Thoughts on why the lack of interest / low price ?

Prothet_of_Doom

The alternative is bidding on this : http://www.rightmove.co.uk/property-for-sale/property-46320583.html














Auction comes up in a month, but it's for sale here http://www.rightmove.co.uk/property-for-sale/property-48269819.html?premiumA=true


Not entirely sure how realistic the £36K guide price vs £55K asking price is.


Because it seems it changed hands for £50K in May of this year.
http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=47922521&sale=47260571&country=england
To quote the advert : Guide Prices and Reserve Prices
Each property sold is subject to a Reserve Price. The Reserve Price, which is agreed between the seller and the auctioneer just prior to the auction, would ordinarily be within + or - 10% of the Guide Price. The Guide Price is issued solely as a guide so that a buyer can consider whether or not to pursue their interest. Both the Guide Price and the Reserve Price can be subject to change up to and including the day of the auction.


Should that read : "We set the reserve really low to entice people who are greedy and like a bargain, to come and bid against each other and think It'll go for more than +20% come the day" ???

AdrianC

Prothet_of_Doom wrote: »

Not entirely sure how realistic the £36K guide price vs £55K asking price is.
...
Should that read : "We set the reserve really low to entice people who are greedy and like a bargain, to come and bid against each other and think It'll go for more than +20% come the day" ???

All it needs is two numpties who think they've spotted a bargain, regardless of the reality...

SailorSam

People who are in shared little bedsits in London must look at those prices and think ....... if only ...... if only.

Dan-Dan

Prothet_of_Doom wrote: »

It might be that once it's got a regular paying tenant, that taking some of the equity out in this way will be an option.

House of Cards..

Errata

Re-roofed? Is it a flat roof?

ETA According to my trusty google earth the block has a flat roof.

Angelicdevil

Wonder if the length of the lease is a factor?

carefullycautious

Its a shame you cant talk with a local BTL landlord who knows the area and can give some advice. Try landlordzone forum and see if there are any in that area.


If any landlords wanted to snap that flat up they would have done so maybe there is a reason?

Prothet_of_Doom

carefullycautious wrote: »

If any landlords wanted to snap that flat up they would have done so maybe there is a reason?

Yeah, I think that there is more demand to rent new builds and small houses for not much more.


There are a lot of property in the £60 to £80K range, which would rent for £200 a month more.

Prothet_of_Doom

Angelicdevil wrote: »

Wonder if the length of the lease is a factor?

Well, if the person at the estate agency who is dealing with it, actually could find that out, and get back to me with a time and date for a viewing, I might just be able to move forward one way or another.


According to Zoopla:

First listed
£55,000 on 13th Feb 2014


Asking price changes

• £50,000 9.1% Reduced on: 21st Feb 2014
• £40,000 20.0% Reduced on: 12th Apr 2014

http://www.zoopla.co.uk/for-sale/details/31970926?search_identifier=434d559ac55eb787f6785e101265623e#vUT8qlwEAOXGbkbU.97


I guess that there's something wrong with this.

Mickygg

Let's be honest, even with the thousands of developers this hasn't been snapped up. The photos are terrible which as said before must mean it is hiding stuff.
Work out how much will cost to do it up. I'd say £10k to be safe then work out yield based on £50k.
Only you know whether this is worth pursuing. If they have an office why not go and see them?
But yes as you say 20% reduction smells of problems.
If something seems to good to be true (in this case price) it usually is just that!