Paul R Posted March 10, 2008 Report Share Posted March 10, 2008 Hi, I'd like to sell my 2 bed modernised terraced house in Nantwich, Cheshire. It has 2 tennants living in it with a contract ending in July. Current rent is a discounted 450 a month (discounted as I was doing work, putting a new central heating system in for about 3 months after they moved in). Normal rent is 495. Been valued at 125-130k (obviously i'd sell at 125 to avoid stamp for the buyer). Any interest or investors I could approach? Cheers, Paul. Link to comment Share on other sites More sharing options...
Paul R Posted March 10, 2008 Author Report Share Posted March 10, 2008 Forgot to say, I'll take offers Paul. Link to comment Share on other sites More sharing options...
odecar Posted March 10, 2008 Report Share Posted March 10, 2008 £90k - based on rent max value would be £95k. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 10, 2008 Report Share Posted March 10, 2008 I make it 92.5K based on £450pcm rent, 85% ltv @5.5% and Rent multiple 125% as "investor" market value ! THESE ARE THE REAL FIGURES THAT AN INVESTOR SHOULD BE SEEING.... As market unsure at present then 20% off this ..... with my offer being the very insulting £70K ......Cash complete in 14 days subject to viewing and survey .....??! Any good to you Paul ? Would recomend that the rent needs to go up "considerably" OR the market you are looking for is FTB OR the valuer was pixxxd when he did this valuation !!! At Valuation figs : Purch 125k 15% dep leaves 106250 on Mort at 5.5% ....5843pa (486pcm) with rent of 450 ??????? No money in the kitty for ins, servicing, repairs etc............. plus ......Mortgage co will want to see 486 x 125% as rent which is £607.50 Not to mention the expected downturn in prices ! The Rodent Sorry !! Link to comment Share on other sites More sharing options...
Paul R Posted March 17, 2008 Author Report Share Posted March 17, 2008 I make it 92.5K based on £450pcm rent, 85% ltv @5.5% and Rent multiple 125% as "investor" market value ! THESE ARE THE REAL FIGURES THAT AN INVESTOR SHOULD BE SEEING.... As market unsure at present then 20% off this ..... with my offer being the very insulting £70K ......Cash complete in 14 days subject to viewing and survey .....??! Any good to you Paul ? Would recomend that the rent needs to go up "considerably" OR the market you are looking for is FTB OR the valuer was pixxxd when he did this valuation !!! At Valuation figs : Purch 125k 15% dep leaves 106250 on Mort at 5.5% ....5843pa (486pcm) with rent of 450 ??????? No money in the kitty for ins, servicing, repairs etc............. plus ......Mortgage co will want to see 486 x 125% as rent which is £607.50 Not to mention the expected downturn in prices ! The Rodent Sorry !! No you dont understand. The current value of the house IS 125-130k. The mortgage I have on the house is 87k, so the rent covers the mortgage. The reason I have the house(my original main place of residence) is I needed the equity out of the property to buy my new house and had to act quickly. Like I said, the rent IS too low as The house needed work when I started to let it out, which is now complete. So obviously the rent will go back up in July to the market rate. So, the market value is 125, with tennants, rent will go back to market value in July. I'd take offers on the market value, obviously with some discount. The house is in a sought after area of cheshire, close to the town, schools and supermarkets. Similar houses without gardens have sold recently for 118k. Cheers, Paul. Link to comment Share on other sites More sharing options...
Matthew Posted March 17, 2008 Report Share Posted March 17, 2008 Hi Paul, Roden't comments do still stand though, if I put down 15%, most mortgage companies will still want to see 125% of mortgage payment. So rent will need to be in excess of 600 pounds, whereas your comment earlier says normal rent is 490pcm. At 125K, this works out at a yeild of 4.7 %. Not great. Since capital appreciation is deemed to be flat for the next 3 years or so, I can't see investors taking it. It sounds like it is more suited to first time buyers and as such is probably worth waiting for the tenants to leave. I don't think anybody is saying that the property is not worth 125K, it's just not worth that to an investor. Put simply when I was last in the market for a property, I saw one for over 500K which would rent for about 1,800pcm. I saw another one for 200K which would rent for 1,800pcm. You can guess the one I bought. However the other one was worth that...to a family, not an investor. The property I bought had a small garden, is an ex-council house and is generally not as nice an area......but is 5 mins from Brighton university! I would love to be able to buy a 2 bed house in my area for that :-) I'm currently selling my 1 bed flat, which is up for 225K, will rent for about 800 to 850 per month..... any takers? I thought not. Great home, seafront square, grade 1 listed, study, massive rooms etc...... but the figures just don't add up for an investor, so I'd probably get an offer of 140K from Rodent! Good luck on your sale. Link to comment Share on other sites More sharing options...
