Jump to content
House Price Crash Forum
Sign in to follow this  
talksalot81

'in Need Of Modernisation'

Recommended Posts

As with many of us, I am a bit of a propertynews trawler and have noticed something of a change since last I was doing so. For a long time it seemed that older properties and those in need of work were attracting premiums and were snapped up very quickly by wannabe developers. I can understand that entirely, people caught up in the hype and bidding even further above and beyond because they think there is a profit to be made. However I am now seeing quite a few nice properties which are in need of this modernisation but they are now sitting there and getting no interest at all. More than that, they are now appearing on the low side instead of the premium which once seemed to be the way.

Has anyone else noticed this or is my limited sampling leading me to the wrong conclusions? I must admit I see this as a good thing. I am reasonably handy and would be quite happy to buy a place that requires some hard work, in fact I think I would much prefer that that something turn-key!

Share this post


Link to post
Share on other sites

This is what I'm seeing, at least that's what I think.

We're meeting the EA for a second viewing on a repossesed house tomorrow.

It's a bit trashed, turn of century 3 bed end terrace Cotswold stone cottage, edge of Cotswolds.

The garden, reasonable size, hasn't seen a strimmer for at least 2 summers and has random selection of sheds, knackered pond, smashed greenhouse etc.

The house has half a kitchen, 4 fire places (2 missing wood burners), a dubious suspended ceiling, a missing lintel and a split rad (minor water damage to downstairs flooring).

£16,000 and 25 days work for a builder would sort lintel, plumbing, electrics and part roof re-tiling. £12,000 and 700 days work for me would finish the rest to a good standard.

The point, though, is that it's in the sub £300k bracket. The house next door is also for sale (mid-terrace, smaller house, smaller garden, parking issues BUT ready to move into) for 30% more.

I've 'done-up' a house from scratch in the past. Not easy, but not too hard either.

I have never got involved with a repo before, and it does seem to be the devils work. Doesn't help that the EA is being very cagey when we ask any sort of question, seems he's got some sort of motive.

I'm not surprised repo's are somewhat cheaper than standard sales, it's a bit of a minefield.

But that was the whole point of STR for us last year, to be in the best position when the right home came up.

For info, have provisionally secured a 5 year fixed mortgage at 3.89%. (60% LTV).

I totally want house prices to go tits up. The more research I do the less likely this seems. If they drop 10% next year we'll be lucky. This house is a 10 or 15 year plan for us.

Share this post


Link to post
Share on other sites

As with many of us, I am a bit of a propertynews trawler and have noticed something of a change since last I was doing so. For a long time it seemed that older properties and those in need of work were attracting premiums and were snapped up very quickly by wannabe developers. I can understand that entirely, people caught up in the hype and bidding even further above and beyond because they think there is a profit to be made. However I am now seeing quite a few nice properties which are in need of this modernisation but they are now sitting there and getting no interest at all. More than that, they are now appearing on the low side instead of the premium which once seemed to be the way.

Has anyone else noticed this or is my limited sampling leading me to the wrong conclusions? I must admit I see this as a good thing. I am reasonably handy and would be quite happy to buy a place that requires some hard work, in fact I think I would much prefer that that something turn-key!

Can't say I've noticed particularly, but it makes sense. If developers don't think they can make quick money out of them, because prices are on the way down, they won't buy them. Or maybe they simply can't get finance any more. I heard recently via a colleague of someone who was 'shellshocked' when she couldn't get finance anywhere to buy her latest (5th) doer-upper, even with a good deposit. She'd never had any trouble previously.

From what I can see ordinary punters OTOH tend to be put off by places needing a lot of work.

Personally I'd always prefer something with an avocado bathroom, ancient kitchen and horrible wallpaper. That way you end up with what you like, not someone else's idea of what's nice. And at least you'll know that the electrics/gas/plumbing haven't been botched. Even a great looking kitchen or bathroom can conceal all sorts of DIY nasties.

Particularly at the lower end I'd avoid like the plague anything that's been done up just prior to selling. Usually means someone's spent £10K max on a bit of paint, nasty cheap carpet/laminate, and a cheapie kitchen, just so it looks OK. For which they expect you to pay at least £20-30K over what they actually spent.

If not more. Though thanks to nethouseprices, God bless them, you can spot the quick-buck merchants who bought just a few months previously.

Share this post


Link to post
Share on other sites

Can't say I've noticed particularly, but it makes sense. If developers don't think they can make quick money out of them, because prices are on the way down, they won't buy them. Or maybe they simply can't get finance any more. I heard recently via a colleague of someone who was 'shellshocked' when she couldn't get finance anywhere to buy her latest (5th) doer-upper, even with a good deposit. She'd never had any trouble previously.

From what I can see ordinary punters OTOH tend to be put off by places needing a lot of work.

Personally I'd always prefer something with an avocado bathroom, ancient kitchen and horrible wallpaper. That way you end up with what you like, not someone else's idea of what's nice. And at least you'll know that the electrics/gas/plumbing haven't been botched. Even a great looking kitchen or bathroom can conceal all sorts of DIY nasties.

Particularly at the lower end I'd avoid like the plague anything that's been done up just prior to selling. Usually means someone's spent £10K max on a bit of paint, nasty cheap carpet/laminate, and a cheapie kitchen, just so it looks OK. For which they expect you to pay at least £20-30K over what they actually spent.

If not more. Though thanks to nethouseprices, God bless them, you can spot the quick-buck merchants who bought just a few months previously.

Unfortunately nethouseprices doesn't apply to N.Ireland, we have no mandatory requirement to record sell prices and no free access to the ones that are recorded.

But yes, since the peak houses 'needing updating' are sitting on the market like any other. I don't think they ever attracted a premium, that was the point that they were cheaper(that amateur developers thought anyway). The real point is that you cannot add more value to a house just by 'doing it up' than the cost of such work, usually less actually, for the reasons you and others have stated. Most developers just made money because the property market had gone up during the time they owned the property. You can add value by making the house more uptodate in terms of room size/increased living space/usefulness etc, but that is not the same thing as just decorating and putting in new bathrooms and kitchens and it really needs a badly laid out house rather than out of date decoration.

The idea of buying a 'home' that needs updating is good because a large purpose of buying is to make it how YOU want it.

Edited by Ride_on

Share this post


Link to post
Share on other sites

I HAVE ALWAYS MAINTAINED THAT THE PROPERTIES NEEDING WORK WILL REPRESENT THE BEST VALUE WHEN THE MARKET GETS CLOSE TO A BOTTOM BECAUSE NOT ONLY WILL U NEED A SIZEABLE DEPOSIT TO BUY THE HOUSE YOU WILL NEED THE CASH TO DO IT UP.

Edited by getdoon_weebobby

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.