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I've been looking for a house in Lymington as a cash buyer since STRing. Made a few offers, but no success.

Just had a call from an EA about a really nice property that I went to see a few months ago. It had been part modernised but the work had stopped. Great location and has planning permission for the remainder of the development work. Sounded then like a developer was feeling the squeeze, so I made a -25% offer but heard no more and the property was subsequently withdrawn from sale.

The EA says the seller is now open to offers, but needs to have a sale by the end of the week so must be a buyer who can write a cheque.

I bought and sold during the 1989-95 crash and in that period you came across this kind of thing all the time. Didn't guarantee a house worth buying, but it certainly put the skids under daft asking prices by giving EA's some leverage to get local asking prices down. Hardly ever come across it now though, hopefully this is a sign that the cracks are spreading. I'm driving down this afternoon to meet a surveyor there and decide what my next offer will be.

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Put an amount of money equivalent to your maximum bid with your solicitor and discuss a completion price at 4pm on Friday but tell the vendor the money can be in hic account by close of play-should get another 15% off on top of your 25%.

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How much did they buy it for?

Wanting a sale and being prepared to take a "loss" isn't the same thing.

Offer very low - but ring a solicitor who does auctions in your area and get a quote from them. They can have it sorted in that timescale without missing some important legal aspect.

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The EA says the seller is now open to offers, but needs to have a sale by the end of the week so must be a buyer who can write a cheque.

I bought last winter, the seller was unable to afford to fill the oil tank and was down to burning wood from the garden and running electric fan heaters borrowed from friends to keep warm. The asking price had dropped so low (~35% below a neighbours house sold at a few months before), we just offered to buy it on the spot for asking price and complete asap.

The EA had told the seller to price it low and expect a bidding war i.e. a lying toad that just wanted his commission asap, thanks mr EA.

It took me 8 years to find a desperate seller with a house in the area I wanted. I hope yours works out.

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I bought last winter, the seller was unable to afford to fill the oil tank and was down to burning wood from the garden and running electric fan heaters borrowed from friends to keep warm. The asking price had dropped so low (~35% below a neighbours house sold at a few months before), we just offered to buy it on the spot for asking price and complete asap.

The EA had told the seller to price it low and expect a bidding war i.e. a lying toad that just wanted his commission asap, thanks mr EA.

It took me 8 years to find a desperate seller with a house in the area I wanted. I hope yours works out.

:)

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This is looking like it might happen.

I don't want to give away too many details and blow confidentiality, but it's clear that the property's owned by an amateur developer who's got himself in hot water. He's desperate/realistic enough to know that he's going to lose money and it's just a question of how much. Talking it through with the surveyor yesterday we reckon he's sunk about £70k in the work he's done so far, and there's additional planning approval in place for a £60-70k second phase of work which he now can't afford to begin. Although habitable it really needs all the work completing to get the price he wants, so he's now stuck between a rock and a hard place.

So is it a bargain if the developer loses money? No, not really. Such is the madness of Lymington house prices that even though it's a good 20% down on peak prices it's still not like the true bargain I picked up in the 1989-95 crash, I guess that's what happens when interest rates are indefinitely held at the lowest level for 300 years. But it's a great Edwardian house that ticks a very long list of boxes at a decent price. And after STRing in 2005 I'm ready to throw the towel in.

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... it's a great Edwardian house that ticks a very long list of boxes at a decent price. And after STRing in 2005 I'm ready to throw the towel in.

Good luck to you. So what would be your plan? Continue to rent for 3-4 months while you complete the work?

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Good luck to you. So what would be your plan? Continue to rent for 3-4 months while you complete the work?

Thanks. i'm working in London and renting there, but I'm taking early retirement next year so I'll have plenty of time to complete the work before moving in.

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If all the work is done, and it was to an acceptable standard, what would be the price would you be willing to buy it for (A.)?

How much work needs going to it to bring it up to that acceptable standard (B.)? Add 50% to cover for uncertainties, hassle, etc.

(A.) - (B.)*1,5 gives you your offer price.

Although I suspect by the sounds that this offer price is very close to zero...

Edited by Lepista

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Just another little anecdotal, a house in a village close to where I live went on the market just last week for £175k, 4 bed, 4 recep victorian eot, needs some renovation work. 1 week later and £10k has been knocked off the price. At the height of the market a property such as this would have been in the £250k price bracket even with work needing doing. I alsoe happen to know that the owner has recent invested a hugh amount in a business venture, and may well be needing the capital tied up in the property.

I think we will see more and more of this sort of thing happening over the next two -four years. I am tempted with this one, it's the first where I have thought to myself ooooowwwwww, but I think waiting longer will pay off, and because it doesn't tick as many boxes as I would like.

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Lymington the town that was too posh for an Argos. It will be one of the last places to capitulate unfortunately. I know, I've been waiting for a crash here for 5 years. I have seen building projects put on hold, and now restarting and completing since the dark days of 2007. Very rich people live here, they can have weekend private airshows from the Red Arrows and from other vintage aircraft - I've seen those shows for free.

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Lymington the town that was too posh for an Argos. It will be one of the last places to capitulate unfortunately. I know, I've been waiting for a crash here for 5 years. I have seen building projects put on hold, and now restarting and completing since the dark days of 2007. Very rich people live here, they can have weekend private airshows from the Red Arrows and from other vintage aircraft - I've seen those shows for free.

Still got a 99p store though, and a busy one at that!

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Still got a 99p store though, and a busy one at that!

I hear it is the 2nd most successful store in the company. I see people in there I know, and they say "Oh the wife brought me in here." Keep looking at the floor may be best. It is not uncommon to see an Aston Martin parked outside the 99p Store though.

Good luck with house hunting. I will be moving to Southampton soon joining up with the rest of proles, hopefully when this house works out. So if I ever do come across some serious money, I will be back mixing with the so called "elite" of Lymington who never ever venture into the 99p store!

Edit - Exclamation mark added.

Edited by Money Spinner

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Viewed a house today in Mumbles that just came on the market. Turns out the couple who used to own it and rent it out need to raise cas quickly.

Why?

Because they basically used most of the garden of the house to build their a new build which they have had on the market for nearly 3 years now at 400K. The EA said that their low IR mortgage deal is up and they have to sell one of the houses quick or go bankrupt.

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Just heard from the EA, had my offer accepted. I don't want to give too many facts as I'll blow anonymity, but the developer will definitely be taking a loss on this of at least £50k.

So does that make it the deal of the century?

Not even close unfortunately. I STR'd at the end of 2005, selling a detached house in south-west London and subsequently renting in Richmond. Looking at the numbers it's sobering how little I'm ahead as a result of STRing. If I'd never bothered I could probably still have sold now at a slightly reduced price, although I would have needed to be a cash buyer to have picked up the house I've just got. Less easy to factor in are the sleepless nights in 2007 when it looked entirely possible that the banks might default taking much of my STR fund with them. I made a bit over 20% after tax on gold and equities from 2008 to now, although I've been paying rent for the past six years that nearly wipes those gains out.

Maybe I STR'd too soon and bought too soon? Possible, but as any long term member of this forum will attest, timing the top and bottom isn't easy. In my personal case I'm taking early retirement at the end of this year so had set December 2011 as the deadline for buying back in. The one major change to my plans was the decision to buy the smallest house that fitted my needs rather than the biggest house I could afford, because I'm convinced the UK property market will prove a dire investment for the next few decades or even generations. Consequently I want the minimum invested in it commensurate with finding a nice place to live. That's probably the biggest learning I've taken from this forum.

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  • 311 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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