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Time to raise the rents.

I Have Offered On Two Houses

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Evening all.

I just wanted to let you know that I have put in a BMV offer on two houses side-by-side on sale by the same vendor. I'm still waiting for the answer & I can see real ££££'s out of these two places so I'm crossing my fingers!!!!

Just wanted to let those who know I'm looking know anyway.....

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Evening all.

I just wanted to let you know that I have put in a BMV offer on two houses side-by-side on sale by the same vendor. I'm still waiting for the answer & I can see real ££££'s out of these two places so I'm crossing my fingers!!!!

Just wanted to let those who know I'm looking know anyway.....

Congratulations! You've just purchased another 2 nails for your coffin.

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Guest The_Oldie
Evening all.

I just wanted to let you know that I have put in a BMV offer on two houses side-by-side on sale by the same vendor. I'm still waiting for the answer & I can see real ££££'s out of these two places so I'm crossing my fingers!!!!

Just wanted to let those who know I'm looking know anyway.....

You're brave. I think I'll wait a bit <_<.

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Congratulations! You've just purchased another 2 nails for your coffin.

Thats a bit harsh, you dont know what he is buying, he could be getting a really good deal. In the current market there are good deals to be had.

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By how much TTRTR?
TTRTR,

What offers did you put in as a percentage? If you don't mind me asking.

To answer both your questions at once. The houses were put on the market a year ago at £505k and £495k. They're identical, but the internal floorplan of one is messed up losing a bedroom (which can be fixed quickly) which is why one was cheaper than the other.

They haven't sold and are now on the market for £485k each, no discrimination between the two floorplans.

I have offered to buy them both for £420k each. 1 is tenanted, the other requires about £3k of work to be rented out.

I say BMV because my place (almost identical to these two) was valued around the corner several weeks ago at £615k, so this is a steal compared to mine.

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To answer both your questions at once. The houses were put on the market a year ago at £505k and £495k. They're identical, but the internal floorplan of one is messed up losing a bedroom (which can be fixed quickly) which is why one was cheaper than the other.

They haven't sold and are now on the market for £485k each, no discrimination between the two floorplans.

I have offered to buy them both for £420k each. 1 is tenanted, the other requires about £3k of work to be rented out.

I say BMV because my place (almost identical to these two) was valued around the corner several weeks ago at £615k, so this is a steal compared to mine.

TTRTR probably has great haggling skills, but this looks like a 17% drop if you can play it hard enough.

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Guest Charlie The Tramp
I have offered to buy them both for £420k each. 1 is tenanted, the other requires about £3k of work to be rented out.

A nice 120k saving if accepted. :)

Any idea of the market value around 2003

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To answer both your questions at once. The houses were put on the market a year ago at £505k and £495k. They're identical, but the internal floorplan of one is messed up losing a bedroom (which can be fixed quickly) which is why one was cheaper than the other.

They haven't sold and are now on the market for £485k each, no discrimination between the two floorplans.

I have offered to buy them both for £420k each. 1 is tenanted, the other requires about £3k of work to be rented out.

I say BMV because my place (almost identical to these two) was valued around the corner several weeks ago at £615k, so this is a steal compared to mine.

Hmm. These are on the market. If your offer is accepted, that is the market price as nobody else has come forward to offer any more than you. Not a single person.

The function of markets is price discovery. If your offer is successful, you will have discovered the market price.

Surely you must be concerned at the loss of almost £200k on your property around the corner (on as good as a mark-to-market basis as is possible).

If you were accounting for your business on a mark-to-market basis, you would be in serious trouble.

Edit: p.s. thank you. You have just confirmed a price crash in SW London (I presume).

Edited by Smell the Fear

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To answer both your questions at once. The houses were put on the market a year ago at £505k and £495k. They're identical, but the internal floorplan of one is messed up losing a bedroom (which can be fixed quickly) which is why one was cheaper than the other.

They haven't sold and are now on the market for £485k each, no discrimination between the two floorplans.

I have offered to buy them both for £420k each. 1 is tenanted, the other requires about £3k of work to be rented out.

I say BMV because my place (almost identical to these two) was valued around the corner several weeks ago at £615k, so this is a steal compared to mine.

For the tenented property what yield would you be receiving?

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A nice 120k saving if accepted.  :)

Any idea of the market value around 2003

Who knows.....

Hmm. These are on the market. If your offer is accepted, that is the market price as nobody else has come forward to offer any more than you. Not a single person.

The function of markets is price discovery. If your offer is successful, you will have discovered the market price.

Surely you must be concerned at the loss of almost £200k on your property around the corner (on as good as a mark-to-market basis as is possible).

If you were accounting for your business on a mark-to-market basis, you would be in serious trouble.

Edit: p.s. thank you. You have just confirmed a price crash in SW London (I presume).

No I don't accept that BS. It is possible to buy BMV property because there are many vendors out there who are seriously lazy & wont fix a £300 problem that knocks untold £,000's off their properties values.

Like I said, 1 of these places has £3,000 worth of work needed immediately. The overgrown garden and two leaking taps in the kitchen (that I turned off during the inspection) and mould growing on 1 internal door are evidence of a vendor that doesn't care & just wants to sell.

And the detail I witheld and will now offer is that my place is off any main roads & these places are on a main road around the corner. Enough detail to reduce their value. But not enough to significantly affect the rent achieved!!!!

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For the tenented property what yield would you be receiving?

:lol::lol:

A yield that forces me to kick out the existing tenants ASAP.

