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BillyShears

Fixer Upper

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This house is on sale. It's definitely a fixer upper. No central heating, house needs rewiring, bathroom and kitchen "dated".

http://www.rightmove.co.uk/viewdetails-118...pa_n=2&tr_t=buy

Looking at nethouseprices.com, semis in the road have only sold rarely, but terraced houses in the same road have been selling for 160K recently and this one is on for 125K.

Made me think a bit. If the housing market has cooled a bit, as it certainly has around here, that might mean that fewer people would do thei houses up before selling, as there is much less perceived chance of getting a market top price. So, they'd sell them as is. If the amount of "development/upgrading" going on before sales goes down (and the money being spent at B&Q and similar fallling is indirect evidence that this might be happening) then that makes me think that the following might happen. Even if actual house prices stayed the same, so that the same condition house was selling for the same price, if fewer houses are done up before sale then recorded sale prices will fall due to the lower average "quality" of houses being sold. The converse will apply if doing houses up before sale becomes more popular.

Comments? Or will this thread die a premature death like my "how many people die" one :(

Billy Shears

Edited by BillyShears

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All but one of the houses that have been 'sold' around here lately either have builders 'fixer-uppering' right now, or had them in before. Not sure whether there are real new owners having them fixed up, whether the sale fell through and they decided to 'fix it up' before trying again, or whether they were just bought by speculators in the hope of making a quick profit.

I thought all the fiser-upers had been "fixed up".

But it's much easier to turn a decent house into a 'fixer-upper' than to fix up a fixer-upper. Just smash the place up a bit and add 10k to your price.

Edited by MarkG

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This house is on sale. It's definitely a fixer upper. No central heating, house needs rewiring, bathroom and kitchen "dated".

http://www.rightmove.co.uk/viewdetails-118...pa_n=2&tr_t=buy

Looking at nethouseprices.com, semis in the road have only sold rarely, but terraced houses in the same road have been selling for 160K recently and this one is on for 125K.

Made me think a bit. If the housing market has cooled a bit, as it certainly has around here, that might mean that fewer people would do thei houses up before selling, as there is much less perceived chance of getting a market top price. So, they'd sell them as is. If the amount of "development/upgrading" going on before sales goes down (and the money being spent at B&Q and similar fallling is indirect evidence that this might be happening) then that makes me think that the following might happen. Even if actual house prices stayed the same, so that the same condition house was selling for the same price, if fewer houses are done up before sale then recorded sale prices will fall due to the lower average "quality" of houses being sold. The converse will apply if doing houses up before sale becomes more popular.

Comments? Or will this thread die a premature death like my "how many people die" one :(

Billy Shears

Snap!!

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I thought all the fiser-upers had been "fixed up".

Well this one certainly hasn't been. It's not as bad as one property for rent that I saw once. The entire back garden was full of brambles with the stems thick and woody. Imagine chopping through that lot.

I did think that the top property has one feature I actually find attractive. It has a reasonable garden. So, if it needs work, part of the work can be to install one of those ground heat exchange pump things. That would supply cheap heating, part of the cost would need to be spent anyhow, and reduced energy bills over the years would make it pay for itself anyhow.

Billy Shears

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Guest Baffled_by_it_all

They're definitely pretty scarce in London.

It's nauseating yellow laminate flooring, magnolia emulsion and cheap white bathroom suites everywhere I go. Fine but there's a whacking premium put on the price. You'd think Jasper Conran had been round.

After the Rapture though at least it means there's less decorating to do.

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Maybe someone will buy it, and spend 20K on a full modernisation. They'll market it for 70K more, keep dropping their price until it sells at 10K more. And everyone will think that house prices have gone up yet again.

Edit: What's the current status on terrified's house that the mortgage advisor bought?

Billy Shears

Edited by BillyShears

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It's nauseating yellow laminate flooring, magnolia emulsion and cheap white bathroom suites everywhere I go.

Don't knock it: five years from now they'll be the new fixer-uppers. Magnolia walls and laminate flooring will knock 20k off the price.

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Maybe someone will buy it, and spend 20K on a full modernisation. They'll market it for 70K more, keep dropping their price until it sells at 10K more. And everyone will think that house prices have gone up yet again.

Edit: What's the current status on terrified's house that the mortgage advisor bought?

Billy Shears

That is a damn good point. I can't believe this hasn't come up before on HPC.co.uk.

frugalista

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They're definitely pretty scarce in London.

It's nauseating yellow laminate flooring, magnolia emulsion and cheap white bathroom suites everywhere I go. Fine but there's a whacking premium put on the price. You'd think Jasper Conran had been round.

After the Rapture though at least it means there's less decorating to do.

I hate laminate flooring, it used to be beige berber carpet, magnolia walls and B&Q bathrooms in square plasterboard rooms. Cheap to do but puts more than £1000 on the price.

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Billy,where`s Anstey?

It's a village on the outskirts of Leicester. I live between the Anstey road which goes out to Anstey from the centre of Leicester, and the Groby road which goes out to a similarly sized village Groby. It's a place where we seriously considered living when we moved here from London.

Billy Shears

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It's a village on the outskirts of Leicester. I live between the Anstey road which goes out to Anstey from the centre of Leicester, and the Groby road which goes out to a similarly sized village Groby. It's a place where we seriously considered living when we moved here from London.

