The greatest thread of all...The BTL running for the exit thread

[Exiled Canadian]

Just now, Bland Unsight said:

Prices are nuts, but that £3.8m is for six of them.

Here's a property offered for sale on its own in the same development. A 2-bed, went on the market at £775,000 on 23rd Feb 2016 (according to Zoopla), now at "offers over £699,999".

The Land Reg sales for the properties are dated May 2014; here's the developers website for the development.

Ahhh....I have to say that even by London terms I thought that £3.8m for a one bed flat in Greenwich was steep.

 

That being said I'd still buy the York place and live off the £3m at the rate of £50k pa for the next 60 years......

[anonlymouse]

1 hour ago, Bland Unsight said:

The title of this City AM article has a nice ring to it:

Quote

New stamp duty rules are causing landlords to sell up in droves

Tuesday 25 April 2017 

Letting agents have warned harsh new rules targeted at buy-to-let homes are driving landlords out of the market.

Figures published today by the Association of Residential Letting Agents (Arla) showed the number of landlords selling up rose to four per letting agent branch in March, from three in February.

More at the link.

Oh that's simply beautiful news, exactly what I needed to hear. Maybe I'll give the estate agent a call tomorrow to see if my 'insultingly low' offer has become any more attractive.

[Bland Unsight]

24 minutes ago, adarmo said:

Thank you. TBH I've been following for a while and have especially enjoyed your deconstruction of RushRoad.

Noted on keeping threads pure. 

Well, after a lengthy discussion with my psychiatrist, which involved a lot of soul-searching and an incident with a pocket watch that swung backwards and forwards in a most distracting manner, I discover that I have sincere regrets regarding my discussions with Mr Road. Honestly, nobody is more surprised about this than I am.

Apropos of my consultation with the head doctor, I have elected to go along with the shrink's suggestion that we adjust my medication and I have also shelled out for a swear jar. 

I feel that it's really important that we keep a totally open mind about the many new posters joining the forum at this exciting time.

Edited April 25, 2017 by Bland Unsight

[Bland Unsight]

30 minutes ago, Exiled Canadian said:

Ahhh....I have to say that even by London terms I thought that £3.8m for a one bed flat in Greenwich was steep.

Little bit more on the development in this FT piece - google "Rundown estate transformed in Greenwich makeover", link for subscribers.

Seems Galliard bought the site in 2007 after it had been derelict for a century. Oddly had only managed to sell "500 of the 636 private apartments" by May 2013, according to the FT.

I wonder what slowed up the build out?

Edited April 25, 2017 by Bland Unsight

[Bland Unsight]

30 minutes ago, Exiled Canadian said:

That being said I'd still buy the York place and live off the £3m at the rate of £50k pa for the next 60 years......

You're bonkers EC, looks like the 2-beds on that development are getting you a 3% yield, hardly megabucks, but that may improve if the rents fall slower than the prices.

Let's buy the lot and rent 'em out, innit.

Once we're minted from the dabble in London real estate, then you can buy up the place in York.

Edited April 25, 2017 by Bland Unsight

[Ah-so]

2 hours ago, Bland Unsight said:

Little bit more on the development in this FT piece - google "Rundown estate transformed in Greenwich makeover", link for subscribers.

Seems Galliard bought the site in 2007 after it had been derelict for a century. Oddly had only managed to sell "500 of the 636 private apartments" by May 2013, according to the FT.

I wonder what slowed up the build out?

I remember the radio adverts put out by Galliard during the crisis - "we have been instructed by our bankers to sell our properties at massive discounts".

It was an unusual and innovative advert. But presumably they were unable to develop a lot of land for many years. I guess this is what you are getting at.

But they have been pumping out new developments since about 2012. And people keep buying them. I guess most are BTL. 

[SE10]

4 hours ago, Dyson Fury said:

I liked the "Ground rent £350 per year".  That is 1% of 1% of the asking price.  Or, 100 parts per million.  I'm used to seeing figures of 100ppm in the context of chemical analyses of pollutants, but not ground rents.  Probably, there's a clause that doubles the ground rent every month or so....

Per unit, so 6 x £350 to start.

[Ah-so]

2 hours ago, Bland Unsight said:

I feel that it's really important that we keep a totally open mind about the many new posters joining the forum at this exciting time.

Indeed. The wheat gets sorted from the chaff soon enough. 

