Quit everything , and start again over 50?

another_casualty

I've been looking at fend shui, on and off for a few years.
My brother was with me until last year ,and I was all over th place as you probably gather .
I will be reducing stuff more, that's for sure .

Now after having a look at properties in my area (£375-425,000), I noticed that there are a fair few properties that have been reduced .
I'm not sure how to proceed . We all know it is not the best time to be selling .
I keep getting letters from estate agents who want me to go with them. I'm just wondering ,apart from different photos , what difference is there between them and chase Buchanan ?

The garden will be finished , within the next 2 weeks all going well.
The carpet for the stairs/.hallway is a problem financially .
Then of course I've had all estate agents telling me 'no need to do anything '.

What I may do ,( have to think carefully ) is reduce price to £375,000with the intention of getting buyers to bid to £390,000.
So , if I get a bid of £375,000 I won't sell . I just cannot afford to .
If I do reduce price , I will ask chase Buchanan to alter wording , telling them 'in slight need of modernisation'etc.
One or two new pics to be added also.
Trouble with reducing price , you get cheeky offers .
If I change estate agents, it could be seen as desperate . If I take another estate agent on board as well, that could be seen as desperate also .
Thanks again

lessonlearned

AC. Sorry but an asking price of £375k with an expectation of people bidding up to £390k is not going to work, not at the moment.

Selling prices generally exceed asking prices when the market is white hot and only then on the most sought after properties. The market is not white hot.

I am afraid you are highly unlikely to get a bidding war for your flat, people do not seem to see it as that much of a catch. If it was it would have sold by now. Sorry to be so blunt, but that's your reality.

It's a nice middle of the road average flat in a decent area with some nice features but it needs work. Simple as.

I watched a programme this week. I think it was the "Tonight" series. It was called Brexit - house prices or some such.

Anyway it was looking at the effect of Brexit on house prices. There were a number of talking heads but the general consensus was that prices were weaker and the market was slow. London in particular was "soft".

The advice to would be purchasers was to offer 10 to 15 per cent below asking prices. A lot of people will have watched that programme and now expectations have been set. It will have set the bar.

You have no real choice now - you either leave the price as it is and ride it out or you reduce the price and sell.

Reducing the price to £375k should stimulate some interest but don't expect to get £390k. If people were prepared to pay that then you would have had offers by now.

I seem to recall that when your flat first went on the market you had an offer from an investor of £380. That was pre Brexit if I'm not mistaken.

Is it worth getting chase Buchanan to approach that investor, the offer might still be on the table.

I am monitoring the market quite closely here. Prices are stagnant, even quite reasonable houses are sticking and there are a lot of reductions.

Only the perfect gems are selling quickly and only then if they are competitively priced. It's tough for sellers. It's definitely a buyers market now.

patchwork_cat

OK you are saying that you can't afford to reduce the price to £375K, but from the info that you have put here, you can.

If there is something you aren't telling us then it is hard to make suggestions.

Sell for £365 less debts of £105K and say £15K for selling, setting up new house etc. That leaves £245K, A 2 bed flat in Poole this one for example is asking £175K, http://www.rightmove.co.uk/property-for-sale/property-60940487.html buy that for £165K, walk away with £80K in the bank .

I don't understand if you have given us the right figures why you can't afford it?

Are you concerned about pension, did you think that you would walk with £150K?

lessonlearned

i agree with Patchwkrk Cat. I don't understand your reasoning as to why you can't just reduce the price to a level which will enable you to sell. The figures quoted make perfect sense to me.

Property in Poole may not be as low as some areas in the UK but your money will still go a long way.

If you can clear about £50k to £80k you will be laughing.

You will be mortgage free so you could live quite comfortably on £10k a year until you find a new job. Your essential outgoings would be around £7k Max. You could have £3k discretionary spending and have at least 5 years breathing space even without working or earning anything.

What are you waiting for.......grasp the nettle, reduce the price, get rid, move and start your new life.

another_casualty

Thanks again patchwork , and LL;)
I will go on Payplan , and check balance of what I owe and let you know later . Also , will let you know total mortgage and add it all up .
The good news on that front , is that it is still going down.
I'm awaiting my latest statement from Santander . I remortgaged in July 2009.It should come through anytime now.

