My flat has not sold - help!! any tips please???

Debt_Free_Chick

jyonda wrote: »

How much does this rent for and what price would it need to be sold for an investor to make a 7% yield? I'd work it out myself but I'm a bit of a thickie.

Assuming a valuation of 225,000 you'd need rent of £1312.30 pcm for a gross yield of 7%

The agent estimates the rental income to be £1170 (on the for sale ad on RM) which is a gross yield of approx 6.25%

KiKi

huntersc wrote: »

Honestly, forget tea towels, plants, lights or any other kind of magic dust. Here's the rub, you have a very small niche of people who will buy your flat.

The first is the Londoner who wants to have a small place in London for during the week and wants it close to transport so he can get in and out of London to go to his house in the Cotswolds at the weekend.

The second type of person is similar, it's someone that works from home outside of London and needs to be in a couple of days a week and needs somewhere he can stay.

The third is the young professional that wants to be central but cannot afford other more central and snazzy areas. Because it's a studio it's unlikely to be bought by a couple.

The top two are not buying at the moment. The third, the young professional would like to buy but can't because of deposit and mortgage etc.

Let's break it down.

FTB buying at £225k
Deposit = circa £45k
£12k for costs inc stamp
Initial amount needed £57k
Mortgage required £180k
Wage needed for mortgage = £60k

Let's assume that a single chap wants to buy the flat and earns £60k, plenty of those around. The question is, do they have the £57k deposit? They're unlikely to have capital from a previous sale (otherwise why move into a studio?) So at that price maybe 1 in 100 people who look at it could afford the mortgage, one in 1000 have £57k to spend right now. I had exactly the same problem once, I had a horrendously expensive flat that took me ages to sell. That was at a good time with low interest rates too.

I think you'll sell it, I know the area, it's nice, but you need to be patient because the people you need to buy it just aren't around at the moment or simply don't have the deposit. I think your price of £225k is actually very good. Looking at other flats in the area I'd probably buy yours before any on Pancras Way for example. How badly do you need/want to sell? If you really want to get rid quick then undercut everyone else, stick it on for OIE £199k. Otherwise rent it out, you'll get a good rate and perhaps make £50k more in 3-4 years time.

Exellent post, and I totally agree that it's a relatively small market at the moment who are likely to buy. I also think the flat is lovely.

Six months ago, your flat would have been a great price - and I actually think it's priced fine at the moment in the area you're in. It's just that people are not looking right now, or they are waiting - and so you're just not in luck.

So you can either wait and rent it out, or drop the price to what someone's prepared to pay.

Also, the Ground Rent and Maintenance Charge at £103 a month means someone's also forking out £1200 a year on top of everything else...which I think is expensive (although I have no other London comparisons).

Best of luck.
KiKi

berlin_2

summermummy wrote: »

I think for a studio the price seems high even for central London. If you can not lower the price significantly - some properties are selling at 10% - 15% below their original market values according to estate agents, consider a rent to buy option. This would allow you to sell the property over a longer period of time whilst receiving market value for your property.

If you have a lot of equity this option may not suit. To find out more research

Try www.firsttimebuyernetwork.co.uk
Or www.rent2buy.co.uk


There are also other companies that offer an immediate sale if you type 'quick sale' into google.

Cheers, am investigating the above links now. Have today instructed all the estage agents to lower the price to 210,00!!! There is indeed a good rental income yield generated from the flat, like someone mentioned but it's just that I live in Berlin and want to buy here with my boyfriend. There is also the fact that my Mum has been left managing the property which I don't want to burden her with, coupled with the fact I don't want to risk it and wait 4 years to see what happens either... So.... if anyone knows anyone that would like to buy a lovely studio/1 bed in the heart of camden for 210,000 - only 15 minutes by bike to Oxford street, please let me know??? :-) It will be the cheapest listing in my area on right move now undercuttung all the others (apart from the council estates and high rise accomodation offers)

I googled quick sale and came up with the nationalhomebuyers which at the end of filling out the form prompted you to pay 495 pounds for their surveyor to come round and value it. Has anyone had experience of using these companies?? Are they worth the initial expenditure??

Thanks again everyone for all your advice, really chuffed. Will let you know how it goes!!!

System

I personally love the flats decor, very minimalistic.

Is this your only property? If not, why don't you rent it until a buyer comes along? he Estimates rental is £1170.00 pcm, and then when/if the property market picks up you'll have some savings tucked away too.

Why do you want a quick sale, if you don't mind me asking?

As for lowering the price, if someone wanted the flat they could always put in a lower offer.

Chris2685

Good that you are lowering the price to try and shift it. It is still damn expensive for my tastes though! The area warrants the price in my opinion though.

Imp

When we looked for a house to buy, we looked at one which was rented out. Despite it fitting our needs, we decided not to buy it because we didn't want the tenant to be thrown out. It just didn't seem fair. After that we didn't look at any other houses which were let out.

IHS88

Hi Berlin

A studio in this part of town is a classic auction lot. Constant demand in this great loaction will mean it will always let.

Sure, its size is an issue with some lenders even refusing to lend on studio flats.

The best bet, would be to sell this property in auction.

I would suggest either allsops auctioneers or Mc Hughs auctions. Both send their catalogue out to 1000's of serious buyers who ARE still buying.

The auction process will be quick and will get the job done provided you set a realistic reserve. Infact auction houses are refusing to take on properties that are not realistically priced.
Based on what your property is on the market for, I would suggest a reserve of say £170,000 in the hope of securing a little more.

Marketing a property with as many as four agents is not necessary and screams of desperation.
If you do decide to go down the auction route, make sure that your property is removed from righmove. Any potential buyer will obviously be doing their homework on local prices and may be put off by seeing your property already on the market with so many agents.

Good luck!

Woodyrocks

Some really good advice given on here Berlin. As someone that would be in the market for a studio in 'central' London close to a tube station, as appealing as your place may be, it screams over-priced to me and for that I wouldn't even consider it. I would be happier to stay put south of the river, with a train station to contend with but with a 2 bedroom maisonette for the same money. Money talks and if it is right people will bite but on the other hand, if you are willing to stick to your guns, confident that you have a good place on your hand in a good location and at a good price, someone out there will recognise it for that.

Also remember that many are now going halves with sister's and cousins to be able to raise the mortgage they would need for a price such as yours and sharing a studio is not viable really. But hey with a new term starting you might get some rich country dwelling parent buying their 'baby' a studio close to Uni!

sooz

My main issue with the flat is you can't decide if it's a studio or one bedroom. It's got 3 ads on rightmove - suggesting desperation, & indecision.

It has a bedroom, albeit small. Advertise it as one bedroom.

It needs the furniture rearranging in the living room & perhaps a smaller sofa rather than the sofa bed. Turn it round so the back of the sofa is facing the kitchen, & add a colourful rug. Those tiles look cold & the flat needs a bit of colour & accessories.

If possible, try changing the bed to a small or 3/4 double divan & again add some colour & a head board. I have a very similar sized guest room, & it looks huge compared to yours. The white duvet cover is good. Just add a little to it, with perhaps 2 cushions & a matching skinny throw.

The bathroom needs the boxing & bath panel to be fixed & repainted. The electric shower looks cheap (there are nicer models) & the silicone or tiles near the bath looks grubby. The splashback should match the other tiles.

Natty082

Its the price!

Been watching closely a flat that started off at 130K (New build been empty for 18 months).......

Nothing is moving at all (flats, houses, anything!) in my area ..... and then this flat was dropped to 120K.....100K..... 90K.....80K.... and under offer the next day!