Facing loss on new build flat sale in Clapham, London

jimbog

I think you are being over optimistic with the price. The market will dictate what you'll be able to sell it for. If desperate consider a traditional auction

saajan_12

Are you still living there or has the property been empty for over a year? If so, a tenant might have paid £12-18k over the year (I'm assuming the area goes for 1-1.5ka month?). Or you could have saved the monthly mortgage on the property .

Waiting more time is not the answer, and it won't sell until the asking price is more in the range of the market price. Ask your agent to suggest a realistic price and show you the comparable local places to back that up. Then price it to sell and get on with better using the money.

Note a webuyanyhouse is worse than drastically lowering the price, as they'll just work out the market price and knock q bunch off for their work and profit. You could just do that yourself with an agent and keep the profit element.

ReadySteadyPop

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though. Will they pay the rent and look after the property?

MobileSaver

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

ReadySteadyPop

MobileSaver said:

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

In Clapham though it looks like it is hard to sell one bed properties, won"t a lot of landlords just be stuck with their investment renting to whoever comes along just to cover their basic costs?

MobileSaver

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

In Clapham though it looks like it is hard to sell one bed properties, won"t a lot of landlords just be stuck with their investment renting to whoever comes along just to cover their basic costs?

According to Spareroom, average rents in SW postcodes are up 8% from Q4 2022 to Q4 2023, that doesn't suggest landlords are desperately renting to whoever come along! LOL

ReadySteadyPop

MobileSaver said:

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

In Clapham though it looks like it is hard to sell one bed properties, won"t a lot of landlords just be stuck with their investment renting to whoever comes along just to cover their basic costs?

According to Spareroom, average rents in SW postcodes are up 8% from Q4 2022 to Q4 2023, that doesn't suggest landlords are desperately renting to whoever come along! LOL

Why is the OP struggling to sell and facing a loss on what they paid for their flat in that case, why isn`t it being snapped up by a BTL investor? Spareroom obviously want to encourage people to list rental space with them, I wouldn`t trust their figures.

MobileSaver

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

In Clapham though it looks like it is hard to sell one bed properties, won"t a lot of landlords just be stuck with their investment renting to whoever comes along just to cover their basic costs?

According to Spareroom, average rents in SW postcodes are up 8% from Q4 2022 to Q4 2023, that doesn't suggest landlords are desperately renting to whoever come along! LOL

Why is the OP struggling to sell and facing a loss on what they paid for their flat in that case, why isn`t it being snapped up by a BTL investor?

Because he's found himself in one of the few situations where you will almost always lose money; he bought a new build at a new build premium but then decided to sell after just a few years.

ReadySteadyPop

MobileSaver said:

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

Sarah1Mitty2 said:

LegallyLandlord said:

Sarah1Mitty2 said:

That was before the base rate hit 3.5% though.

True. That’s a very good point, and the rates for  buy to let mortgages tend to be higher than for owner occupiers, requiring a minimum loan to value of 75%. 

Margins were very low for landlords before the base rate went up. I personally sold my flat after 2 years of renting as the yield was too low because of the service charge. 

The economics of selling v renting it out will depend on so many factors, and with base rates higher, being a landlord is less attractive now. But properties in London do tend to have good capital growth over time, if they’re in a good location, something else to put in the mix. 

I tend to think that in this case they could soften the blow of any loss of value by getting a tenant in, but it has to be the right tenant and the landlord has to get the legal/health and safety stuff right nowadays?

How easy is it to get a good tenant in your area though.

No idea on the OP's area but around here it would be the easiest thing in the world. 

The few landlords I know have people clamouring for rental properties and landlords can be as picky as they want with who gets what; the anti-landlord rhetoric, rules and regulations over recent years has backfired spectacularly and made it harder and more expensive than ever for most renters.

In Clapham though it looks like it is hard to sell one bed properties, won"t a lot of landlords just be stuck with their investment renting to whoever comes along just to cover their basic costs?

According to Spareroom, average rents in SW postcodes are up 8% from Q4 2022 to Q4 2023, that doesn't suggest landlords are desperately renting to whoever come along! LOL

Why is the OP struggling to sell and facing a loss on what they paid for their flat in that case, why isn`t it being snapped up by a BTL investor?

Because he's found himself in one of the few situations where you will almost always lose money; he bought a new build at a new build premium but then decided to sell after just a few years.

Maybe, but if rental was so profitable there would surely have been lots of interest from landlords trying to beat the price down so they could get a taste of all the rental profit that is supposed to be out there? (as I said though I wouldn`t put much value on a press release from a company that makes money from landlords signing up to advertise with them saying that renting is super profitable!)

markin

Are the photos good? If its been on a year maybe rest it for a month, look at changing agent.

Did the other flat sell?

Looking at listing all 'new' built flats are hanging on in hope of getting 400K, 375 gets older building and above shops, So they all seem to be in denial.