I don't want to bring race into this thread, but the existing landlords are foreigners (yes for the quick ones, me too :D ) which is not conducive to getting the best rents possible......

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Who knows.....

No I don't accept that BS. It is possible to buy BMV property because there are many vendors out there who are seriously lazy & wont fix a £300 problem that knocks untold £,000's off their properties values.

Like I said, 1 of these places has £3,000 worth of work needed immediately. The overgrown garden and two leaking taps in the kitchen (that I turned off during the inspection) and mould growing on 1 internal door are evidence of a vendor that doesn't care & just wants to sell.

And the detail I witheld and will now offer is that my place is off any main roads & these places are on a main road around the corner. Enough detail to reduce their value. But not enough to significantly affect the rent achieved!!!!

That sounds a bit more honest then. Why try to give us the impression that are buying an equivalent property to your "around the corner" property?

You were misleading people by making them think you are buying at £200k less than your property was valued at.

Was this to boost your ego, or are you trying to convince yourself that it is the right decision?

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And before anyone asks if these places were on for a year & I've only just offered, why?

Because they were on with many agents who've now withdrawn them. I didn't have a deposit organised until recently & my hunting around has uncovered an agent that has them on their books & informed me that they were both available if I wanted them, even though that same agent only has 1 of the 2 on their website.

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That sounds a bit more honest then. Why try to give us the impression that are buying an equivalent property to your "around the corner" property?

You were misleading people by making them think you are buying at £200k less than your property was valued at.

Was this to boost your ego, or are you trying to convince yourself that it is the right decision?

It's all the same to me, the lower the price, the higher the rent, all the better. But BMV is BMV & thats all there is to it, no matter what you say to cloud things.

As usual, I expect you to stay on this minor point for some time to come......

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:lol:  :lol:

A yield that forces me to kick out the existing tenants ASAP.

I don't want to bring race into this thread, but the existing landlords are foreigners (yes for the quick ones, me too  :D  ) which is not conducive to getting the best rents possible......

It sounds like you are bringing race into it, as you are foreign as well, but you can achieve a better yield than the current foreigners. What is it about these foreigners that reduces their ability to get a better yield?

I'm not having a pop, I'm just interested that such a factor could be at play in the market. Would I be right in assuming the best yields come from middle class white members of the population? What you have revealed suggests a latent racism at work in the minds of these tenants.

It's amazing to think that it could be revealed in such an obscure way.......

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It's all the same to me, the lower the price, the higher the rent, all the better. But BMV is BMV & thats all there is to it, no matter what you say to cloud things.

As usual, I expect you to stay on this minor point for some time to come......

I won't labour the point. You have made your opinion clear, as have I.

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It sounds like you are bringing race into it, as you are foreign as well, but you can achieve a better yield than the current foreigners. What is it about these foreigners that reduces their ability to get a better yield?

I'm not having a pop, I'm just interested that such a factor could be at play in the market. Would I be right in assuming the best yields come from middle class white members of the population? What you have revealed suggests a latent racism at work in the minds of these tenants.

It's amazing to think that it could be revealed in such an obscure way.......

Well F*** Me!!! You have just touched on the answer to that great question!!!!!!!!!!

What is the problem, is it the foreign landlord, or the racism of the tenants????

You are right & I bow to your superior wisdom!!! Because there's no difference to the way the landlord treats the tenants....except the foreign (should we change that to ethnic - to be clear) landlords failing to obide by local laws.

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TTRTR I'm a surveyor and what you call BMV I call OMV or MV now since they changed the Red Book. If the sales go through they are quotable comparables for the valuation of similar houses. Good luck,

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hi ttrtr...

i don't know if you read TMF but there is a guy over there who is so pissed off with the hoops he's being made to jump through because of new regulations regarding HMO's he's selling his entire (apparently large) portfolio...

have you got on top of all the new regs or are you moving away from renting to sharers...??

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Well F*** Me!!! You have just touched on the answer to that great question!!!!!!!!!!

What is the problem, is it the foreign landlord, or the racism of the tenants????

You are right & I bow to your superior wisdom!!! Because there's no difference to the way the landlord treats the tenants....except the foreign (should we change that to ethnic - to be clear) landlords failing to obide by local laws.

That's not what I'm saying. I asked if it was the case. You are telling me that landlords from ethnic minorities are the problem as they treat their tenants badly.

Who am I to argue? I don't know any landlords and have heard nothing else about such matters. I bow to your superior wisdom!

:)

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TTRTR I'm a surveyor and what you call BMV I call OMV or MV now since they changed the Red Book. If the sales go through they are quotable comparables for the valuation of similar houses. Good luck,

This is a valid point but to be fair to TTRTR he has consistently postulated that he is driven by yield rather than CG.

It's probable that after the inevitable property price correction his portfolio will be worthless when debt is eliminated, but if he is able by skilful buying to generate above average yields surely that represents a sound business case?

Edited by Red Baron

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This is a valid point but to be fair to TTRTR he has consistently postulated that he is driven by yield rather than CG.

It's probable that after the inevitable property price correction his portfolio will be worthless when debt is eliminated, but if he is able to generate above average yields surely that represents a good business case?

If prices bomb and he ends up with zero or negative equity, will he be in breach of mortgage covenants?

In response to your yield question, it depends on how much of his own money he has sunk into the business. You would need to do a cashflow analysis to see what his real return has been and whether it was worthwhile.

If he started the whole thing with just a few grand of his own money it may still be a sensible decision. But selling at the top and buying back in later (or keeping the profits as savings or other investments) would have been a better decision.

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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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