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Another one asking for advice re offer
hethmar
Posts: 10,678 Forumite
Son has been to see a flat which is a repo. On the mouse prices it was sold for £250k 3 years ago as a brand new place. The agents are asking £170k.
Its apparently in pretty good nick, 2 beds, en suite plus bathroom, kitchen with all appliances. Not in the best part of London but supposedly in for a lot of upgrading due to olympics including new DLR opening next spring.
Its on a development that is still not complete - 3rd phase seems to be hanging :rolleyes:
but some ridiculous prices still being asked for penthouse etc on there - c£770k and so on. Phase 1 is showing as sold out (this is the one son is looking at - he said flat above is empty). Phase 2 showing as 70% sold.
He already has a flat 120 miles away (hence the search for something closer to his job) which he can rent. He has £30k deposit.
So £170k - what offer should he go in with first.
Its apparently in pretty good nick, 2 beds, en suite plus bathroom, kitchen with all appliances. Not in the best part of London but supposedly in for a lot of upgrading due to olympics including new DLR opening next spring.
Its on a development that is still not complete - 3rd phase seems to be hanging :rolleyes:
but some ridiculous prices still being asked for penthouse etc on there - c£770k and so on. Phase 1 is showing as sold out (this is the one son is looking at - he said flat above is empty). Phase 2 showing as 70% sold.
He already has a flat 120 miles away (hence the search for something closer to his job) which he can rent. He has £30k deposit.
So £170k - what offer should he go in with first.
0
Comments
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Still not complete? Then they need to sell some.
What are the service charges?
Never mind what he should offer - how much can he afford? What's 3X his salary?0 -
3 times his gross would be £108k (though he does do some freelance which brings in about another £8k a year, but ignoring that)
Service charge quite high at £1200 but does include parking and 24/7 security0 -
So he's on around £36k gross, so would need to borrow just under 4 times his salary to buy it after putting in his deposit.
I think he's stretching himself which is how a lot of people ended up in trouble in the first place. Get him to learn from others mistakes else he'll be the one having to knock down his property prices to sell it this time next year.
Tell him not to borrow more than 3.5 times his salary and thats only if his other outgoings are low indeed. Else borrow even less. If he is selling his current property he might also struggle to do so in todays market.0 -
No, he can rent his other flat for about 50% more than his outgoings on it - he already has a lodger and will look for another for that 2 bed place.
Point being he wasnt intending to put in an offer on the full price.0
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