EA a couple of years ago in which i mentioned that the MPC were talking about further IR increases - her response was that people were entitled to their own views but no-one really knew what was going to happen - i left with a wry smile at how clueless she was

in my experience EAs live in their own little world (office) and are completely unaware of macro-economics, which is a shame as their industry forms a fair chunk of it in the uk - still, it helps to explain why they focus on elections, weather and popes as excuses for lack of sales - i genuinely think many just don't realise that price is a problem

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A house has recently sold in my neck of the woods for £249K, it sold in 2001 for £242K.

A 2 bed mid terrace near where I live (Burwash, East Sussex) was put on sale for £285K in March this year. 2 months later it was reduced to £254K, now (after change of agent) it's down again to £249K. Given its condition and location (front door 10 feet from a busy A-road), I think it's still incredibly overpriced. What's interesting is that it sold for £174K in April 2000, and again for £245K in June 2002 - it looks very likely that the current owner might end up selling at a loss (if it sells at all).

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A 2 bed mid terrace near where I live (Burwash, East Sussex) was put on sale for £285K in March this year. 2 months later it was reduced to £254K, now (after change of agent) it's down again to £249K. Given its condition and location (front door 10 feet from a busy A-road), I think it's still incredibly overpriced. What's interesting is that it sold for £174K in April 2000, and again for £245K in June 2002 - it looks very likely that the current owner might end up selling at a loss (if it sells at all).

Mother-in-law has had her bungalow up foir sale in Poole for about 10 months - only 1 very low offer about 3 months ago. It's become a bit of a family joke (she doesn't really need to move) At the weekend she said she was taking it off the market because "no-one's buying since the bombs"!

I let her get away with this face-saver - she's a very nice old lady really!

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keep buying the weekly newspapers - property sections, its the best way ive found of keeping upto date with whats going on, its interesting looking back on asking prices of last year -earlier this year.

The ones that really want to sell are reducing - see my post -ea pricing difficulties- I could find numerious examples.

If you really want to buy offer the price you would be happy with, this is what ive done and although I havent as yet bought I am happy to have missed out so far! as something better keeps turning up.

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Mother-in-law has had her bungalow up foir sale in Poole for about 10 months - only 1 very low offer about 3 months ago. It's become a bit of a family joke (she doesn't really need to move) At the weekend she said she was taking it off the market because "no-one's buying since the bombs"!

I let her get away with this face-saver - she's a very nice old lady really!

Although I mainly tune-in for the bigger picture economic analysis I read HPC.co.uk (and there's some damn fine analysis, far better than you'd get from so-called experts), it's this kind of anecdotal snippet that keeps me coming back for more. It's kinda Little Britain, but real. Scary really, that people think this way, when you think about it.

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rainbow,

£800pcm is your rent.

For an interest only 100% mortgage at nominal 5%,

to have the same repayments, puts the price aorund 192K.

(or let's say the mortgageable value:for that rent),

subtract transaction costs, add your deposit...)

Try offering that :D

Personally I still think that is too much for any apartment,

no matter how nice

ABB

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Just got back in, thanks for all the advice, guys. I think if I offered her £192K(based on the £800 a month rent) I'd need the smelling salts handy.

Anyway we are supposed to have a further conversation with the landlady tomorrow, I'll let you know what happens. Thanks again.

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Just an update.

Two viewings today, the first ones since it went on the market two weeks ago. (I suppose because it's raining and there's nothing to do at the coast in the rain).

Both retired couples, one looking to upmarket, one looking to down.

It's amazing the sort of perspective you get of the estate agent when you are neither a vendor or purchaser in the transaction, the woman EA showing the first couple round whispered to my husband, when the couple were in one of the bedrooms, "Time Wasters, they are not even on the market yet with their property" (she wouldn't have said that if we were the owners).

Second couple she bought round a couple of hours later. she said "these aren't much good, they lost their buyers just this morning"

The gentleman viewing couldn't stop talking about the property he had, six bedroom chalet bungalow with 2 acres of land, of course it was all too much for them now and they needed something smaller. His wife was seriously discussing how they were going to get all their furniture into this 2 bed apartment because she couldn't bear the thought of parting with anything. We were hiding in the kitchen, p*****g ourselves laughing :P:P

My husband took them to the underground parking, where we have one of the few tandem parking bays, problem is it's next to the designated bike parking, which pretty much gets spread right around our bay. The old guy said" Oh, I couldn,t park here, I have a "Mercedes"

He also asked if the apartments were quiet, we of course said yes (don't know why it's not our problem) but in reality there had been a raving party in the apartment above us on Monday night, that went on until 5am in the morning, when my husband went up and knocked on the door and told them they were taking the p**s, it finished up with them all down in the grounds screaming their heads off.

Anyway on the way to show the second viewers the car park, a neighbour got into the lift with them and proceeded to discuss the whole incident, which did not go down well with the potential purchasers. It's been a funny old day. :lol:

Mrs Rainbow

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It's amazing the sort of perspective you get of the estate agent when you are neither a vendor or purchaser in the transaction, the woman EA showing the first couple round whispered to my husband, when the couple were in one of the bedrooms, "Time Wasters, they are not even on the market yet with their property" (she wouldn't have said that if we were the owners).