[Bland Unsight]

3 minutes ago, Ah-so said:

But they have been pumping out new developments since about 2012. And people keep buying them. I guess most are BTL. 

Lots of BTL? Probably. How much backed by loans from UK lenders? I'd love to know that.

[SE10]

3 hours ago, Bland Unsight said:

From the link:

Also from the full details link at the link, this:

Spotters's badge for anyone identifying the subtle difference between the accompanying text here compared to the rightmove summary.

The word reduced? My original screenshot was taken using Chrome, but now revisited using FF and Property Bee.

Originally listed 30/06/2016 for £7,355,000. Someone's retirement is accelerating off into the future at a heady rate as the asking price has so far dropped 47%...

[SE10]

Just now, SE10 said:

The word reduced? My original screenshot was taken using Chrome, but now revisited using FF and Property Bee.

Originally listed 30/06/2016 for £7,355,000. Someone's retirement is accelerating off into the future at a heady rate as the asking price has so far dropped 47%...

Ah damn, just noticed - it was originally 11 apartments.

[Bland Unsight]

1 minute ago, Ah-so said:

Indeed. The wheat gets sorted from the chaff soon enough. 

It does presently look to be a play in three acts, with s24 being the denouement of act two.

Exit pursued by bear?

[billybong]

The £3.85 million for one 1 bed flat seems to be a case of pushing the price perception sales trickery.  

It might be for a number of flats but after seeing the £3.85 million figure apparently for one flat then in comparison £700,000 might look really really cheap even though it's still overpriced by a factor of at least 4 times.

Unfortunately that's the level the UK has descended to.

 

Edited April 25, 2017 by billybong

[Bland Unsight]

1 hour ago, SE10 said:

The word reduced? My original screenshot was taken using Chrome, but now revisited using FF and Property Bee.

Spotter's badge duly awarded!

[crazypabs]

Quote

Burning down the house

Buy-to-let was one of the hottest investments of the last two decades but has fallen victim to its own success, after former Chancellor George Osborne spotted its cash cow potential. He also saw it as a vote winner: cracking down on amateur landlords allowed him to pose as the first-time buyer’s friend.

http://www.fool.co.uk/investing/2017/04/25/buy-to-let-is-dead-but-stock-markets-are-alive-and-kicking/

[crazypabs]

Quote

Landlords sell up as buy-to-let tax hikes start to bite

Posted on April 26, 2017 by Stephen Little in Buy-to-let, News with 0 Comments

Landlords are selling up in droves as government policies designed to reign in the buy-to-let market start to eat into their profits.

http://www.whatmortgage.co.uk/news/landlords-sell-buy-let-tax-hikes-start-bite/

[Kent Ambitions]

Just to add my anecdotal hat into the ring. 

I've been trying to buy a house in Canterbury City Centre for over a year, and it has become noticable 'easier' as a first time buyer in the last few months. Less 'cash investors' / landlords to compete with.

In fact, I have agreed a sale on a property at 7.5% below asking price and only after the agents proactively marketed it to BTL/'investors' without success. This is a massive difference on a year ago when FTB'ers were not getting a look-in.

[BorrowToLeech]

15 minutes ago, Kent Ambitions said:

Just to add my anecdotal hat into the ring. 

I've been trying to buy a house in Canterbury City Centre for over a year, and it has become noticable 'easier' as a first time buyer in the last few months. Less 'cash investors' / landlords to compete with.

In fact, I have agreed a sale on a property at 7.5% below asking price and only after the agents proactively marketed it to BTL/'investors' without success. This is a massive difference on a year ago when FTB'ers were not getting a look-in.

I'd be very careful if I was you, and I was buying in an area with lots of landlords.

You should be aware that landlorded houses cease to exist the moment they stop being owned by a landlord.  

Worse, since we know for a fact that landlords do not compete with first time buyers, you may cease to exist at the exact same moment, although the details are unclear. 

[Longtermrenter]

22 minutes ago, Kent Ambitions said:

Just to add my anecdotal hat into the ring. 

I've been trying to buy a house in Canterbury City Centre for over a year, and it has become noticable 'easier' as a first time buyer in the last few months. Less 'cash investors' / landlords to compete with.

In fact, I have agreed a sale on a property at 7.5% below asking price and only after the agents proactively marketed it to BTL/'investors' without success. This is a massive difference on a year ago when FTB'ers were not getting a look-in.

