Daydream thread... without the rose-tinted specs

ferretkeeper

This is all just my personal opinion based on recent experience...Have to agree with above posts - £250k is such a dodgy price.

We bought at that 4 years ago, have since spent thousands, 10's of thousands maybe, with more needed and yet it will not sell for any more than £250k today, in fact it wouldn't sell full stop, no-one's looking for this type of property at this price in this area.

We've had a new boiler, fencing/landscaping, resolved cavity wall tie issues and subsequent damp (found at survey) then re-rendered whole house, made massive improvements on the land with fencing, drainage etc.

Replacing and improving what is already there does not add value it seems, particularly so close to the threshold.

We'd need to do something major to make our property worth going over the threshold and there is PP for an extension but we'd probably only just get our money back at this stage if we could even afford to do it.

The property details say there is potential to extend, might be worth asking the agents what would that do to the value and consider that as an option.

Otherwise I have to say this doesn't seem like a wise move UNLESS you can get a reduction on the sale price based on the survey info - the estate agent's details makes no mention of having to improve or replace any of the things you've stated, it's obviously not being marketed or priced as a do-er upper and the sellers may not be willing to accept a reduced price if they don't consider the works need to be done.

And as business decisions go, this doesn't feel right, it is very difficult to 'flip' houses in this market. If you add in moving costs, the Stamp Duty you'll pay now, the selling fees in a year or two plus interest on any mortgage to the renovation costs (which will probably exceed 30k) you are going to be seriously out of pocket if you can't achieve more than the £250k when the time comes.

We bought a repossession nearby at a good price, spent a little too much on doing it up, in fact we did all the things you mentioned plus furnishing it and we were around the £30-35k mark. We'd get that back plus a little extra if we sold it... however the local market is saturated with similar properties and we are renting it out for now which was the plan anyway.

I can understand wanting to have your own house again but why now, presumably you're in rented, is there an end to the lease or is it not a great place? I know prices are creeping up but it's not worth buying the wrong place for the sake of owning somewhere. I'm speaking as someone who wishes I could take back the decision to buy this place - it's easy enough to buy but soooo much harder to sell again.

I agree with other points above, that living in a building site will not do your health much good, the insulting thing would be to not get anything back for all the inconvenience and outlay.

And if you have the proceeds of a sale in the bank as Dave did and can live comfortably on the interest that puts you in a very good position - and not just because you can move on the right place quickly.

If you've got cash and want to put it in property (which contrary to all I've said above I think is a good move given the present state of the market) what about a real doer upper, where you can really add value and maybe buy at auction to get a good price? It sounds a bit Homes under the Hammer but I think that's the only way to really win at this game.

Sorry if this sounds all negative and if my objections (not the right word) - opinions? - aren't relevant concerns to you or your situation, but I think it's easy to talk yourself into something when other pressures are on you.

OMG another epic post sorry

Rummer

:j I just finished an epic project that I have been working on (and avoiding) for years :j

Better_Days

Thanks for all your thoughts and the detail too! Yes I have spoken - you have got the right property. We have agreed a reduction in the AP, athough not substantial.

I think you are right the biggest gamble is the SDLT threshold and the effect it will have on the future sale price. We are not getting much interest on the capital we have in the bank, and the rent here is £725 a month, DH has to work 3 weeks every month just to pay the rent. I had budgeted for 6 months in rental, but now we are looking at least 9 possibly longer, and definately longer if we don't buy this property.

I also take the point about the difference between adding value and just making the property more saleable. When I speak to the surveyor next week I will ask for his opinion as to the value if we did the work. The EA who sold our house is also very approachable and I will ask her opinion as to value when the work is done. This will be very helpful in informing our decision.

Next door which is bigger went for £261k in 2006 and £279k in 2003. There is another nicer 4 bed down the road up for £339k which hasn't sold yet.

The stress of having 2 purchases fall through (both for lovely properties) has had a negative impact on my health. The worry that we will be priced out of the market isn't helping. I am totally exhausted physically & emotionally by the whole 'house search' thing. I hope this house will have the space that I can get away from it while most of the work is going on. Being near to DH work is a big plus.

The two biggest drivers for us to buy are the rent, and the fact that AP's in the £200 - £250k band for the sort of property we really want have increased by about £25k since this time last year. Whether or not the actual sale prices have risen as much remains to be seen. With help to buy being extended in January, I can't see prices going down.

