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Scott Mills

Problems In S.e London Suburbs

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I just thought I’d share my anecdotal.

I STR in early April this year (house went on the market in November 2007, "sold" Jan 2008 and completed in April).

I had a number of Agents around and it was valued between 380-410. I went with the agent who suggested the lowest price and was very frank with him regarding my expectations (it was obvious the market was toast). At their peak ‘reasonable but not mint ones’ would sell for 370ish. Rental income would be £850-900 per month before voids.

I got 4 offers ranging from 320k to 360k and I finally managed to push the last people up to 370. My house was completely refurbed over the last 2 years (I’m a crazy DIY’er) - with new heating, replastering, kitchen, bathroom & driveway all done.

Now for the shocking it. It was a 2 bed semi - reasonable garden but no garage and a downstairs bathroom. 370k for a 2 bed semi! Ok, I paid 270k for it in 2006 - damn bull trap – I had previously STR in 2005. Thankfully I managed to take 50k off the initial marketing price as I was able to close it in 3 weeks.

The house opposite mine was put up for sale in April. This needs a lot of work (15-20k maybe) but has a garage. It was marketed at 375k, then 370k, then 360k now 355k. Not much to shock there, but it was also put into auction last month and only achieved 275k. It is now "available" at 300k.

What is odd, is that net house prices tells me it was 'sold' at 300k in April 2008. This is strange, as it was occupied by an old lady who wouldn’t have sold it unless it was to pay for a home. I don’t know what has happened to her as I have now also emigrated.

So a house that would have sold for c.350K in summer 2007 is now only getting around 275 in auction. That’s quite a hit…

I’m now renting in Abu Dhabi. I will consider the UK again in a few years time – but not until prices are at levels where rental yields reflect the risk.

Until then, I’m holding my pennies offshore getting 6.9% tax free. I don’t see the need to hedge against inflation as the funds will only be used to buy another house which has pretty favorable inflation at the moment!

[edit: removed the link]

Edited by Scott Mills

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370k for a 2 bed semi! Ok, I paid 270k for it in 2006 - damn bull trap – I had previously STR in 2005.

"Damn"? That was no bull trap. That was you getting in well before the peak. And, what? 50-70k profit? Cool Property magnate, I salute you.

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  • 395 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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