Is This The Cheapest House In Britain? Two-Bedroom Terrace Sells For £10,000 - A Third Less Than The Asking Price

[interestrateripoff]

http://www.dailymail.co.uk/news/article-2008976/John-Dinsdale-sells-house-10-000-Cheapest-Britain.html

When it first went on the market six months ago even the estate agents thought the £15,000 asking price was too much.

And it appears that they were right, after the 'cheapest house in Britain', a two-bedroom terraced property in Burnley described as being in need of 'comprehensive repair and renovation', finally sold for £10,000.

.....

'Now it has gone completely the other way. However, I think the price paid here is about as low as you can go – the only way is up.'

I fully expect evidence showing that it isn't.

However looking at the street photo if it isn't a stock one I think at that they've overpaid.

[Kilham]

‘builder-investor’

Back in my day we used to just say 'Mug'

[Si1]

oh, they can get lower, just like last time, excvept hard to see a recovery for a very very very long time

[R K]

The house in Pritchard Street, Burnley, has a living-room, kitchen, two upstairs bedrooms, a bathroom and a back yard.

It is also well-placed for central Burnley, being just a few minutes walk away from the town centre.

How could life possibly get any better.

[_w_]

'Now it has gone completely the other way. However, I think the price paid here is about as low as you can go – the only way is up.'

Did Sibley write this? It really sounds like him.

[silver surfer]

oh, they can get lower, just like last time, excvept hard to see a recovery for a very very very long time

But can they get much lower? Unless the population deserts the town there are surely some practical limits that must be reached. Let's say another £10k would make that house habitable, making it a £20k investment. Rightmove have similar rental properties in Burnley for £75 a week, so even with voids and repairs it could bring in £3,000 a year, or a 15% yield. That's similar to the yield on Greek debt!

[miko]

But can they get much lower? Unless the population deserts the town there are surely some practical limits that must be reached. Let's say another £10k would make that house habitable, making it a £20k investment. Rightmove have similar rental properties in Burnley for £75 a week, so even with voids and repairs it could bring in £3,000 a year, or a 15% yield. That's similar to the yield on Greek debt!

That sounds good but I don't think the figures really work whatever the headline % looks like.

I would bet it would cost more than £10k to put right but even it did not and stood you in at £20k , ongoing repairs , Gas saftey certificates, electrical certificates , insurance , agent fees and the voids would eat up most of that £3k if not all. A new boiler alone is £2k . A non paying tennant quite a high possibility at the lower end of the market would take 6 months and a grand to evict.

Edited June 28, 2011 by miko

[jonb]

But can they get much lower? Unless the population deserts the town there are surely some practical limits that must be reached. Let's say another £10k would make that house habitable, making it a £20k investment. Rightmove have similar rental properties in Burnley for £75 a week, so even with voids and repairs it could bring in £3,000 a year, or a 15% yield. That's similar to the yield on Greek debt!

Saying as you basically need to rebuild the place, you should be comparing it with the price of land with planning permission. £10k isn't really out of the ordinary for land in that sort of area.

[jaynewcastle]

I remember houses selling in the west end of Newcastle for 50p or two for a £1 ten years or so ago

[NuBrit]

But can they get much lower? Unless the population deserts the town there are surely some practical limits that must be reached. Let's say another £10k would make that house habitable, making it a £20k investment. Rightmove have similar rental properties in Burnley for £75 a week, so even with voids and repairs it could bring in £3,000 a year, or a 15% yield. That's similar to the yield on Greek debt!

Back in the early 90's, houses like these were sometimes sold by the council for £1, yet no one could be found to take them. There were often conditions attached with these sales though (e.g. you must let to council tenants and the property was subject to rent control, etc.). It's a shame we didn't have the internet back then, because some of the newspaper articles would have been very interesting to read.

I do agree with your basic point though, you can make money in this sector. The big problem with becoming a slumlord is that you need as much neck as a turkey, and you need to be cold and ruthless (letting out sh!tholes, evicting people, etc.) because the folks renting these places know all the tricks in the book and will fúck you over if you give them half a chance.

[Si1]

Back in the early 90's, houses like these were sometimes sold by the council for £1, yet no one could be found to take them. There were often conditions attached with these sales though (e.g. you must let to council tenants and the property was subject to rent control, etc.). It's a shame we didn't have the internet back then, because some of the newspaper articles would have been very interesting to read.

I do agree with your basic point though, you can make money in this sector. The big problem with becoming a slumlord is that you need as much neck as a turkey, and you need to be cold and ruthless (letting out sh!tholes, evicting people, etc.) because the folks renting these places know all the tricks in the book and will fúck you over if you give them half a chance.

+1

[SarahBell]

But can they get much lower? Unless the population deserts the town there are surely some practical limits that must be reached. Let's say another £10k would make that house habitable, making it a £20k investment. Rightmove have similar rental properties in Burnley for £75 a week, so even with voids and repairs it could bring in £3,000 a year, or a 15% yield. That's similar to the yield on Greek debt!

Does burnley have extra registration hoops for private landlords?

[The XYY Man]

Surely just buying it, carefully demolishing it and selling all the REAL bricks, REAL wood and the 100% COPPER and/or LEAD plumbing would realise a decent enough profit....?

Just a thought, like....

XYY

[Authoritarian]

No it's not the cheapest house in Britain.

One sold in Hull for £8k a couple of weeks back.

[SirGaz]

Whereas in sunny Coventry they cost 90 freakin grand!

http://www.rightmove.co.uk/property-for-sale/property-30574858.html

I think that includes the refurb, but truly how much should a house in that state cost?