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Swansea-State Of The Market


thirdwave

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HOLA441

not just Swansea

http://www.housepric...howtopic=182310

Something to do with the uncertainty of the university of Wales funding ....err.... issues ....not just a drop in numbers but procedure and mass validation of moneyed foreign student s and dissolution ....perhaps

cover_feature_tables_050112.jpg

the cash cow may have mooed its last moo

much more here ......................http://www.timeshighereducation.co.uk/story.asp?storycode=418612

Edited by Tankus
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HOLA442

I know two big time LLs who have several properties empty. To be fair to them, neither expect things to improve any time soon and are actively seeking to bail out..

One of the managers of one of the EA chains told me that one of his directors is claiming to be losing 5K a month on BTLs. Apparently cannot find enough tenants, lots of empty rooms.

I suspect this is a fantasy figure where he is adding up all his empty rooms rather than a 5K cash outflow from his pocket each month, which would be impossible to sustain.

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HOLA443
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HOLA444
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HOLA445

There are lots of empty rooms and with the increased number of overseas students that want to live on their own or in the Marina, it makes it even harder to fill a shared property.

We have probably let as many rooms/houses as last year, but we had twice as many properties to offer this time.

All the newly refurbished properties let immediately, but the rest have been like flogging dead horses.

Many of our landlords are wanting to get out and there are just as many investors trying to get in, but the prices offered compared to the prices asked are miles apart. Investors are now looking for 12 - 15% yields whereas 4 or 5 years ago, they were happy with 5 - 7%.

Edit to add that banks will now usually only lend if the rental yield is 10% plus.

Edited by Swansea Estate Agent
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HOLA446

There are lots of empty rooms and with the increased number of overseas students that want to live on their own or in the Marina, it makes it even harder to fill a shared property.

We have probably let as many rooms/houses as last year, but we had twice as many properties to offer this time.

All the newly refurbished properties let immediately, but the rest have been like flogging dead horses.

Many of our landlords are wanting to get out and there are just as many investors trying to get in, but the prices offered compared to the prices asked are miles apart. Investors are now looking for 12 - 15% yields whereas 4 or 5 years ago, they were happy with 5 - 7%.

Edit to add that banks will now usually only lend if the rental yield is 10% plus.

Amazing.

How do the banks work out the yield. There seems to be plenty of different ways where people like to leave all types of costs out the equation. Do banks allow for void periods and damage or is it purely on cost of loan to monthly income.

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HOLA447
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HOLA448

not seen this before

Coastal amber flood alert for the gower

http://www.environment-agency.gov.uk/homeandleisure/floods/34681.aspx?area=102WABT04&page=1&type=Region&term=Wales

Hell of a thunderstorm this morning ....woke me up at 6am ........suns out now

http://apps.facebook.com/FloodAlerts/

I saw this over the weekend and it was a surprise to me also.

But parts of Gower have problems with water draining away. Places like Killay ditto. Plus parts of Swansea Bay and North Gower are very low.

There is some new build on for over 500K on North Gower and photos show it backing right onto the marsh.

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HOLA449
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HOLA4410

This one is showing as sold STC

http://www.rightmove.co.uk/property-for-sale/property-23204553.html

Last sold in 2010 for 210k

http://www.192.com/prices/details/11fd65e5ed27aca2652bbfc424e3fbf0c3443835/lr/

I have driven past it a few times.. to describe it as hideous would be generous- no windows to the ground floor and it has this horrible UPVC cladding to the first floor that would have been considered fashionable in a 60s council estate. I would say the current mortgagees have spent 25k tops doing it up and would walk away with a tidy 'profit' if it sells anywhere near asking.

Just shows there are plenty of mugs out there with more money than brains to keep the kite flyers interested

Edited by thirdwave
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HOLA4411

I hear that one EA chain is allegedly telling sellers of certain new builds in Fforestfach and Cockett that they will not even come out to value the property if the sellers are expecting to put the property on for 180K or above.

They allegedly tell people that they will only come out if the sellers are prepared to market at 160Kish.

Ironic really as IMPO their valuations in other areas of Swansea West are ludicrous and, arguably, becoming more ludicrous. One rule for the posher suburbs, another one for the 'plebs'? :lol: Or just trying to keep one market priced higher whilst generating sales at the lower end to keep turn-over? Or is the first time buyer market now dead?

EAs riding bikes next? :D

I heard of several big late 300K to 400Kish houses that came on the market in August, and went STC in a matter of days all supposedly to families buying, all came back on the market recently because the 'families' all immediately put in planning applications to build second properties in the gardens of each property.

In each case the planning application got turned down and so the houses came back on the market - in other words, there is no buyer for them currently at those prices as family homes.

