Is this property good value?

RHemmings

http://www.rightmove.co.uk/viewdetails-21272141.rsp?pa_n=1&tr_t=buy

Brighton, 2 beds, £300K (more or less)

poppy10_2

Do you know the house number? A good start is checking previous sold prices on houseprices.co.uk

joshiesaunt

we have been looking at the Brighton area for the past two years. This road and house seem to be fairly standard for the area. House prices in Brighton still dont seem to be tumbling as fast as London (unfortunately for us!) but my friend who lives in BN2 area says that the market is at a standstill as people will not budge on prices therefore stalemate. This property looks as if it needs a bit of doing up but not a bad size (apart from miniscule patio - looks small even by Brighton standards). Good primary school catchment area though so if you have young family could be a good deal and always advantageous for re-sale (look at whether there is potential to add value in the loft area). However, I think this is over priced -there are literally hundreds of two bed properties on rightmove and other sites and I think you could find a lot better in terms of space and area for the same price. If set on this one, I would make cheeky offer of £250,000.
Pretty sure there will be someone reading though who will be much more familiar with Brighton market.

poppy10_2

joshiesaunt wrote: »

my friend who lives in BN2 area says that the market is at a standstill as people will not budge on prices therefore stalemate.

I've been monitoring BN2 on my property bee, and it has seen some of the biggest drops of all the areas I have been watching.

Jonbvn

Houses like that are better for birth control than anything the Chinese gov't ever did!

hostman

According to property bee it was reduced from £325,000 to its current price of £299,950 in July. So the owner is clearly relatively egar to sell.

Once you've determined its relative value to similar properties in the area, view it and offer £240k, IF its competitively priced already.

RHemmings

Thanks all. I'm not thinking of buying it. I know someone who lived in it until it was put on the market. Knowing something about the property, including a quick rightmove look at what it would rent for, it looked very expensive. Even at the reduced price of £299,950. If it rented for £975 a month, then for that to be a 7.5% gross rental return, the property should be worth £156,000.

But I thought I'd ask on here to see what people familiar with the local market thought.

lynzpower

I had a look in the EAs windows yesterday round BN1, and I think prices are falling for sure. I saw 3 beds for around about that price ( montpelier) for around 310 which obv the vendor would take a hit on. So I think it is overpriced

Funnily enough I saw LOADS of for sale signs in brighton 2 weeks ago, when I was there yesterday the majority were "to let"

pinkshoes

RHemmings wrote: »

Thanks all. I'm not thinking of buying it. I know someone who lived in it until it was put on the market. Knowing something about the property, including a quick rightmove look at what it would rent for, it looked very expensive. Even at the reduced price of £299,950. If it rented for £975 a month, then for that to be a 7.5% gross rental return, the property should be worth £156,000.

But I thought I'd ask on here to see what people familiar with the local market thought.

If it only rents for £975 and they're asking £300k for it, then I'd say that's VERY over priced!

Assuming a 20% deposit, then the interest on a £240k mortgage would be £1200, so the rent wouldn't even cover 80% of that!

RHemmings

pinkshoes wrote: »

If it only rents for £975 and they're asking £300k for it, then I'd say that's VERY over priced!

Assuming a 20% deposit, then the interest on a £240k mortgage would be £1200, so the rent wouldn't even cover 80% of that!

The £975 is an asking rental price for a similar property nearby. The actual previous rent was a fair bit less than that.

RHemmings

hostman wrote: »

According to property bee it was reduced from £325,000 to its current price of £299,950 in July. So the owner is clearly relatively egar to sell.

Once you've determined its relative value to similar properties in the area, view it and offer £240k, IF its competitively priced already.

And reduced again by another 10K to £289,950. That's a 10% reduction in price since it was advertised in May. I suppose the asking price is falling quicker than house values, but not by all that much.

Usually I'm not one for schadenfreude, but as I said earlier in the thread, someone I know was kicked out to put this house on the market.