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champstamp

Need Some Advice On A Repossession

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Lurked on here since xmas but need some advice, hence first post.

We've come across a repossessed apartment (in very good condition) in arguable the most desirable building in a major city centre. It's asking price is 50k - 60k (30%) below it's market value. I found the market value from asking the Ea what it would be marketed at if it wasn't repo'd and checking previous sales on zoopler, the last two sales in Sep 12 where the same price as the Ea's estimate.

We're considering buying the apartment, cleaning it up and putting it back up for sale within about a month, essentially flipping it and pocketing the difference.

How feasible is this? I've worked out all the fees/costs involved and we'll stand to make a small fortune which makes me believe it's too good to be true, which is why I'm asking your opinions.

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Lurked on here since xmas but need some advice, hence first post.

We've come across a repossessed apartment (in very good condition) in arguable the most desirable building in a major city centre. It's asking price is 50k - 60k (30%) below it's market value. I found the market value from asking the Ea what it would be marketed at if it wasn't repo'd and checking previous sales on zoopler, the last two sales in Sep 12 where the same price as the Ea's estimate.

We're considering buying the apartment, cleaning it up and putting it back up for sale within about a month, essentially flipping it and pocketing the difference.

How feasible is this? I've worked out all the fees/costs involved and we'll stand to make a small fortune which makes me believe it's too good to be true, which is why I'm asking your opinions.

And if you don't sell it?

If the sole purpose of doing this is to flip and make dosh, and you have no "Plan B" should your original plan not work out, e.g. like living in it yourself, I'd suggest you think very hard about it.

i.e. what happens if another repo in the same block hits the market when yours is on sale? Without knowing anything about the blocks etc- forgive me if it's not a likely scenario. How many others are currently up for sale? And at what prices? What are the leasehold fees while you wait for it to be sold?- some are eye-watering.

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Lurked on here since xmas but need some advice, hence first post.

We've come across a repossessed apartment (in very good condition) in arguable the most desirable building in a major city centre. It's asking price is 50k - 60k (30%) below it's market value. I found the market value from asking the Ea what it would be marketed at if it wasn't repo'd and checking previous sales on zoopler, the last two sales in Sep 12 where the same price as the Ea's estimate.

We're considering buying the apartment, cleaning it up and putting it back up for sale within about a month, essentially flipping it and pocketing the difference.

How feasible is this? I've worked out all the fees/costs involved and we'll stand to make a small fortune which makes me believe it's too good to be true, which is why I'm asking your opinions.

Think this sounds like a great idea. You should not hang around. How else can you make such great money.

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And if you don't sell it?

If the sole purpose of doing this is to flip and make dosh, and you have no "Plan B" should your original plan not work out, e.g. like living in it yourself, I'd suggest you think very hard about it.

i.e. what happens if another repo in the same block hits the market when yours is on sale? Without knowing anything about the blocks etc- forgive me if it's not a likely scenario. How many others are currently up for sale? And at what prices? What are the leasehold fees while you wait for it to be sold?- some are eye-watering.

The sole purpose IS to flip and make dosh (so we have a greater deposit for a place we'd like to settle down in) but as we're first time buyers, Plan B would be to live in it. The leasehold fees and service charges ARE eye watering truth be told, but with these costs included are total expenses will be about the same as they currently are now while renting.

Another repo isn't likely but never say never, in this scenario we'd wait for that repo to sell, then market ours a few months later. The current repo we're looking at was repo'd from the original owner who bought the apartment when it was first made 10 years ago, it's not one of those buildings that was knocked up in the buy to let craze.

Currently there are two others for sale (the building has 80 apartments total) the same layout as this one, and they are both priced at 18% more than this ones market value.

Thanks for replying by the way.

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I can't believe no-one else has thought of this. Please tell me the address so I can gazump you.

Of course, because it's a repo the Estate Agent will be obliged to re-advertise, complete with your agreed sale price. We'll all be able to see it and maybe gazump you at the very last minute, once you have spent money on searches, solicitors and trips to B&Q to pick up paint brochures.

Or maybe someone who views one of the +18% properties in the same block will spot it. What could possibly go wrong?

.................... we'll stand to make a small fortune which makes me believe it's too good to be true, .........................................

Methinks thou doth protest too little.

Edited by Stainless Sam

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The sole purpose IS to flip and make dosh (so we have a greater deposit for a place we'd like to settle down in) but as we're first time buyers, Plan B would be to live in it. The leasehold fees and service charges ARE eye watering truth be told, but with these costs included are total expenses will be about the same as they currently are now while renting.

Another repo isn't likely but never say never, in this scenario we'd wait for that repo to sell, then market ours a few months later. The current repo we're looking at was repo'd from the original owner who bought the apartment when it was first made 10 years ago, it's not one of those buildings that was knocked up in the buy to let craze.

Currently there are two others for sale (the building has 80 apartments total) the same layout as this one, and they are both priced at 18% more than this ones market value.

Thanks for replying by the way.

The BTL craze was going great guns by 2003:

http://www.guardian.co.uk/money/2004/feb/11/buyingtolet.business

Besides, there's no reason to believe that many of the original purchasers have not sold out to BTLers or MEWed since.

Your call obviously, but I wouldn't touch it with a bargepole, tempting as "free money" sounds.

Edited by cheeznbreed

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We looked at 2 repos in our target area in Surrey. Both were apartments (I'm disabled so fine with me).

The EA's worked to get the maxiumum price that they could. So they sold over the guide price originally give, Well below the original sale price. The EA said that he suspected that one property had been part of a money laundering deal or other illegal activity as the original sold price had been far higher than others in that area.

Both of these flats have been on the market repeatedly since they were sold that time. The price just gets higher and higher as they take it off the market, rent it out and then put it back on the market again. Flipping is not working for them.

I can't explain why you see other flats in the same development selling and registered by Sept 2012. I'd think about people who bought off-plan and then were legally committed to going through with the purchase even though property values had fallen.

My advice would be to look at the purchasers of those properties and see who lives there now, if anyone, and find out why they bought.

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  • 238 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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