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HOLA4412

I spoke with an EA last night who told me that in the last week or so he has been outbid by one competitor on every property he has valued - the competitor not only allegedly offering a flat fee but giving sellers valuations 50K or higher than he felt the houses were worth.

He said it was madness as he felt no bank would give mortgages anywhere near those asking prices. He said the market - i.e. what is selling - is now not big enough for all the EAs to survive the winter and that over-valuing will just kill the market and people will lose their jobs.

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HOLA4413

I spoke with an EA last night who told me that in the last week or so he has been outbid by one competitor on every property he has valued - the competitor not only allegedly offering a flat fee but giving sellers valuations 50K or higher than he felt the houses were worth.

He said it was madness as he felt no bank would give mortgages anywhere near those asking prices. He said the market - i.e. what is selling - is now not big enough for all the EAs to survive the winter and that over-valuing will just kill the market and people will lose their jobs.

I was going to suggest you told the EA to report them for overvaluing. Though it seems that it is legal.

In 2011 the OFT were going to ban it

http://www.estateagenttoday.co.uk/news_features/NEWS-EXTRA-OFT-publishes-new-advice-on-how-estate-agents-should-act

Though in their new guidelines where is the bit about overvaluing?

http://www.oft.gov.uk/news-and-updates/press/2012/81-12

So the OFT have issued guidelines and missed out the most important point? The one that penalises reputable agents and might dupe the public into paying more for a house?

So that's why stuff new to the market seems so ridiculously priced?

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HOLA4414

This one is showing as sold STC

http://www.rightmove.co.uk/property-for-sale/property-23204553.html

Last sold in 2010 for 210k

http://www.192.com/prices/details/11fd65e5ed27aca2652bbfc424e3fbf0c3443835/lr/

I have driven past it a few times.. to describe it as hideous would be generous- no windows to the ground floor and it has this horrible UPVC cladding to the first floor that would have been considered fashionable in a 60s council estate. I would say the current mortgagees have spent 25k tops doing it up and would walk away with a tidy 'profit' if it sells anywhere near asking.

Just shows there are plenty of mugs out there with more money than brains to keep the kite flyers interested

I had a look at this last year when it was literally a building site inside - looked like someone had gutted it and ran out of money. Think it was on for about 200K asking back then.

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HOLA4415

When this was on with the previous agent I had offered 250K but they wanted proof of "life" and I would not send details by post etc. Then change to CTF and I spoke to him saying I would be back to view soon.

I called to the office and said I'd like to view but was "dismissed " on the basis that it had gone and he said and I recall "Can't tell you how much (but it's less than 300k ....ah ah )". Now I was parked outside on double yellow lines so in a rush, but if I'd thought I would have said ,Well it will be published in the paper anyway so you might as well tell me now ..... and anyway I still want to see it". Clearly , these repos are a pain to deal ,with no money for the EA and they want to keep life as simple as poss.

The bank could have had 250K for this 6 months ago but are prepared to endure for another 3 months for 35K it seems. Maybe they'd be more realistic ...... if it was actually their money in play!!

One just for Argoed - look like the Knelston repo purchase fell through at 285K or 295K. It is back on the market.

http://www.primelocation.com/for-sale/details/26415331?search_identifier=c49580cc2930d8e8b206b54fcc9b8a0a

http://www.ctf-uk.com/property-for-sale-swansea.asp

Time to offer 250K Argoed?

Edit:

Quite funny, currently on Primelocation there is a Persimmon new build in Tycoch almost identical to it on for a ludicrous asking price IMPO given the area.

http://www.primelocation.com/for-sale/details/26362729?search_identifier=c49580cc2930d8e8b206b54fcc9b8a0a

Edited by The Masked Tulip
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HOLA4416

I know two big time LLs who have several properties empty. To be fair to them, neither expect things to improve any time soon and are actively seeking to bail out..

Odd isn't - you hear people still talking about getting into BTL but there appear to be many student landlords looking to bail out, and in Mumbles I know of several holiday letters desperate to break even on their 'cottages' by sticking them on for what they paid for them.

The second uni campus is going to have a huge amount of accommodation blocks with the emphasis geographically moved to the other side of the city from the current campus. Five years from now most students will not know that Brynmill/Uplands exists let alone wish to live there.

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HOLA4417

One just for Argoed - look like the Knelston repo purchase fell through at 285K or 295K. It is back on the market.

http://www.primelocation.com/for-sale/details/26415331?search_identifier=c49580cc2930d8e8b206b54fcc9b8a0a

http://www.ctf-uk.com/property-for-sale-swansea.asp

Time to offer 250K Argoed?