Second couple she bought round a couple of hours later. she said "these aren't much good, they lost their buyers just this morning"

Chuck that EA down as one you'd like to avoid. She thinks so little of the buyers and she can't keep for gob shut. Who does she think she is divulging that info to a third party? Although I am keen to hear it :lol:

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in this market,

the only offer to make is one the vendor would consider an insult.

I might try £245K, which suggests you will go to £249,900

Can you offer cash for a quick sale?

Yes, we are cash buyers, from STR, no mortgage involved, but after living here for 2 years plus, fancy a change anyway, but the landlady is a nice woman and we could probably do a deal if we wanted to.

But if we had bought it two years ago instead of renting it we would be looking to move now anyway, itchy feet and all that.

And if we had bought two years ago, there would have been no profit, these apartments have actually fallen back a little. Taking into account stamp duty, solicitors and then selling on fees to the EA, we would have possible been money out.

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Yes, we are cash buyers, from STR, no mortgage involved, but after living here for 2 years plus, fancy a change anyway, but the landlady is a nice woman and we could probably do a deal if we wanted to.

But if we had bought it two years ago instead of renting it we would be looking to move now anyway, itchy feet and all that.

And if we had bought two years ago,  there would have been no profit, these apartments have actually fallen back a little. Taking into account stamp duty, solicitors and then selling on fees to the EA, we would have possible been money out.

If you get itchy feet after two years, wouldn't you be better off renting long term? Buying and selling that often sounds a lot of hassle, as well as being pretty expensive!

Additionally, you are doing very well to rent the place for £800 if it is worth anything like £250k.

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Just an update on the Landlady's property that's for sale.

Been on the market for six weeks now, only 3 viewings, no offers.

I'm quite surprised at the response really, as I thought that there would be much more interest at the price.

These apartments have been known to change hands for a lot more in the recent past, I am friendly with a lot of the owners here, and they are all pretty shocked that there has been such little interest.

I keep getting questioned as to why I'm not interested in buying it. I'll let you know how it goes.

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Just an update on the Landlady's property that's for sale.

Been on the market for six weeks now, only 3 viewings, no offers.

I'm quite surprised at the response really, as I thought that there would be much more interest at the price.

These apartments have been known to change hands for a lot more in the recent past, I am friendly with a lot of the owners here, and they are all pretty shocked that there has been such little interest.

I keep getting questioned as to why I'm not interested in buying it. I'll let you know how it goes.

Time for that insulting offer of 192k?

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I keep getting questioned as to why I'm not interested in buying it. I'll let you know how it goes.

Good on you Rainbow, really appreciate this insight your giving us on the trials and tribulations of the present market. Where are you by the way, as in my neck of the woods HPI is still positive YOY, though negative quarter on quarter.

I think the big problem for some FTB'ers and STR'ers a like will be when prices start dropping the "top" will still be a measure by which some people ajudge value. I know it sounds daft, but after 12 months of buyer seller stand offs, when a property is eventually reduced by say 10/15% some will think....Now thats more like it, I might have a punt at that. There will be buyer participation all the way to the eventual bottom, dead cat bounces will be common, and thats why any correction will be a long and protracted one. IMHO

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Time for that insulting offer of 192k?

Why is it insulting to offer 192k? I've been to housing investement conferences

where the presenters have stated that 'Rule 1' is don't play the game if you are not prepared to take advantage of the situations that life presents all sellers, i.e. deaths, sales of second homes, and falling markets. You should start with a low offer of 190 and then grudgingly accept 192 after some haggling. Bear in mind sellers were more than happy to overinflate prices in the hope of someone underwriting their good fortune and opportunism.

I thought the main point of this site is to promote a fightback against the inequity that comes from housing speculators being able to control house prices. A coordinated effort by all to offer 30% less than asking WILL start to have and effect so get the message out to other buyers and please start with a low offer - you have nothing to loose. If you are at all reticent just sit down and work out how much YOU will pay over the duration of the mortgage to service 50GBP of debt! Thats money you could be putting into a pension annuity. (I'm making the assumption that there really is a housing bubble and that cash will soon flow out of housing and into equities).

Good luck.

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Latest news.

Two more viewings, no offers.

The landlady phoned Monday (she's very nice), asked if we intended staying on for the next six months, as she is thinking of taking the flat off the market until the Spring. She seems pretty fed-up with the EA, as she hasn't received a single offer.

I did my bit by pointing out that most of the developments looking over the seafront (same as this one) now have three or four flats for sale, which are not shifting, and even the best are having reductions in price.

She opened up a bit by telling me that she has another local property, that she usually lets to students, when the last tenancy expired she had it totally refurbished, and now has it on the market with Connells (being nosy I popped in and got the details, 4 bed detached - £335K) but she has had no interest in that property either.

Rainbow

Bournemouth

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  • 301 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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