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Here Is How To Maximise (Attempt At Least) On A Property

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Spotted on Rightmove. Slap bang on the Kenton Road which is a heavily trafficked A road. Among bedsits, HMOs, and hostels, a ground floor flat with an asking price of £450,000. Whole house was bought in 2002 for 230k in April 2002. Converted into three flats last year. So at listed price if the other flats are similarly priced profit is going to be very healthy.

http://www.rightmove.co.uk/property-for-sale/property-45258392.html

Fingers x it goes tits up.

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I wonder what was going through their heads when they decided black radiators were a good idea.

Edited by Smyth

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I wonder what was going through their heads when they decided black radiators were a good idea.

Presumably installed to give it that contemporary 'chic' look, and to distract would-be purchasers. Given the price I think one should really expect to see Gold-plated radiators.

So it has undergone a refurbishment - not to my or , i hope, most people's taste. But what stuns me is how ambitious the asking price is for a fairly modest sized 2 bed, even on more desirable streets on the Hill Vendors haven't been asking this sort of figure. If this price is achieved silly prices have arrived, because this as the floor price for flats in Harrow is a j/choke. What is being bought however much it is tarted up is smallish home on the main road.

It seems that prices are no longer being set in comparison to a local market but by reference some overall London market. And vendors are looking to make equally sizeable appreciations wherever they are. The ruthless drive to up prices, everywhere.

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It seems that prices are no longer being set in comparison to a local market but by reference some overall London market. And vendors are looking to make equally sizeable appreciations wherever they are. The ruthless drive to up prices, everywhere.

It's simply the arrogance of property investors and landlords.

They are still convinced that they call all the shots and that tenants and buyers purely exist as instruments to assist in their investments.

This has resulted in many pretty much losing the plot failing to understand that the market can decide against them if it wishes, regardless of whether that results in them making huge losses.

A few months back I may have said something different but this is a sad time for property investors: noone wants their overpriced properties and the more they desperately try, for one last time, to squeeze "value" out of their investments, that is not there, the more the fall is going to be more painful as a true panic will set in: it won't be a matter of people realising that properties are 5% overvalued. Once potential buyers realise that noone else is interested in overpriced properties, sellers will be scrambling desperately to convince these buyers.

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It's simply the arrogance of property investors and landlords.

They are still convinced that they call all the shots and that tenants and buyers purely exist as instruments to assist in their investments.

This has resulted in many pretty much losing the plot failing to understand that the market can decide against them if it wishes, regardless of whether that results in them making huge losses.

A few months back I may have said something different but this is a sad time for property investors: noone wants their overpriced properties and the more they desperately try, for one last time, to squeeze "value" out of their investments, that is not there, the more the fall is going to be more painful as a true panic will set in: it won't be a matter of people realising that properties are 5% overvalued. Once potential buyers realise that noone else is interested in overpriced properties, sellers will be scrambling desperately to convince these buyers.

Logically, you would think so wouldn't you? There are so many cast iron reasons why prices should or ought to fall. The thing is people have been forecasting the arrival of a bloodbath on house prices going back years, but it hasn't materialised. I follow the market and I would say sales were pretty sticky until the autumn of 2013 from which point there was a bit of surge. Yet even though there has been a quicker turn-over of inventory, there are still a lot of properties I see that sit on the market for ages. Sometimes they are dual marketed for rent and sale, occasionally the slip out and back into the market a few months later at even more unrealistic asking price. What I don't see is any sign of a fire-sale and a charge to get out of property.

So tell me when this rigged market is going to find its 'genuine'level?

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So tell me when this rigged market is going to find its 'genuine'level?

Not sure the "genuine" level will ever be reached. There is usually a consensus that based on the number of buyers and sellers, their desire to purchase and their desire to sell, their purchasing power, there is an instrinsic value for any asset.

However, human emotion is so much a factor in property that prices fluctuate far more than they would for most other assets: they can be significantly higher or significantly lower than the "true" value yet that true value remains and can never be ignored.

In my opinion (which is not worth that much!), the London market has been such that a soft landing no longer looks possible. People have become so accustomed with high rates of return that a sudden stabilisation will result in a panic where in other markets, people would just sit still. When investors were expecting 10% y/y and suddenly only 5% is being realised, there will be a massive rush for the exit.

The mainstream media tends to be behind the curve on most economic matters and the claims that prices were up in February by more than 10% y/y look wrong and the figures have been analysed in a way that suits certain people. The fact is, that growth rate has slowed down during that period yet this is not reported on...

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