Non-motoring > Opinions on some flats.	Buying / Selling
Thread Author: sooty123	Replies: 45

New Wed 20 Apr 11 13:54   Opinions on some flats. - sooty123

I've seen some flats, and I'm after some opinions on it. I'm not sure if I'd live in it straight away or rent it. It's the first three here tinyurl.com/3gfessa - links to www.rightmove.co.uk One of the adverts says an offer of 55600 has been put in, not sure how likely it is for that to be accepted. I'm not local to the area and haven't had a chance to look at them. The area around them looks ok last time I was there, and from the pics (on a mobile)they look ok. the rent for them seems to be about £350 a month. Seem a steal or not? Last edited by: VxFan on Wed 20 Apr 11 at 19:52 Reply to this message | Report message

New Wed 20 Apr 11 14:07   Opinions on some flats. - Zero

www.rightmove.co.uk/property-to-rent/property-33312311.html They rent for 370 month. That's a yield before expenses of 8%, which is not bad. Reply to this message | Report message

New Wed 20 Apr 11 14:23   Opinions on some flats. - Dulwich Estate

OMG ! As a London resident the prices look more like the thing you'd buy on an Amex card than a mortgage. Reply to this message | Report message

New Wed 20 Apr 11 14:25   Opinions on some flats. - Dulwich Estate

I've had another look. It seems some photos were taken in the autumn - a good while back. May be relevant. Reply to this message | Report message

New Wed 20 Apr 11 15:10   Opinions on some flats. - sooty123

>> I've had another look. It seems some photos were taken in the autumn - a good while back. May be relevant. How do you know that? I wondered if there was something about them that makes no-one wnat them. Reply to this message | Report message

New Wed 20 Apr 11 15:30   Opinions on some flats. - Zero

Property in the east midlands under the 350k mark is NOT moving. A Quick look in an estates agent window this week in an east midlands market town reveals prices being marked down about 5% Reply to this message | Report message

New Wed 20 Apr 11 15:06   Opinions on some flats. - sooty123

New to all this, that's profit after the mortgage has been paid from the rent money? Did you work on the full asking price? Reply to this message | Report message

New Wed 20 Apr 11 15:27   Opinions on some flats. - Zero

Nah, the "yield" is the percentage per annum of the capital tied up in the property. You compare it how much you could get with investments in other investment vehicles. Minimum yield you look for is 5% and 10% is a good return. Of your 8% for example, you would need to pay management fees and taxes. If you have a buy to let mortgage you need to finance your mortgage payments from the rental. Buy to let mortgages are currently around 5% Reply to this message | Report message

New Wed 20 Apr 11 15:29   Opinions on some flats. - Iffy

...New to all this... Be careful - there are many traps in the property market for the unwary. The yield is the percentage return on your capital. So if you pay £100K for a flat, and let it for £10K a year, your yield is 10 per cent. Reply to this message | Report message

New Wed 20 Apr 11 15:40   Opinions on some flats. - sherlock47

>>>local RAF bases of Cranwell, Waddington, Digby and <<< maybe this was a plus point for renting at one time? Are they closing? Reply to this message | Report message

New Wed 20 Apr 11 15:45   Opinions on some flats. - Zero

Prices in Oakham and surrounding towns are falling, and shops in Oakham closing. I can only assume its the effect of the RAF base going. Reply to this message | Report message

New Wed 20 Apr 11 15:40   Opinions on some flats. - Dulwich Estate

"I've had another look. It seems some photos were taken in the autumn - a good while back. May be relevant. How do you know that? I wondered if there was something about them that makes no-one want them." The leaves in the garden and on trees are the giveaway. Reply to this message | Report message

New Wed 20 Apr 11 15:53   Opinions on some flats. - Iffy

The flat at the top of the linked list is a repossession. For future reference, the giveaways are the tapes over the taps and the toilet. For a repo, it looks as if it's been left in reasonable order, but it would need careful inspection. Don't expect top service from the agent - the lenders in possession pay buttons in commission, so the agent couldn't care whether you buy it or not. Last edited by: Iffy on Wed 20 Apr 11 at 15:53 Reply to this message | Report message

New Wed 20 Apr 11 15:57   Opinions on some flats. - Zero

>> The flat at the top of the linked list is a repossession. >> >> For future reference, the giveaways are the tapes over the taps and the toilet. Yeah tis true, but its unusual to find one on an estate agents books, they normally go out via Auction, which is where these will go if they dont sell soon. Get them for 45k there. Reply to this message | Report message

New Wed 20 Apr 11 16:04   Opinions on some flats. - rtj70

The top two listed are the same property but marketed by two agents. The bottom three are shared ownership - so is the price for the 50% share you buy or is that 100% and you pay half but then also pay about £108pm rent. Reply to this message | Report message

