Property Snakes and Ladders; 2009

poppy10_2

Doozergirl wrote: »

I love this place

Wasn't it valued at £900,000 in the first place and they put it on for way more?

Valuations came in I think at between £1mil and £1.1 mil; Beeney advised them to stick it on at £900,000 but instead they decided to market it at £1.3m .

The developer guy is still posting from time to time over on HPC. Sounds like he has no regrets, will still be in +ve equity if he achieves £995k.

dopester

PasturesNew wrote: »

12 months on and Natasha and her mum have moved into the bungalow.

Natasha: "I think £475k was slightly ambitious."

Began watching it half-way through.. after reading Pasture's running review.

Was it a full 12 months on from that point? Natasha had switched from blonde to brunette. Reminds me that I'll have to look more for such signs of economic change with dress/fashion/appearance.

She didn't seem that stupid to me.. quite focused - other than having believed in a reality where asset values have been rising in a huge bubble for years. Big plans to be a millionaire. Just keep buying property, get some workmen in, then offload it to some mug always willing to pay/borrow ever more.

PasturesNew wrote: »

Figures
Bought: £330k
Budget: £82k
Wants: £475k

dopester

PasturesNew wrote: »

Beeny: "This area's had an extra hit and the immediate area is stuffed full with the people who have been hit hardest by the economic turmoil."

In Battersea the number of houses sold has fallen by 33%.

Need £866k just to break even

Agents: £825k, £800k, £750k.
OOPS!! Average of £75k loss

Mother: "It wouldn't be a consideration to sell this property at the current time"

Beeny: "renting ... need just under £3k per month to break even". She thinks they could get £3,200/month.

Beeny said something about it being on the main route in to the City, and so many of the people living in houses in the area being hit by job losses.

The father was like, "Plan B then."

What kind of plan is renting it when you're property is only going to lose 50% or more in value, and rents are going to crash about the same.

Yet the son then decides to live in it, working as a domestic installer - and gets 3 other people to share the house... perhaps themselves having downsized from renting their own apartments... (cut costs by moving back parents - cramming in to share with friends) Wonder if all that covers around £3K?

Entertainer

Rental yield of 5% on that one in London. Another zombie situation.

I liked Natasha doing a Darius on PopIdol at the end there:

"I will make a million on property.":money:

barrooo

The most interesting/funny bit for me, was at the end. Despite having had all the trouble in development and the deprecitation in house prices, both of them were keen to get funds together to try again, whereas mum and dad said thats enough for them.
I wonder if this will be mirrored in the property market as a whole, especially as headline figures are indicating a small bounce at the moment.

ad9898_3

barrooo wrote: »

The most interesting/funny bit for me, was at the end. Despite having had all the trouble in development and the deprecitation in house prices, both of them were keen to get funds together to try again, whereas mum and dad said thats enough for them.
I wonder if this will be mirrored in the property market as a whole, especially as headline figures are indicating a small bounce at the moment.

Too many people out there still feel we are in a blip, the classic line of 'we will sit it out until things get back to normal' is still very evident.

wymondham

This has probably been said before in the thread but I'm at work and don't have time to browse, but was beanie pregnant again???

Lotus-eater

I certainly hope she was pregnant

Very interesting program. Two more amateur developers, both ended up living in the house as they couldn't sell it for a profit. Keeping hold of them "until the market recovers" ... if only I had a pound for every time I heard that.... I'd have 5 quid!

Mini_Bear

I agree with Lotus-eater, the number of people i have overheard saying they are waiting for property prices to back to "normal" - ie 2007 peak prices. That wasnt NORMAL. 100% and 125% mortgages wernt normal. Buying at 6x+ income wasnt normal.
I liked this program but felt genuinely sorry for the children's (well thats what they were) parents. It will take a long time to recover those losses.

chewmylegoff

Before, they used to find out that they had made a £50k profit, but only because property prices had gone up so much because their amateur project had overrun by a year. I used to enjoy them being told that if they hadn't done any work at all they would have made the same profit.

Now the situation is reversed they're all losing money regardless of the work they did.

I felt a bit sorry for the lot who were only going to redecorate the house, but were convinced by beeny to remodel it completely and spent an extra £120k. If they'd stuck to the original plan they would have probably lost less money.