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Triumvirate1

Landlord Loses 78k On Paddington Flat At Auction

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Flat 34

Braithwaite Tower,

Hall Place,

City Of Westminster,

London,

W2 1LP

sold for £250,000 in October 2002

and is currently let on an assured shorthold tenancy of £300 per week.

It sold in today's Barnard Marcus auction for

£172,000

a loss of £78,000.

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Flat 34

Braithwaite Tower,

Hall Place,

City Of Westminster,

London,

W2 1LP

sold for £250,000 in October 2002

and is currently let on an assured shorthold tenancy of £300 per week.

It sold in today's Barnard Marcus auction for

£172,000

a loss of £78,000.

£78K is pocket-change for Mr Buy-To-Let! ;)

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Still a HUGE loss though whether its pocket change or not!

No, it's a HUGE gain - as prices always go up. And they are still rising rapidly in London.

Mind you, I don't see any of this myself, though, and I live here. But, I must believe the Halifax and Nationwide - they are the experts. :D

Nomadd

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Worse is to come. That is still not the sane market price for a sensible BTL business man (which is somewhere between £144,000 and £120,000 assuming that there is no service charge). Given a 200 a month service charge it could be nearer to £120,000 to £100,000 and I'm sure the service fee will be greater than that.

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Still a HUGE loss though whether its pocket change or not!

Not wrong.

Now what this blog needs is an emoticon for someone who, to use a US phrase, has just taken one in the shorts. I suppose the closest is :o .

:D

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Flat 34

Braithwaite Tower,

Hall Place,

City Of Westminster,

London,

W2 1LP

sold for £250,000 in October 2002

and is currently let on an assured shorthold tenancy of £300 per week.

It sold in today's Barnard Marcus auction for

£172,000

a loss of £78,000.

Are you sure he didn't divide it up, and he still owns Flat 34A?

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By comparing the yield to a benchmark of 5% the flat is worth 300,000.

It's let on an Assured Shorthold Tenancy at 300 per week. That's about 15,000 a year.

If 15,000 is 5%, then the value is 300,000

(divide the income by 1/20 or to put it another way, multiply the income by 20).

So selling at 172,000 actually puts it down about 40% in value.

Compare that fall to the Nasdaq which went down 60% from the peak,

so using this flat as an indicator,

the market hasn't reached bottom yet.

---------------------------------------------------------------------------

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By comparing the yield to a benchmark of 5% the flat is worth 300,000.

It's let on an Assured Shorthold Tenancy at 300 per week. That's about 15,000 a year.

If 15,000 is 5%, then the value is 300,000

(divide the income by 1/20 or to put it another way, multiply the income by 20).

So selling at 172,000 actually puts it down about 40% in value.

Compare that fall to the Nasdaq which went down 60% from the peak,

so using this flat as an indicator,

the market hasn't reached bottom yet.

---------------------------------------------------------------------------

Notice that it sold for 220k on 11/07/2002 resold for 250k on 25/10/2002, so it rose 10k a month in that time, very nice!

Edited by kman

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Funny how when you get a nice, juicy piece of REAL EVIDENCE of what is actually happening out there - you never get a post from our resident bulls.

I wonder what TTRTR's and London Landlady's take on this is.

Perhaps there was a terrible blizzard and power cut and only 1 person attended the auction - and he was too stupid to start with a lower opening bid!

I mean there must be some explanation for this sale which confounds the inverse law of gravity that says property prices, like hot air, must always rise.

Anyone got an email address for that dopey tart who writes for one of the sunday rags - I'd like to send her this and ask how this squares with her world view that people like her have a divine right to own half a dozen BTLs in London that always go up in value and which provide her, and her ilk, with a piggy bank to endlessly dip in to fund their darling lifestyles.

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  • 301 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
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