odecar Posted March 19, 2008 Report Share Posted March 19, 2008 Whats its worth is irrelevant its what someone will pay, given MX have added .6% to their rates today so your property is worth even less to an investor than 2 weeks ago. An estate agent valuing a place is a guide price only especially as you can walk into EA's and offer way below asking price and get properties easily, nationally was 7% less than asking price last summer, now 10-15 easily. Get the rent up but even at £600 a month rent its worth just over £110k. Max would look at a prop would be 190 times rent but at the moment wouldn't even come close to that as lots props available. Link to comment Share on other sites More sharing options...
Matthew Posted March 19, 2008 Report Share Posted March 19, 2008 The situation is being blown well out of proportion. If the media was not making such a big deal about it, there would not be any risks of property prices falling. The papers are constantly saying Mortgage payment shock! But the figures they use as examples go on to prove that the average household has to find another £100 a month. Also the fact that this is the only increase they have had over the period of their mortgage 2 year, 3 years, 5 years! There is not a huge problem with real repossesions - only newbuild or company involved sales (fraud). The fact is renters are the ones in real trouble of "rent shock". Rents are up about 4% in the last quarter....expectations of analysts is that 15% rent increases will be on the cards for the next 5 years (thats 100% in 5 years). The average rental thats what about £800 increase.... and the papers are worrying about £100 increase over 5 years..... madness! In my opinion it is a great time to buy, with rents due to rise at such rates. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 19, 2008 Report Share Posted March 19, 2008 No you dont understand. The current value of the house IS 125-130k. The mortgage I have on the house is 87k, so the rent covers the mortgage. With all due respect Paul ...."YOU" dont understand ! ....the rent covers "your" Mortgage at 87K ...... but a new investor will need to cover 125-130K worth of mortgage cost (or borrowings/investment wether that be be as cash payment or mortgage or mixture of both !) Ask yourself this question .....would you want, as an investor to pay 125-130K (cash/mortgage!) for a return such as you detail ????????????? Cos as in investor ...I wouldn't.... I like you ..but let me tell you where i am am on this .....I'm out ! The Rodent Link to comment Share on other sites More sharing options...
plym77 Posted March 20, 2008 Report Share Posted March 20, 2008 perhaps your best option is to try and sell the property vacant. A first time buyer is looking for a home more importantly that an annual return. Risky to wait I guess with the market as it is - so you either wait it out or if you are desparate to sell, perhaps some sort of incentive for them to leave early? ....just a suggestion Sherena Link to comment Share on other sites More sharing options...
simhar Posted March 20, 2008 Report Share Posted March 20, 2008 I'd listen to Sherena! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted March 20, 2008 Report Share Posted March 20, 2008 I'd listen to Sherena! How helpful ! Link to comment Share on other sites More sharing options...
Paul R Posted April 2, 2008 Author Report Share Posted April 2, 2008 With all due respect Paul ...."YOU" dont understand ! ....the rent covers "your" Mortgage at 87K ...... but a new investor will need to cover 125-130K worth of mortgage cost (or borrowings/investment wether that be be as cash payment or mortgage or mixture of both !) Ask yourself this question .....would you want, as an investor to pay 125-130K (cash/mortgage!) for a return such as you detail ????????????? Cos as in investor ...I wouldn't.... I like you ..but let me tell you where i am am on this .....I'm out ! The Rodent I do understand, I'm not an idiot as you seem to try to make out. Pull that monkey out of your arse I'm simply stating what the house is worth. I've also stated why the rent is low and the reason for selling. I also said the rent would go back up to the market rate.......which is going to be closer to 600 pcm by the time the agreement is up. If it's not worth investing in then i'll sell it when the tennants move out. simple really. Paul. Link to comment Share on other sites More sharing options...
Paul R Posted April 2, 2008 Author Report Share Posted April 2, 2008 perhaps your best option is to try and sell the property vacant. A first time buyer is looking for a home more importantly that an annual return. Risky to wait I guess with the market as it is - so you either wait it out or if you are desparate to sell, perhaps some sort of incentive for them to leave early? ....just a suggestion Sherena Hi, Thanks, This is what I think i'll do. Prices in Nantwich are still going up, all be it slowly, so i dont think i'll lose out by waiting....just might take w while to sell.. Paul. Link to comment Share on other sites More sharing options...
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