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Timz

Yeovil And Frome Os Map 183

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I sold a large farmhouse in November 2007 at the guide price for £925k. Its just come back on the market this week with a guide price of £1M. In this area and for larger properties the market has clearly recovered all of the losses which seemed to reflect the national average fall of close to 20%. This is not an isolated case although it remains to be seen whether a sale results.

Properties with development potential have recently being sold at prices way over any rational explanation. One perhaps more extreme example was a half finished conversion of a farm house into a large country house, seven bedrooms, six bathrooms, 2 bed annex, surrounded by a 3 acre walled landscaped garden. It had a large lake above with a earth dam which was leaking, not in the freehold and if it ever burst the garden wall would comfortably convert the whole grounds into another lake. The original owner had gone bust, so too did the Icelandic bank and it was up for auction with a guide price of £650k. A budget to finish the work of £600k to £700k was thought to be appropriate by the auctioneer and when finished other similar properties on the market suggested that it could be worth £1.4M so a very modest profit of £100k (7%) might have been achieved if the market stayed flat for 2 years or spring 2012 plus any time it might take to sell. At least four people were bidding over £800k and it finally sold for £970k. So with stamp duty, let’s hope he can finish it for £650k and a sale price of £1,4M he is looking at a £250k loss from day one assuming a flat market. As noted the market is now driven at least for the moment from the top perhaps by foreign buyers. The evidence that this will continue is unclear. So let’s be cautious and say that it could fall by only 20%. The lucky bidder would then be looking at a probable loss of £530k.

Like Money Week's Merryn Somerset Webb everyone is wanting to get one with theirs lives and it is unrealistic to rent for more than a few years. Renting and paying large ammounts for storage is not much fun for Brits with a passion for owning. But at what ultimate cost?

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Properties with development potential have recently being sold at prices way over any rational explanation.

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Like Money Week's Merryn Somerset Webb everyone is wanting to get one with theirs lives and it is unrealistic to rent for more than a few years. Renting and paying large ammounts for storage is not much fun for Brits with a passion for owning. But at what ultimate cost?

awoooga you EA troll

Edited by Si1

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  • 140 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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