Need advise on what to do with my property

chucknorris

geoffky wrote: »

one year too late,

Totally agree you have 'missed the boat' in terms of selling and buying later IMO. Buyers are putting in offers below the asking price and prices have already dropped about 22% and IMO only another 10% to fall until a period of stagnation is reached. By the time you accept an offer of say 6% off, pay solicitor's fees for both buying and selling, estate agent's fees, stamp duty, mortgage fees, valuation fees, furniture storage fees and not to mention the huge amount of time and effort in buying a place then you may as well rent it out and keep it.

However if you were thinking about moving anyway for a bigger/smaller or different area then that's a different story! as it takes all those fees out of the equation.

I have to say though that the rental market is being hit too, I have just today reduced my rent by 10%, still a month to go until my existing tenants move out. But after a week of advertising, I only have only heard from agents and (obvious) scammers at the current rent. Wheras last year I not only had found my existing tenants after about a week but I had people trying to gazump that rent (although I told them it was too late I had already given my word over the telephone despite no exchange of money/contracts etc). I would rather drop it now than suffer a void then drop the rent.

ILW

freddiebigbucks wrote: »

Hi, thanks for all the replies so far everyone, much appreciated (though I'm still completely undecided!).

As for a little more info, I'm 20 years old, my parents are wealthy and the flat was bought outright for me to get me on the ladder, but I don't have a high-income job or anything.
I'm not at Uni, and (thankfully) don't have any kids to worry about haha

However, I am in a serious relationship which is a big consideration in regards to travelling.

Like I said in my original post, I'm really wondering whether it's a better financial option to sell the flat now (regardless of whether I travel or not, even if I kept the flat i could just rent it out for about £400 per week and live off that) or sell it, have the cash in the bank and wait until prices (hopefully, thats the risk) fall, and pick up a bargain.

Also, if I did decide to stay in london and rent out somewhere, it wouldn't be a major deal, I could either split rent with a friend somewhere, or just rent a room for cheap from one of my parents places in london (but they are generally all located around chelsea area and I'm in NW london so it's not exactly ideal).

Still not any closer to a decision though =\

PasturesNew: of course I'm tall dark and handsome! just not single though =p

Lucky [EMAIL="B@st@rd"]B@st@rd[/EMAIL]

Thrugelmir

chucknorris wrote: »

I have to say though that the rental market is being hit too, I have just today reduced my rent by 10%, still a month to go until my existing tenants move out. But after a week of advertising, I only have only heard from agents and (obvious) scammers at the current rent. Wheras last year I not only had found my existing tenants after about a week but I had people trying to gazump that rent (although I told them it was too late I had already given my word over the telephone despite no exchange of money/contracts etc). I would rather drop it now than suffer a void then drop the rent.

Thanks for the insight into the real world.

Is there more rental property coming onto the market in your area?

chucky

chucknorris wrote: »

I have to say though that the rental market is being hit too, I have just today reduced my rent by 10%, still a month to go until my existing tenants move out. But after a week of advertising, I only have only heard from agents and (obvious) scammers at the current rent. Wheras last year I not only had found my existing tenants after about a week but I had people trying to gazump that rent (although I told them it was too late I had already given my word over the telephone despite no exchange of money/contracts etc). I would rather drop it now than suffer a void then drop the rent.

i had to do this on both December and February at about 8%.
it's not too much of a problem especially with the low rates available at the moments.

getting tenants in wasn't too much of a problem either - maximum void i think was about 10 days.

it's a tough rental market but as long as your rents are pitched at the right amount - things shouldn't be too bad

chucknorris

Thrugelmir wrote: »

Thanks for the insight into the real world.

Is there more rental property coming onto the market in your area?

Well the thing is I tend to rent out at reasonable prices so in previous years my property has rented quickly so I haven't had to study the competion too much, although in 2005 I did again use an agent in addition to my own efforts (instructed an agent this morning).

I would say it is a case of where have the renters gone rather than too much competion from other properties, as my flat was reasonably priced against the competition but priced 10% higher due to it's superiority. Which is an additional ensuite, a wc is the main bathroom as well as a separate wc, which is important in a 3 bed flat. But it might well be that tenants are ecomonising and going for the cheaper properties.

So I have now cut mine to just below that of the competition and with the larger rooms, better street, better common areas, only being in a block of 4 four privately owned flats and the additional bathroom/wc, I hope to see some interest now.

chucknorris

chucky wrote: »

i had to do this on both December and February at about 8%.
it's not too much of a problem especially with the low rates available at the moments.

getting tenants in wasn't too much of a problem either - maximum void i think was about 10 days.

it's a tough rental market but as long as your rents are pitched at the right amount - things shouldn't be too bad

Yes this wasn't unexpected but I thought as there was plenty of time I would try for a week at the current rent. I was however a little suprised at receiving no responses at all (other than from agents and scammers). As with you I am now on great (tracker) rates so even though I am dropping 10% I am still far better off than last year

Yakubu22

kellybigboobs wrote: »

gorgeous george,that's funny!

Is your username related to particular assets?

Thrugelmir

chucknorris wrote: »

Well the thing is I tend to rent out at reasonable prices so in previous years my property has rented quickly so I haven't had to study the competion too much, although in 2005 I did again use an agent in addition to my own efforts (instructed an agent this morning).

I would say it is a case of where have the renters gone rather than too much competion from other properties, as my flat was reasonably priced against the competition but priced 10% higher due to it's superiority. Which is an additional ensuite, a wc is the main bathroom as well as a separate wc, which is important in a 3 bed flat. But it might well be that tenants are ecomonising and going for the cheaper properties.

So I have now cut mine to just below that of the competition and with the larger rooms, better street, better common areas, only being in a block of 4 four privately owned flats and the additional bathroom/wc, I hope to see some interest now.

I can see the BBC Website headline .....

"Desperate Property Investors reduce rents as tenants disappear".

chucknorris

Thrugelmir wrote: »

I can see the BBC Website headline .....

"Desperate Property Investors reduce rents as tenants disappear".

Not quite desperate enough to deal with Foxtons though! They rang me this afternoon (even though my ad says 'no agents'). I said straight away well I don't really use agents but in this market I will listen to what you have to say. As expected she said she had a list of potential tenants that would probably be interested in my flat.

I said ok then this is what I would want:

1. Your fee is added to the rent I am advertising at as a percentage increase based on one years rent. Don't forget to add the VAT on too.
2. I insist on using my own contract and I will deal with this.
3. I will also do the inventory and deposit protection.
4. I will not pay renewal fees so if you feel that is disadvantageous you should add a higher percentage on to compensate yourselves.

She then said that they couldn't agree to those terms, because their clients really appreciate their terms and conditions and rely upon them :rotfl:which I took as code for "But we wouldn't be able to screw more fees out of the tenants if we agreed to that"

chucky

chucknorris wrote: »

Not quite desperate enough to deal with Foxtons though! They rang me this afternoon (even though my ad says 'no agents'). I said straight away well I don't really use agents but in this market I will listen to what you have to say. As expected she said she had a list of potential tenants that would probably be interested in my flat.

I said ok then this is what I would want:

1. Your fee is added to the rent I am advertising at as a percentage increase based on one years rent. Don't forget to add the VAT on too.
2. I insist on using my own contract and I will deal with this.
3. I will also do the inventory and deposit protection.
4. I will not pay renewal fees so if you feel that is disadvantageous you should add a higher percentage on to compensate yourselves.

She then said that they couldn't agree to those terms, because their clients really appreciate their terms and conditions and rely upon them :rotfl:which I took as code for "But we wouldn't be able to screw more fees out of the tenants if we agreed to that"

i'm allowed the first 3 points with Foxtons but i pay 11% commission unfortunately - the last one is a no,no they won't have it.

they have tenants that are graded and say they won't do stuff like that. just say you'll do it, once you get the offer in say you don't want it. they're not going to turn around and tell their client that can't rent the property because of the tenancy agreement etc... they just accept it.

there are other benefits with dealing with Foxtons though - i'm not disappointed at all