New Wed 20 Apr 11 16:06   Opinions on some flats. - Zero

We are talking about the top three. Reply to this message | Report message

New Wed 20 Apr 11 16:10   Opinions on some flats. - rtj70

But two of the top three are the same flat. So that's the top two then. Reply to this message | Report message

New Wed 20 Apr 11 16:21   Opinions on some flats. - Clk Sec

>>For future reference, the giveaways are the tapes over the taps and the toilet. Not necessarily a repossession because the taps and toilet are taped up. Last edited by: Clk Sec on Wed 20 Apr 11 at 16:22 Reply to this message | Report message

New Wed 20 Apr 11 16:24   Opinions on some flats. - Iffy

...Not necessarily a repossession because the taps and toilet are taped up... How many private sellers do you know that do it? Reply to this message | Report message

New Wed 20 Apr 11 16:39   Opinions on some flats. - Clk Sec

>>How many private sellers do you know that do it? People who live abroad or a considerable distance from the property they are trying to sell; particularly during the winter months. And the same category who don't want the accompanied viewing person using their bathroom as a public lavatory. Reply to this message | Report message

New Wed 20 Apr 11 16:10   Opinions on some flats. - Iffy

It seems the agent William Brown is part of this group: www.sequencehome.co.uk/our-services/auctions Which, among many other things, has an auction department in Norwich. Some of the repos may be punted through there if they don't sell quickly via the agent listing. Reply to this message | Report message

New Wed 20 Apr 11 17:18   Opinions on some flats. - Mapmaker

There isn't much repo property going through the auction houses even now. And of course in London prime property contineus to rise at 10% p.a. Reply to this message | Report message

New Wed 20 Apr 11 18:12   Opinions on some flats. - mikeyb

I think the fact they have decalred that an offer has been received gives it away as a repo. IIRC the agent has to declare any offer on a repo and wait a period of time to allow people to increase the offer before the vendor closes the deal. Its to do with limiting any liability to the owner by ensuring the best possible price was achieved Dont know if they are a good buy as I dont know the area, but compared to here its cheap and looks like a reasonable area. You dont get something here thats on fire for that Yeild of 8% is good to. I get 4.425% yeild on mine which is rubbish, but the tennant is a dream and the mortgage is tracking 0.89% over base rate so it gives a nice surplus of cash at the moment. When that changes I may just take the cash and run You need to check out the management fees and find out what they do / do not include. On a lowish rent property like this one they could make a huge difference to how viable this is Last edited by: VxFan on Mon 25 Apr 11 at 01:31 Reply to this message | Report message

New Wed 20 Apr 11 21:38   Opinions on some flats. - Fenlander

>>>agent has to declare any offer on a repo and wait a period of time to allow people to increase the offer... I hate that aspect of a repo and in the past have made my offers on the condition the property is withdrawn from the market immediately... they never agree... their loss. You need to be sure why you want the flat... you mention living in it or renting... sometimes you would be led to different properties depending on which you were doing. We are starting to get a close feel for the market at the moment for a possible move within the next year. It is very hard to work out just how little property is worth at the moment (in most areas) as so much is overpriced with vendors waiting it out. Bear in mind if you have to borrow to buy once the mortgage payment is added to monthly costs/fees etc in a falling or flat market it may be a marginal exercise. Last edited by: Fenlander on Wed 20 Apr 11 at 21:41 Reply to this message | Report message

New Wed 20 Apr 11 21:42   Opinions on some flats. - Zero

Given the benefit of time, which you have, you can watch the property type, and area, and you can see what's moving at what price and what's not. Reply to this message | Report message

New Wed 20 Apr 11 21:43   Opinions on some flats. - Fenlander

>>>Given the benefit of time, which you have.. Why do you say that? Reply to this message | Report message

New Wed 20 Apr 11 21:44   Opinions on some flats. - Zero

A year? thats time! Reply to this message | Report message

New Wed 20 Apr 11 21:46   Opinions on some flats. - Fenlander

Ahh OK. No we'll test the waters on the sales front by this summer... I just feel you really can't say how long the whole process might take these days so have given family an outside timescale of 12mths. Last edited by: Fenlander on Wed 20 Apr 11 at 21:46 Reply to this message | Report message

New Wed 20 Apr 11 21:43   Opinions on some flats. - Zero

Bear in mind, with a repo, the address and post code may mar your credit rating for a while. Reply to this message | Report message

New Thu 21 Apr 11 16:03   Opinions on some flats. - Mike Hannon

We used to derive part of our income from renting property. Never, ever, again. Your opinion of the human race in general will nosedive. And that's just the ones who bother to pay. Reply to this message | Report message