Unfortunately , the part of Poole I want to live is a little more expensive . Lower parkstone/ Ashley cross / Westbourne are the places that will work for me . 2 bedroom flats/ maisonettes tend to go for around £225,000.

Regarding those investors who said £380 ,000 when my flat was for sale at £425,000: Apparently they were very negative and condescending about the flat .Probably the most critical of all viewings. If chase Buchanan went back to them , they would probably sneer and offer £350,000.
Maybe , I could go down to £375,000.
Patchwork , no I didn't / don't expect to walk away wth that much;)
Nice if I could I have a couple of tiny pensions ( never earned a great wage),
and of course the gvt one . I'm just trying to be cautious , and not broke too soon.

Thanks

another_casualty

Payplan: estimated remaining debt - £23,984.55
Estimated completion date -01/11/2038
Will put mortgage later.
I am hoping that I can obviously reach a settlement with Payplan
(£12,000??).
We'll see

harz99

Please do rework your figures AC, and come back. Not sure why you're seemingly only looking at flats as with most you'll incur ongoing additional expenses, which you could surely do without.


As regards the area of Poole, what are your reasons for choosing those particular places, as you rightly say they carry a price premium.


My daughter lived in Poole for many years before she emigrated to OZ, and had variously properties in Canford Heath, the Poole Park area and Upton, all of which had several nice areas and cheaper than your choices, Hamworthy also can be nice as long as you avoid the Turlin Moor side of the railway.


I really do think you are in danger of missing the boat completely if you try to hang on for an unrealistic high price in this market - maybe reduce down to Offers Around £390k, that should get you offers at least around £370k which you can negotiate on.


At the end of the day, to escape the many pressures you are enduring, you really do need to sell.

another_casualty

Thanks harz;) Reason for my chosen location. I'm a little bit familiar with it . It seems safe, transport very important for me,and my friend lives in Lower parkstone .;)

Regarding service charges etc; a lot of places are share of freehold , or I may have to pay about £100 per month.
At present I pay about £375 a year . Ground rent £18 a year .
Whoever does buy my place has a bargain on that side of things .
Lease 999 years

another_casualty

Just looked at my experian credit score from June last year:
White label ( 2nd mortgage ) outstanding balance £ 14,306.
Now about £14,000 approx £210 per month
Including fees £14,000 total outstanding

Santander mortgage : £ 76,688 / £548 per month
No fee to complete ( this was last June figure , so I owe 14 months less now.

Total owed to everyone £107,055.
The cost of moving / solicitors cost should be added to this (£15,000 ??)
So roughly £123,000? I'm rubbish with figures

lessonlearned

I have rounded everything up so obviously you could be a couple of hundred or so better off.

Outstanding mortgages £91k
Pay plan £24k

I make that £115k

Then moving expenses

Selling fees

Estate agent
Solicitor
Final accounts for all utilities

Buying fees

Solicitors fees plus all disbursements ie search fees etc
Survey
Stamp duty

No mortgage arrangement fees etc

Removal van

Your own " peace of mind" checks. Ie electrician and plumber

I always add a contingency For the "unexpected"

Unless Im buying a new build I never trust their boilers. I get my own trusted plumber to check them out and always budget for a new boiler just in case.

A budget for any remedial works, redecoration, new floorings, possibly some new furniture.

Then you need to think about running costs in your new home.

Is there any particular reason why you are confining your search to apartments. Service charges can be high. How about a nice little town house.

Newer properties might be more energy efficient although I appreciate older properties often have more "charm".....

Newer builds might suit your long term needs......ie older properties can have very steep staircases and lots of nooks and crannies which might make life difficult if you experience mobility issues in later life.
New builds can be more wheelchair/zimmer frame friendly.

I know I know, no one wants to think about that but if it is to be your forever home then you do need to think about such matters.

Which is another good reason to rent for a little while whilst you find the right property to meet your long term needs. If you get it wrong it could prove a very expensive mistake.

I know you are not keen but Six months in a rental could be the best investment you ever make.

Just edited to add - I had forgotten stamp duty on your purchase.

I think you estimated moving costs of £15k are a bit on the low side. I would think £20k would be nearer the mark to build in some contingency.