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ianbeale

Bargain Tempting Me In Should I Go For It

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Hi

I have been away a few years but need some advice as tomorrow is d day

I have come across a luxury town house with sea views that someone paid 400k for in 2006 and with 4 other identical units going for between 350 and 400 at or around the same time this looks like solid data and one sold for 330 k in 2011 .the one I am looking at has subsequently been repossessed and I have it on good authority that 250k will do it. They rent at about 1150 pcm. What do you guys think. Seems to good to be true or is it a gift horse.

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Do they have regular ice cream vans going past? That'll increase the wow factor

Offer double

:D

OP does not give sufficient info for opinion. One minute he mentions 'house', next 'units'. I always thought a unit was a flat or 'appartment'. :blink:

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Hi

I have been away a few years but need some advice as tomorrow is d day

I have come across a luxury town house with sea views that someone paid 400k for in 2006 and with 4 other identical units going for between 350 and 400 at or around the same time this looks like solid data and one sold for 330 k in 2011 .the one I am looking at has subsequently been repossessed and I have it on good authority that 250k will do it. They rent at about 1150 pcm. What do you guys think. Seems to good to be true or is it a gift horse.

Sounds like fair value, but i) do you want to live in it and ii) is owning it a better economic decision for £250k - whether your own the money or borrow it. Is it better value than renting a place to live. i.e. will you live in the house long enough to consider the losses of EA fees, stamp duty and maintenance costs, mortgage interest payments or the costs of having your capital tied up, as a fair depreciation cost compared to the costs of renting and having your capital for other purposes.

Personally, my view is that if you only plan on living in it for a few years it's probably not worth it, economically. Find a decent long term rental - unless you are worried about having 250k in the bank.

IMO, prices aren't going up and so you might as well wait - After all, if someone else buys it for 250k all the other similar properties are just worth £250k when they come onto the market - get one of those iof you still want to live in the area by then

Or are you buying it to let it for an 'income ? If so, do you want the hassle ?

When house prices were going up I can see that some might have perceived an urgency to buy - But now ?

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Your rent figure tells me it's 45 percent above bargain territory

But, if it's special to you then get a2nd opinion taking a friend on a viewing, get a good survey, and buy it

If for btl them avoid

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Seriously other props that rent for 1150 sell for 300k plus here (exeter) so 250 seems like bargain teritory to me. I can only think that the repo stigma has put others off. The offer goes in tomorrow.......the worry is that I dont really like it and am just taking a punt to spruce it up and sell it on before the cheap cash drys up after the next election. Also band f council tax which is a bit steep but would back up a 300k valuation

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Hi

I have been away a few years but need some advice as tomorrow is d day

I have come across a luxury town house with sea views that someone paid 400k for in 2006 and with 4 other identical units going for between 350 and 400 at or around the same time this looks like solid data and one sold for 330 k in 2011 .the one I am looking at has subsequently been repossessed and I have it on good authority that 250k will do it. They rent at about 1150 pcm. What do you guys think. Seems to good to be true or is it a gift horse.

If that is indeed what they rent for then you could be looking at something for fair value. Of course not knowing the area or your personal position make it hard to judge if its right for you.

I say if you like it and want to live in it to a grand old age then go for it. However if you are looking to make a quick buck, then leave it.

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Those last two posts have made me want to stab my eyeballs out with a blunt fork

Nothing personal

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