One For The Bulls

[andrew_uk]

My sister decided to put her house on the market. Knowing how stressful selling can be especially in a buyers market I did a big job of lowering her expectations.

She agreed especially as two doors up (owned by an estate agent) was put up for 10K more than ceiling price (set 2 months ago). She even said "I don't expect it to sell at that, the're being greedy".

So imagine my surprise that 5 days later I'm told the EA has sold with only a slight (2.5K) reduction in price and my sister has a viewing in 3 days time.

I know that sold means nothing till the cash has been paid but it's made me think we've got a little carried away. Good proerty in a nice area is still selling quickly even if a bit over priced.

Just making sure our anecdotals are balanced...........

Andrew

[bearwithaconscience]

Houses that have been on the market for months/years here (Sutton, Surrey) are now all sold. On FindaProperty there are very few places still for sale. I am hoping this is a dead cat bounce...

[andrew_uk]

A bullish update:

It worries me that bearish articles get many replys but bullish articles are ignored. I am a bear but also know I could be completely wrong.

My sister has now sold her house. she had quite a few viewings and was offered 2K less than asking, turned it down and later got offered full asking price from a BTLer.

She has found a nice house and made an offer that was accepted.

So in 2 weeks she has sold at full asking price and bought. I know that sold is not sold until the money is transfered but in this case I expect the sale to proceed.

So my personal experience is that houses are still selling and there's still money to be made in property.

On a bearish note: My friend who has some economic knowledge but has great instincts tells me to expect things to come to a head mid August. this was before the invasion of Lebanon but he based this on economic stories he had read (He likes to read all newspapers as it gives a broad idea of the direction things take).

[backtoparents]

Hi Andrew,

What might make this a really great anecdotal is knowing what rental price your sister's property will make.

As you say though, properties are selling and being bought at asking price. Did your sister pay full asking price for the new place?

All anecdotals appreciated.

btp

[billy-g]

Good to see a different side of the coin getting appreciated. I have a similar experience; the Wife and I decided to sell one of our BTL's to fund another (totally seperate from property) project. Despite needing upgrading, it sold at a well above the asking (remember, we have the offers over system here in Scotland) and within 5 working days. Also, we recently put the house we ourselves lived in onto the market as we have bought a bigger property. We moved into this new house nearly three months ago, but with the arrival of our baby daughter, we had not had the time to get the old place on the market. It has now been on for two weeks resulting in plenty of viewings and one offer which is completing this week. Again, for well above asking. Draw any conclusions you wish, and label the above examples any way you wish, but there it is. And yes, I have no issues with giving out postcodes etc for verification if asked to do so via PM.

[SCUMBAG]

I see a lot of Sold signs around lately. I do wonder who is buying them all. Even in a falling market people buy and sell. People already on the ladder must be trading between themselves playing pass the parcel. When you consider the amount of people who got on the ladder before all this really kicked off in 2000 then it's most likely.

[billy-g]

Maybe so Scumbag. I know both of mine went to first time buyers though.

[andrew_uk]

Hi Andrew,

What might make this a really great anecdotal is knowing what rental price your sister's property will make.

As you say though, properties are selling and being bought at asking price. Did your sister pay full asking price for the new place?

All anecdotals appreciated.

btp

Knowing the rental market (I rent so check around every 6 mths). The probable yield is: 5%

This assumes 1%/pa maintainence and a void period of 1 month in 12 and no agency/advertising fees.

In reality ignoring maintenance and void periods which most BTLer's do it's 6.5%. But it depends on what they ask for as rent. My calculations assume they price the rent slightly below designer flats that cost 50K more.

My sister did not pay full asking price she got 4K knocked off. But she told me she would've paid full asking price as she is a damned fool (She'd fallen in love with the house) . Luckily the seller is equally poor at negociating and told her that he had accepted a lower offer but they still had to find a buyer so she could have it at the same price (e.g. 4K knocked off).

[Guest donall]

Billy,

I'm up in Scotland as well and the market here is; because of the offers over system, a bit more coplicated.

I think that the prices here are relatively low to make buying better than renting but i wouldn't dream of BTL with as someone mentioned yields being so low.

I bought my flat for 92k and it would cost £500 to rent. SO i reckon that that was ok. That was last dec.

You can find property that is good value (esp. in Scotland) but to BTL would be madness especially if you factor in voidage which is a big problem in places like Leeds which have a glut of 1 bed apartments (so i am told)

For those of us who are looking for somewhere to live and not income to retire on we should not be affected too badly by a downturn.