Welcome to HPC - I am in Canterbury environs too.

[rantnrave]

56 minutes ago, DrBuyToLeech said:

I'd be very careful if I was you, and I was buying in an area with lots of landlords.

You should be aware that landlorded houses cease to exist the moment they stop being owned by a landlord.  

Worse, since we know for a fact that landlords do not compete with first time buyers, you may cease to exist at the exact same moment, although the details are unclear. 

[BeePee]

1 hour ago, Kent Ambitions said:

Just to add my anecdotal hat into the ring. 

I've been trying to buy a house in Canterbury City Centre for over a year, and it has become noticable 'easier' as a first time buyer in the last few months. Less 'cash investors' / landlords to compete with.

In fact, I have agreed a sale on a property at 7.5% below asking price and only after the agents proactively marketed it to BTL/'investors' without success. This is a massive difference on a year ago when FTB'ers were not getting a look-in.

Another Canterbury based fellow here too. I have noticed an influx of rentals coming to the market and am very interested to see how this plays out. Especially considering the amount of rentals, many of them student lets. Add to this the influx of 'student hall' type dedicated accommodation coming forward too. 

[BeePee]

An example:

http://www.rightmove.co.uk/property-for-sale/property-46974072.html

Bought for £230k last November and attracting no attention at £240k for the last 6 weeks....

[Locke]

36 minutes ago, Bronson said:

Another Canterbury based fellow here too. I have noticed an influx of rentals coming to the market and am very interested to see how this plays out. Especially considering the amount of rentals, many of them student lets. Add to this the influx of 'student hall' type dedicated accommodation coming forward too. 

 

Makes you think about the valuations. Aside from the sheer volume of stock which is going to come onto the market, like cars, I would assume the value is lower than if it had been an OO house. The general state is likely to be poor, badly maintained gardens, possible replacing of floors where water pipes have failed, terrible internal structure due to living space being repurposed for sleeping areas chasing yield.

What BTL scum see as a "5 bed near local amenities and stone's throw from the university" might be a "3 bed with loud local vandals in need of serious reworking"

In other words, is the stock not likely to almost all be "do-er uppers"?

[Kent Ambitions]

42 minutes ago, Bronson said:

An example:

http://www.rightmove.co.uk/property-for-sale/property-46974072.html

Bought for £230k last November and attracting no attention at £240k for the last 6 weeks....

Yes, there are definitely two markets in Canterbury - one for nice family homes, and the other for BTL student lets (with as many bedrooms crammed in as possible).

The former are still selling strongly in my experience - nice period family homes, well decorated etc seem to get snapped up very quickly. However there is a LOT of ex BTL stock coming on the market, often in ugly buildings in a poor state of repair. However it does not seem to be impacting the 'family home' market, even though there are a lot of price reductions on ugly BTL student housing stock.

My guess is that, until the BTL houses drop considerably to a level where it's significantly cheaper to buy and ex-BTL property and then convert it to a family home, than it is buy a nice family home outright, then the two markets won't impact on each other.

[Longtermrenter]

Oops - missed these selloffs in my inbox as well:

 

46-66 (EVEN) STANLEY ROAD, CHEADLE HULME, CHEADLE, SK8 6PN

An unbroken freehold residential investment comprising 11 self-contained flats Freehold Unbroken residential block 11 self-contained flats Nine flats subject to Assured Shorthold Tenancies (eight holding over on a Periodic Basis) Total Rent Reserved: £62,400 per annum Estimated Rental Value (fully let): £72,000 per annum Gross Yield: 7.38% (based on ERV) Offers in excess of £975,000 are invited, subject to all existing tenancies, subject to contract

 

DRILL HALL, UNION STREET, HALIFAX , HX1 2LS

A listed unbroken freehold residential investment comprising 27 flats and associated car parking Freehold Listed unbroken residential block 27 self-contained flats (9 x one bed and 18 x two bed) Subject to 16 Assured Shorthold Tenancies and nine Company Lets Two vacant flats - both currently under application Total Current Rent Reserved: £130,920 per annum Estimated Rental Value: £141,720 per annum A total of 22 secured gated car parking spaces Gross Yield: 8% (based upon ERV) Offers in excess of £1,750,000 are invited, subject to all existing tenancies, subject to contract