New Thu 21 Apr 11 16:33   Opinions on some flats. - Fenlander

We were landlords for a while a few years back... while it had some issues with a good letting agent the actual treatment of the place by tennants was Ok... as was the regular flow of payments. But by chance met a friend in town an hour ago who bought a modest house as an investment for their retirement a while back... with the apparently ideal situation of knowing a tenant who would rent in long term. Now two years on they find the rent doesn't even cover the mortgage and maintenance many months.... in a falling market that's a disaster. To add insult to injury they have to go and call for the rent every single month or it doesn't arrive. Last edited by: Fenlander on Thu 21 Apr 11 at 16:33 Reply to this message | Report message

New Thu 21 Apr 11 17:43   Opinions on some flats. - sherlock47

I have been a landlord of a 4 bed student let and a 1 bed (ex council) flat for approx 14 years - never a real problem with tenants - altho the flat is let by a professional managing agent (10%) who vets clients. Probably a stockmarket beating investment over the period when you combine income and asset appreciation. Reply to this message | Report message

New Thu 21 Apr 11 17:48   Opinions on some flats. - Zero

Ah! now student lets that's the thing. Much larger rental yield per property. Reply to this message | Report message

New Thu 21 Apr 11 18:00   Opinions on some flats. - sherlock47

student lets less bother as well - men are better than women at leaving it clean and tidy! Also easier to negotiate swap deals. Reply to this message | Report message

New Thu 21 Apr 11 20:39   Opinions on some flats. - Roger.

This is cheap! bit.ly/g72K6b Reply to this message | Report message

New Thu 21 Apr 11 20:55   Opinions on some flats. - Zero

Nice little house, not keen on the squatter neigbours on the right. Reply to this message | Report message

New Thu 21 Apr 11 23:22   Opinions on some flats. - Iffy

Not so many years ago there was a little house in Hetton-le-Hole, Tyne and Wear, which was reckoned to be among the cheapest in the country at, I think, £12,000. The property was tatty, but habitable. Hetton is a run down former pit village, but there are worse places to live, such as many of our inner cities. Last edited by: Iffy on Thu 21 Apr 11 at 23:23 Reply to this message | Report message

New Thu 21 Apr 11 23:32   Opinions on some flats. - Zero

Here we go 10 grand. www.rightmove.co.uk/property-for-sale/property-33582677.html Lots more in hull for 14 grand. Reply to this message | Report message

New Thu 21 Apr 11 23:51   Opinions on some flats. - Iffy

...10 grand... I'm surprised a house in Hartlepool is that cheap. The town has seen significant development in recent years, particularly around the marina/Jacksons Wharf. Lots of new apartments there which I imagine go for six figures, and only a mile or so from the 10 grand house. Reply to this message | Report message

New Fri 22 Apr 11 07:31   Opinions on some flats. - sherlock47

www.rightmove.co.uk/property-for-sale/property-33582677.html but click on streetview on the first page for a better idea! Reply to this message | Report message

New Fri 22 Apr 11 10:42   Opinions on some flats. - Iffy

The other side of Hartlepool - £300K for a flat: www.rightmove.co.uk/property-for-sale/Hartlepool/flats.html Some of those in the link are just a stone's throw from the £10K dump. Reply to this message | Report message

New Tue 26 Apr 11 11:09   Opinions on some flats. - Alanovich

Wow. Richardson Street doesn't look all that bad. Some of the properties are quite well maintained (well, those which aren't boarded up). There's even a trendy cabriolet parked in the street! Isn't it a rule of property investment to buy cheaply in areas bordering the best areas of the town in order to benefit from inevitable "creep" in the size of the desiarable area due to demand outstripping supply? If this cheap area is only a mile or so from parts where flats can fetch 300k, what are we all waiting for at £10k? Reply to this message | Report message

New Tue 26 Apr 11 13:43   Opinions on some flats. - Mapmaker

The other rule of property investment, is that if you buy something for 300k when only a few streets away you could have bought for 10k then you suffer from the inevitable "creep" in the size of the undesireable area due to supply outstripping demand. Reply to this message | Report message

New Tue 26 Apr 11 13:47   Opinions on some flats. - Alanovich

With a fair percentage of this cheap area being boarded up, that doesn't seem to be the case here. It seems to me that it is more likely that this cheap area will start to fill with an overflow of people wanting to be in or near the desireable area, thereby creating demand. This happened in my part of Reading 20 years ago, where a friend bought a small terraced house for £14k. It is near the most desireable area of the town and sure enough, prices rocketed out of all proportion to other local prices when property boomed. He's still got it as a rental property, it's near the station too and a hit with commuters. Reply to this message | Report message

New Tue 26 Apr 11 13:53   Opinions on some flats. - Mapmaker

Mapmaker>> due to supply outstripping demand. Alanović >>With a fair percentage of this cheap area being boarded up, that doesn't seem to be the case here. I'm missing something (unless you're playing irony with such a straight bat that I've missed it). Reply to this message | Report message

New Tue 26 Apr 11 13:56   Opinions on some flats. - Alanovich

Sorry, yes, misread you. Too much sun and cider down here in the tropics. Reply to this message | Report message