Edit:

Quite funny, currently on Primelocation there is a Persimmon new build in Tycoch almost identical to it on for a ludicrous asking price IMPO given the area.

http://www.primelocation.com/for-sale/details/26362729?search_identifier=c49580cc2930d8e8b206b54fcc9b8a0a

What a nobhed . If he had taken the time to get off his ring and meet me down there , instead of gloating about me being too late and gone already and don't waste your time etc etc then I could indeed consider making an offer now. What's more annoying is the fact that when I actually drove past this place I quite liked the look of it.

So be it. Lots of other places out there ; they may not yet be desperate but that day is approaching . Cash still king.

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HOLA4418

What a nobhed . If he had taken the time to get off his ring and meet me down there , instead of gloating about me being too late and gone already and don't waste your time etc etc then I could indeed consider making an offer now. What's more annoying is the fact that when I actually drove past this place I quite liked the look of it.

So be it. Lots of other places out there ; they may not yet be desperate but that day is approaching . Cash still king.

Put in the lowest offer to get accepted and then gazunder at the last minute?

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HOLA4419

Put in the lowest offer to get accepted and then gazunder at the last minute?

Nah. All you guys have put me off Gower now. And that bitch in the car park didn't help . Still like the geography it's the increasing philistinism down there that's the problem. But because it's a market and an area that I knew so well I'll continue to use it as a gauge.

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HOLA4420

Nah. All you guys have put me off Gower now. And that bitch in the car park didn't help . Still like the geography it's the increasing philistinism down there that's the problem. But because it's a market and an area that I knew so well I'll continue to use it as a gauge.

Well, that house is a good gauge. It had a 285K offer and did not sell. It is a new build so unlikely that there is any structural problem.

So why did it not sell? Perhaps the monthly mortgage payments were crippling even at these low IRs? Perhaps the banks simply did not think the property is worth 285K?

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HOLA4421

Well, that house is a good gauge. It had a 285K offer and did not sell. It is a new build so unlikely that there is any structural problem.

So why did it not sell? Perhaps the monthly mortgage payments were crippling even at these low IRs? Perhaps the banks simply did not think the property is worth 285K?

Nope. This is a repo and before they were prepared to submit your offer to the bank they wanted proof of funds. So if you were making a cash offer the EA wanted to see the $ sitting in your A/C.

I suspect that if you were buying with BS money the EA would want confirmation of agreement before advising the vendors of the offer. (bank)

So this situation is confusing in that however the purchase was being made the money must have been available before the offer was submitted by the EA. Very strange.

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HOLA4422

Nope. This is a repo and before they were prepared to submit your offer to the bank they wanted proof of funds. So if you were making a cash offer the EA wanted to see the $ sitting in your A/C.

I suspect that if you were buying with BS money the EA would want confirmation of agreement before advising the vendors of the offer. (bank)

So this situation is confusing in that however the purchase was being made the money must have been available before the offer was submitted by the EA. Very strange.

So the buyer pulled out or the bank withdrew the offer. Perhaps they are gazundering? It is too far out anyhow.

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HOLA4423
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HOLA4424

So the buyer pulled out or the bank withdrew the offer. Perhaps they are gazundering? It is too far out anyhow.

I've made the mistake of printing off Westcliffe and staring for increasing periods at the photos and thinking how pleasant it would be with the cliff walks and all on your doorstep. Then I imagine that they might come down from 900K to 800K and maybe 800K is, at a stretch, justifiable for this very special location.

Then I think maybe I've been out here too long and perhaps some worm or parasite has worked it's way into my bloodstream and is burrowing into my brain and affecting my reasoning ability and undermining my ability to think clearly. A caravan in Burry Port would give me views just as good I suppose and only cost me 20K. Then I could really enjoy myself.

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HOLA4425

I've made the mistake of printing off Westcliffe and staring for increasing periods at the photos and thinking how pleasant it would be with the cliff walks and all on your doorstep. Then I imagine that they might come down from 900K to 800K and maybe 800K is, at a stretch, justifiable for this very special location.

Then I think maybe I've been out here too long and perhaps some worm or parasite has worked it's way into my bloodstream and is burrowing into my brain and affecting my reasoning ability and undermining my ability to think clearly. A caravan in Burry Port would give me views just as good I suppose and only cost me 20K. Then I could really enjoy myself.

If I had 800K I would buy a house for 350 and retire on the rest. Stop and think how many of these houses will acfually ever sell at EVEN HALF their current asking prices let alone full asking price. Not many.

This area is in complete denial. Do what I aim to now do - buy a smaller more economic place to run and leave the hundreds of fantasist sellers living in Laa Laa Land.

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