I don't know - it is a very finely balanced decision. I had a look at all my 'saved' properties on RM over the past year or so, and this one is one of the better options. Whichever way we jump I don't think we will know for a while if we have made the right decision.

Thanks again for taking the time to let me have your thoughts.:beer:

Edited to add: in terms of price per square metre this is one of the best deals we have looked at, even taking into account the work that needs doing. Have toyed with the idea of buying at auction, but currently feel it would be too much of a risk as I don't really know what I am doing!

I_have_spoken

What about a 'walk-in condition' flat for £190k in Ashfield Grange near Great Ashfield? No worries about maintaining a detached or struggling to 'do up' while living there.

http://www.rightmove.co.uk/property-for-sale/property-39190402.html

Alternatively this detached bungalow in Woolpit for £215k could be nice for about £10k and £3k of work on the garden (poss. a probate sale) -

http://www.rightmove.co.uk/property-for-sale/property-40173214.html

Rummer

Phew! After another discussion about an allotment hubby and I decided to tackle our own garden and make the most of that first. I know this is the sensible idea but I still am hankering after a plot for the social side of things.

The upside of the discussion was that we have spent the last hour or so in the garden working to get the back part of it cleared and it is looking much better already.

We have tree that has been left to become tangled in the neighbours foliage so we are in the process of hacking that all back and getting the raspberry area all cleared out. It is tough going and I am not really able to do much apart from some light weeding and trimming atm however I am keen to get as much as we can done over the wknd.

What should I be planting in pots now for autumn/winter/spring colour??

lostinrates

Rummer wrote: »

What should I be planting in pots now for autumn/winter/spring colour??

I'm thinking about that too.

I've bought a few cyclamen. I only like the super tiny ones, like little elf bells, not the big ones, and they aren't 'wasted' as they can be planted in the garden afterward.

But I'd really like more exciting front pots one year.

I'm not keen on ornamental cabbages, but I'm feeling that I could like them, just for the novelty to me.

I really would like nice pots this 'down' season.

Rummer

I know next to nothing about flowers as I have been focusing my attention on fruit and veg, although I don't know much abut them either :rotfl:

Cyclamen are lovely. I think I will have a google and see what comes up for other ideas as I have quite a few pots to fill and I really would like them bright and beautiful

lostinrates

Rummer wrote: »

I know next to nothing about flowers as I have been focusing my attention on fruit and veg, although I don't know much abut them either :rotfl:

Cyclamen are lovely. I think I will have a google and see what comes up for other ideas as I have quite a few pots to fill and I really would like them bright and beautiful

Google image for winter window boxes or something. See what tickles your fancy.

alfie_1

evening all.... please note its pre 8.01pm...:D;)

i have one chook who escapes every day but sits by the fence at T time to be popped back in....:rotfl:

re the house buying...as im a non owner this is not MY experience but my friend who buys regularly. she buys at 25% below market value of a "done up" house if it needs minor work. and 30% plus below DU if major works. ie. value of buying at £300,000 DU. she would pay £200,000 if major works and £225,000 if minor. spending £50,000 and £25,000 respectively enabling a profit on sale. her buys are much larger amounts but an example was. payed £650,000 at auction. spent £300,00 total for BIG refurb and sold for £1.8m. :eek:

i honestly think that if cosmetic work doesnt add to value, id live as is and sell on hopefully with profit.
the way to go seems to be at auction if a refurb for profit is what your after. people do not make allowances for refurbs when selling on the open market....:o usually because they get caught in the pricing bracket too..

otherwise you get caught in a sellers trap [sorry itsme ]

Davesnave

Rummer wrote: »

:j I just finished an epic project that I have been working on (and avoiding) for years :j

Well done, you! :T

I didn't. I'm still adding bits to the supports on the wood barn roof, having decided now it's 'finished' that it might have a weakness in a gale. Mind you, the old roof framework wasn't half as strong and it lasted 12 years, or more.:rotfl:

I did manage to process and freeze about 3 kg of sweet peppers though. And.... besides the usual puffballs, which we are getting tired of now, we have proper mushrooms growing in the bottom field.

Best news of all, however, is that the cheque came from Openreach today, and although it's not separately listed as such, there's a 3 figure sum in compensation included, besides the wayleave payment. :beer: