Property viewing update.

tomstickland

I've only been looking at properties for a short time. However, I've told the EA that I want to take a 2nd look at one of my first viewings. It's a ground floor 1 bed flat that needs redecorating and some other minor works. It's about 12 years old, typical modern build, but not stupidly small. It's been on the market for a good while, due to a previous buyer pulling out and it needing some cosmetic work. I reckon I could sort the whole flat in 2 days if I got one or two friends to help.

I've also been to look at some 2 bed houses and flats, but this one has some good plus points. It's located by a large open space, with open gardens round the back, it's by a canal that's just had £xm of redevelopment grants agreed, it's not by any busy roads and it's well located relative to work. The area is mainly 2 and 3 bed homes, so it's not a crime hotspot. It's within 1/4 mile of open countryside and shops are about 1/2 mile the other way.

I called round today to take another look at the area. The next door house owner was there and I had a good chat with him. He seemed like a good neighbour and also commented that as someone who'd only moved in recently he thought it was a really quiet and pleasant spot. I also tried the doorbells for all of the neigbouring flats and managed to find a woman who was in and she kindly came down to answer my questions about the area.

She also said that it was a quiet area and there were no problems. She told me more about the management company. They charge £900 pa, but most residents are not happy with the service they provide. However, building insurance is part of the management deal, so the £75 per month also contains some of the insurance cost.

Out of the 9 flats 2 are owned, one has just been sold and the one I'm looking at is empty.

I've thought about this a lot and I could see myself living there, and after looking at the money being charged for some really pokey 2 bed terraced houses I reckon it's a cost effective solution. They're asking £90K for it, but I reckon I could offer £80K and maybe end up paying £85K. That'd be about £410pcm on a 25 year repayment mortgage, so about the same as renting a similar property.

Anyway, I think I should look at some more proporties. I've got the 2nd viewing tomorrow, so the EA can probably tell that I'm quite interested. Maybe I'll explain the situation and ask them to tell me if anyone else is looking at it. I don't want to rush into this, but I can see this as a good compromise on location, closeness to work, afforabiliting, living space etc.

Bun

Good luck with your viewing. Your research on the area sounds thorough. I wish we had done as much on our last property.

I would however check exactly what the charges cover. If it's £75 per month (£900 per year) then from what we pay 25-30 of this will be buildings insurance. check if there is a sinking fund for repairs etc. and how easy it is to get repairs doen.

Jorgan_2

Just a thought regarding how many of the flats are owner occupiers. If I have read your post correctly, 7 of 9 the flats are let out, seems like a high ratio. You maybe having new neighbours every 6 months or so. Would this be an issue?

tomstickland

Yes, I have thought about this. The flat above has just been sold, so I'm going to find out whether it's an owner occupier or a buy to letter. That's my only adjoining neighbour (outside wall on one side, stair well on other, ground floor, so only one flat above).

I went for 2nd viewing today and I asked about possible offers and it was suggested that the price had already been set "to sell". Well, it hasn't sold though. Then the EA told me about a mystery other viewer who had made an offer, but was waiting to sell her house. When I asked what this mystery offer was the information wasn't available, but it was "over £85K" apparently.

After my second viewing I'm still liking the flat. All it needs is a weekend of painting and cleaning, along with a few new light fittings. Not a lot of cost or effort.

All the same, I'm considering an £80K offer. I've been doing my maths on mortgages, and a £70K mortgage I could afford to pay off in 10 years, or at 20 years it'd barely cost more than renting.

TBH I'm quite surprised by how quickly I've started to see this as a possible go situation. Part of it is that I can see it as a totally affordable and pleasant place to live and I've spent far too long living as a student, so I'm keen to get on with sorting things out for myself.

Providing that the mystery other party doesn't proceed then I think I can afford to think about this for a while.

I also looked at a 2 bed flat today and it confirmed my suspicions - the 1bed flat is actually going to give me more space. The 2bed has a very small 2nd room and the same or less living room.

tomstickland

Well, I've just been doing some spreadsheet work on savings and cost of buying etc. It turns out that the overall cost of buying a property isn't going to be much different if I wait two years and save more or go and buy now - based on a 3% pa assummed property price growth and a 5% savings interest rate.

A lot depends on what house prices are going to do in the future. I can't predict the future, nor can anyone else. Hmmm.

Doozergirl

tomstickland wrote:

I asked about possible offers and it was suggested that the price had already been set "to sell". Well, it hasn't sold though.

:rotfl: Exactly!

tomstickland wrote:

Then the EA told me about a mystery other viewer who had made an offer, but was waiting to sell her house. When I asked what this mystery offer was the information wasn't available, but it was "over £85K" apparently..

I'd like to think that EAs were generally good people, but this is obviously BS - how many people really sell their house to buy a 1 bed flat?

It's great to see that you're researching absolutely everything, working out exactly what it's worth and not being intimidated by pressure tactics. If that is down to reading this board then I'm really pleased. It really proves that even as a FTBer you can make very clear decisions on property. I find your commentary really interesting and other FTBs reading this should take note.

I have to be very honest and say that it is sometimes frustrating to have to keep repeating the same to questions along the lines of 'what shoud I offer on a property priced at x' - a few hours research will provide a very clear answer.

Well Done Mr Stickland - go straight to the top of the class!

Dora_the_Explorer_5

Then the EA told me about a mystery other viewer who had made an offer, but was waiting to sell

I might have missed something here, but did you ask the EA if the offer had been accepted? and if not, why not? The fact that someone is waiting to sell shouldn't mean they can't make an offer on a property they want to buy, surely.

Doozergirl

Dora_the_Explorer wrote:

I might have missed something here, but did you ask the EA if the offer had been accepted? and if not, why not? The fact that someone is waiting to sell shouldn't mean they can't make an offer on a property they want to buy, surely.

It would be pointless to accept an offer from someone that couldn't afford to buy the property. An EA would generally advise the vendor to continue marketing the property and not to consider the offer until the person offering was in a position to proceed.

The fact that we're talking about a 1 bed flat really does bring me to think that the EA is lying. Why would someone be in a chain buying a 1 bed? It sounds like a stock comment to me. If the offer doesn't exist, it certainly won't have been accepted!

tomstickland

Exactly, I'm not 100% certain that this mystery other buyer exists, and if they do then best of luck to them.

I did ask why they'd sell a house to buy a 1 bed flat and the EA said "divorce".

I'm going to phone up the EA for the flat above and try to find out what it actually sold for.

NastyMatt

Check here:

https://www.nethouseprices.com

It will show you what other places have sold for.

MORPH3US

Is the £900 pcm charge the only one you will have to pay?

Some flats we have looked at had a "maintainance charge" which like you said included the insurance, and then had an extra "ground rent" i think.

Maybe I miss-heard though!!!

Good luck though, myself and the gf are going through the same process at the moment and its a bloody long and tedious process!!!!

M