Billy Shears

Not been up that way for a long time but as I recall there are some nice semi-rural places around there.Here in Devon any village property is so very over priced.

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things that lead me to believe the market is done for around here are the number of fixer uppers and repos appearing in the local rag - the f.u.s never used to make the paper but there are ow 4 or 5 a week appearing - HOWEVER - in the good old days these used to be cheap, you did them up and took the profit for your effort - these days the price seems to be based upon 'it would be worth x in a good condition, it will cost y to get it there so the asking price is x-y' i.e. no profit margin for your efforts - maybe this is why they are appearing more?

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I would be more than happy to buy a shell with a roof but those seem to go for £200K plus in Irby for example.

The thing that constantly amazes me is that vendors put in a new kitchen, bathroom and paint everything cream before even having a valuation now, it's as if they've all been brain washed :rolleyes:

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It might be relevant - my parents in their 60-70s have decided to downsize.

They have a large victorian property which needs work.

EA bro' advised put on the market now for quick sale - don't bother doing up - will get a wider base to sell to - developer who'll see opportunity - and those with money - who'll do it the way they want it or fall in the trap thinking they can flip it and make a profit.

Seems the advise was, in this market for upper properties, they could spend money doing it up they may not recoup.

Things are changing slowly .... top end first?

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things that lead me to believe the market is done for around here are the number of fixer uppers and repos appearing in the local rag - the f.u.s never used to make the paper but there are ow 4 or 5 a week appearing - HOWEVER - in the good old days these used to be cheap, you did them up and took the profit for your effort - these days the price seems to be based upon 'it would be worth x in a good condition, it will cost y to get it there so the asking price is x-y' i.e. no profit margin for your efforts - maybe this is why they are appearing more?

This is typically how I see the average figures on fixer uppers crunching in the N.W....place for sale for 85K, needs 15K spending on it (perhaps 20K if you`re not experienced) stands you in 100K. Sale price of most expensive on road within last twelve months 130K, you sell for 125K, or occupy...I see this happening regularly. Yes if that there crash comes along your 30K/ 30% equity may be wiped out, you`ll still have a £500 a month mortgage... <_<

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Anstey is a nice part of Leicester (yes there are nice parts :) ), doesn't sound like a bad one Billy if you don't mind the work.

If it were on for 100K rather than 125K I'd actually be seriously interested.

Billy Shears

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Thanks for raising this issue Billy, I`m always pissed off that more FTBs don`t buy fixer uppers at auction. Not a solution for everyone but an opportunity never the less <_<

I've only been to one auction, and there were plenty of fixer uppers for sale. However, the reasoning at that time seemed to be "it'll be worth £x in good condition, it'll take £y to get it there, so I'll bid £z which is more than £x because ... erm, I seem to have let myself get carried away a bit there."

Why don't you offer £100k then, they can only say no

That is a point, but then I'd have to consider what would happen if I got it. I've only just renewed my 6 month AST. Since I'd be offering well under the asking price and way way under market price for the area, I can let the property stew for a bit and see if it sticks on the market. I'll think about it.

Billy Shears

Edited by BillyShears

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Thanks for raising this issue Billy, I`m always pissed off that more FTBs don`t buy fixer uppers at auction. Not a solution for everyone but an opportunity never the less <_<

well many FTB's find the whole auction thing intimidating plus many mortgage lenders won't lend to FTB's on auction propertys.

My other issue is with everything being done up, i really don't like the whole modern/ikea look and for me i would be buying somewhere that's been done up but to a style i don't like!

also with these developers, some just choose the cheapest and nastiest styles..like the seashell bath suite i've seen in so many properties! actually one property i tried to buy 2 years ago had been fitted up but to such bad standard when the survey came through it highlighted there was terrible damp on 3 of the main walls and that the kitchen would need to ripped out to fix the damp!!

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I've only been to one auction, and there were plenty of fixer uppers for sale. However, the reasoning at that time seemed to be "it'll be worth £x in good condition, it'll take £y to get it there, so I'll bid £z which is more than £x because ... erm, I seem to have let myself get carried away a bit there."

That is a point, but then I'd have to consider what would happen if I got it. I've only just renewed my 6 month AST. Since I'd be offering well under the asking price and way way under market price for the area, I can let the property stew for a bit and see if it sticks on the market. I'll think about it.

Billy Shears

the auctions are changing adapting v. quickly to slimmer pickings and are very much a focal sales point, my contacts suggest the best deals are done pre and post sale. Easy for developers as they don`t get too set/fixated on a particular property..

well many FTB's find the whole auction thing intimidating plus many mortgage lenders won't lend to FTB's on auction propertys.

My other issue is with everything being done up, i really don't like the whole modern/ikea look and for me i would be buying somewhere that's been done up but to a style i don't like!

also with these developers, some just choose the cheapest and nastiest styles..like the seashell bath suite i've seen in so many properties! actually one property i tried to buy 2 years ago had been fitted up but to such bad standard when the survey came through it highlighted there was terrible damp on 3 of the main walls and that the kitchen would need to ripped out to fix the damp!!

I don`t see why it should be intimidating, here`s some good advice needs updating a bit ;)

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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
      • up 2.5%
      • up 5%



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