Buying - Am I making a mistake

AlexMac

Re your Q's
"So I should conclude that it worth it price..." No; In that street, I'd say £227 is toppy even for a structurally perfect and well-presented house (with new bathroom and kitchen, in good decorative order...) as it would still be close to the highest -ever price achieved for the street in a market which is flat or falling in E16.

Sale data on Zoolpla is limited but the £217k value estimate on number 33, extrapolated from its last sale in 2009, is probably closer to the mark- again, for a well-presented house.

"and I have less than 10K in repair for the whole house?"
That could be tight; although Victorian houses are surprisingly resilient; the visible damp on the outside front has probably only come from leaking gutters (cheap to fix as the roof has obviously been retiled since the original Victorian slate). The internal mould comes in part from gutters leaking - presumably over many years - through the front brickwork, and in other areas (such as the bathroom ceiling) in part from condensation caused by poor ventilation, common in a tenanted house. So assuming the gutter is repired, that's probably only a few/low £thou in plaster repairs and redecoration, unless there's also rising damp at ground-floor level- another few£k.

The windows are plastic (yuk), so they won't be rotten, but assuming it will have the 'suspended' (as opposed to solid) floor common in Victorian properties, check for deterioration (wet rot or dry rot) in any floor timbers (especially the joists which support the floorboards. Start by jumping up and down to see if theyre springy! Again, at worst, a couple of £k to replace and guarantee.

And as regards the Q "If I was to sell it in few years, I should expect to get back what I've paid?"
Don't bank on it. Look at the 'value trends' tab on the charts at the bottom of the 'property details' page for any house in the street on Zoopla, and you'll see static or falling prices for the past few years in E16- in fact everywhere except premium areas of the UK. Few houses have sold in the street in recent years so they don't sell fast?

You should probably now buy a house to live in rather than as an investment; and if it was mine, I'd want to clean off the black mould staining from the front brickwork and repaint so it lookked as good as the others in the terrace, replace the bathroom and kitchen- at a cost of anything from a few hundred each to a few £k each depending on how handy you are. So your £10k renovation budget's looking a bit tight

But if you really like the place, go for it- at the right price; it is one of the cheapest 3-bedders in Inner London- only my home area of SE London has similarly cheap homes in zone 3. I endorse all the above comments about getting prices from builders (to my mind more useful than a Surveyor- although with a few hundred quid spent on a full structural survey plus quotes you can negotiate the price down). Good luck

helloyouu

Thanks guys. I contacted my bank and they told me I should expect at least 10-15K in reparation cost just from the picture. Maybe more after inspection.

Amount that the seller will never accept to reduce.... I shall probably contact him to cancel the purchase....

helloyouu

Just a last point before contacting the seller. Regarding the toppy price of 227K, it's only if you include flats in the average. But for house only, it seems close to average?
primelocation.com/house-prices/london/exning-road/?sold_price_types_select=&sold_price_years_select=

Still thinking it's toppy?

DannyboyMidlands

Yes, very toppy.

To get your purchase price you need to work out what you think it'll be worth when finished. Lets say £220k. Then deduct your costs:

Building work (say £20k)
Purchase fees
Stamp duty
Contingency (say £10k)
Profit margin (say £20k, otherwise you might as well buy one already rennovated)
Etc.

Those numbers give me a purchase price of £170k. So an offer of......................

DRP

DannyboyMidlands wrote: »

Yes, very toppy.

To get your purchase price you need to work out what you think it'll be worth when finished. Lets say £220k. Then deduct your costs:

Building work (say £20k)
Purchase fees
Stamp duty
Contingency (say £10k)
Profit margin (say £20k, otherwise you might as well buy one already rennovated)
Etc.

Those numbers give me a purchase price of £170k. So an offer of......................

I think you'd have to be very lucky to secure a deal on any house where you have deducted all those things from the askign price.

As a seller i might be convicned to shift my asking price if expensive renovation work was shown to be needed, but 'profit margin', contingency, stamp duty or purchase fees ...?? i don't think so!

helloyouu

Lol. You will never find a 4 bedroom house in zone 3 at 170K.

I'm not looking for margin or profit, just not loosing money if I have to sell the house

DannyboyMidlands

DRP wrote: »

I think you'd have to be very lucky to secure a deal on any house where you have deducted all those things from the askign price.

As a seller i might be convicned to shift my asking price if expensive renovation work was shown to be needed, but 'profit margin', contingency, stamp duty or purchase fees ...?? i don't think so!

I haven't deducted them from the asking price. I've deducted them from a guess of the finished value after the work is done. In fact, I'm actively ignoring the asking price.

The point is that no matter what the asking price, for me to buy the house I need it for £x otherwise I'm potentially losing money.

If the vendor wont sell for that then fine. Just find another house.

DannyboyMidlands

helloyouu wrote: »

Lol. You will never find a 4 bedroom house in zone 3 at 170K.

I'm not looking for margin or profit, just not loosing money if I have to sell the house

So why not buy one that has already been rennovated?

ruggedtoast

helloyouu wrote: »

Thanks guys. I contacted my bank and they told me I should expect at least 10-15K in reparation cost just from the picture. Maybe more after inspection.

Amount that the seller will never accept to reduce.... I shall probably contact him to cancel the purchase....

I imagine he's going to have a long wait for a buyer then.

Jox

Look how nice this one is!

http://www.zoopla.co.uk/for-sale/details/26771599?more_details_carousel=1_carousel=1