BTL Anecdote - prices plumeting

mystic_trev

As some of you are aware, I put one of my BTL's up for sale about 6 weeks ago. Last previous sale of an identical property £195,000 31/08/07 I stuck mine up for £184,950 - a few nibbles but no takers. One offer £170,000 rejected, even the EA laughed!

Today, EA rang, someone interested but too expensive offered high 160's!

I'm going to take it off the market and rent it again. I've just spent nearly £8,000 doing it up so they'll to problem finding tenants. In the 10 years I've rented it i've only had a couple of weeks voids.

So anyway what does this prove? Well in prime West Sussex Properties appear to be dropping by 8% in seven months! Yes, I know it's a flat, but it's in a prime position as well, and much sought after by older folk!

Gorgeous_George

I might have taken high £160Ks - unless rent is £15K per year.

You could buy it back for £100K in a couple of years' time.

GG

SouthCoast

The history of a BTL West Sussex property.

Bought new £220k Feb 2004

Sold £285k Nov 2004

Sold at auction 26/3/08 £200k.

owitemisermusa

SouthCoast wrote: »

The history of a BTL West Sussex property.

Bought new £220k Feb 2004

Sold £285k Nov 2004

Sold at auction 26/3/08 £200k.

Is this your story? Blimey! Scary!

meanmachine_2

mystic_trev wrote: »

As some of you are aware, I put one of my BTL's up for sale about 6 weeks ago. Last previous sale of an identical property £195,000 31/08/07 I stuck mine up for £184,950 - a few nibbles but no takers. One offer £170,000 rejected, even the EA laughed!

You laughed at someone offering 92% of the property's sale value?

chappers

the problem in some areas isn't just to do with the actual price some people are finding there are not any buyers out there full stop, the unrest in the market caused by caution and media fueled caution mean that b some buyers are holding off buying thinking there will be a firesale and personally speaking I don't think it is going to happen, at least for the time being.the market will contract and those needing to sell will reduce theier prices and those needing to buy will buy the reduced price houses. those with decent deposits/LTV and decent lending multimples will still be free to buy the house they want regardless of its price

RHemmings

Gorgeous_George wrote: »

I might have taken high £160Ks - unless rent is £15K per year.

You could buy it back for £100K in a couple of years' time.

GG

GG,

Boy you've gone bearish recently. What's up?

brit1234

I would take it off the market if you are not prepared to go down to £160K as the offers will only get smaller as lending criteria gets tighter.

Benefits_Blagger

mystic_trev wrote: »

As some of you are aware, I put one of my BTL's up for sale about 6 weeks ago. Last previous sale of an identical property £195,000 31/08/07 I stuck mine up for £184,950 - a few nibbles but no takers. One offer £170,000 rejected, even the EA laughed!

Today, EA rang, someone interested but too expensive offered high 160's!

I'm going to take it off the market and rent it again. I've just spent nearly £8,000 doing it up so they'll to problem finding tenants. In the 10 years I've rented it i've only had a couple of weeks voids.

So anyway what does this prove? Well in prime West Sussex Properties appear to be dropping by 8% in seven months! Yes, I know it's a flat, but it's in a prime position as well, and much sought after by older folk!

this thread sums up the greed of a typical BTLer, they dont mind buying a property and selling it for a higher price but its a different story when the market is tumbling.

just to give you a clue it'stumbling, from your post we have, £195k,then £185k, Then £170K now high £160's. have you not noticed a trend?

just because a property went for £195k last year, doesnt mean you can expect the same price now. afterall lets say hypothetically you bought it for £120K last year and it had risen to £180k, would you sell it for £120k ?

no of course you wouldnt, so just as you accept the gains when the market rises, accept the losses when it's falling.

teabelly

What would it rent for? If you are getting low offers it is probably because the rent won't cover the higher asking price with the BTL mortgages on offer at the moment. 2 months ago a rate of 5.1% was easy to get. Now it is more like 6.1% which stops an awful lot of potential deals working.

You want nearly 200k for a flat? Flat prices are dropping due to the over supply of new build tat. If the new builds are cheaper then you have no chance. Flats rise faster in good times and fall faster in bad times so you have to expect that.

Keep it and carry on renting it out as flats aren't really selling anywhere. Assuming the rent actually covers the mortgage of course...

mystic_trev

There's no greed in my Investment. My Properties owe me nothing and the only reason I was selling was to 'lock in some Capital gain' The property in question has more than trebled in the 10 years I've owned it. My Properties are just part of my Investment portfolio, in fact account for under a third. No greed just part of a balances portfolio of Investments. I was in long before the BTL muppets thought this was a one way ride to riches!