How far will house prices fall [volume 4]

[HoHoHo]

hyphen said:

So what do we think?

https://www.standard.co.uk/business/entrepreneurs-...

A new estate agent startup, their USP being that they lend you the cash to buy your next home whilst selling yours!

Webuyanyhouse.com......

[stuckmojo]

HoHoHo said:

Webuyanyhouse.com......

This.

[Tebbers]

Bought for £2.175m in 2014, ‘extensively redesigned and refurbished’ and now on the market for £2m. Good bit of business that.

https://m.zoopla.co.uk/for-sale/details/48579074

[HoHoHo]

stuckmojo said:

HoHoHo said:

Webuyanyhouse.com......

This.

Nothing more, nothing less.

The difference is simple. Houses are far harder to sell and the numbers are different.

I would be interested in establishing how they value your house. As a person who is going through the selling and buying process as I write my house has sold for 6% less than the average valuation (from 4 agents) and two houses we offered on we’re both accepting lower offers from their valuations - one being 25% less than original asking price and the other 10% less than the original asking price.

With selling prices/offers so different from valuations they will have to value pretty low in order not to take a hiding and be out of business by 2020.

[stongle]

mike74 said:

hyphen said:

So what do we think?

https://www.standard.co.uk/business/entrepreneurs-...

A new estate agent startup, their USP being that they lend you the cash to buy your next home whilst selling yours!

Given that over half the houses currently on the market have asking prices (and vendors) so delusional that they fail to achieve a sale and subsequently get withdrawn and there's another large proportion of the market who are prepared to leave their property sat for years in some cases at kite flying asking prices... I don't see how they can make much of a go of this other than with the very small proportion of genuine, realistic and motivated vendors who are willing to price the property sensibly from the start to achieve a relatively quick and easy sale.

Well given their lending rates anything reasonably priced and sells within 3 months yields then 14% annualised. Raising finance not overly problematic as they have a short term ABS. Should be clearing 8-10% minimum on advances alone.

Expect the valuations to be at the conservative end of the scale and expect it only really works below a £1m. They suggest they eat the first loss, but ways around that. I also suspect whomever is the funding vehicle has set limits to advance to minimise losses. Interesting thread is interesting. Most London property isn't superprime, reading this thread you d think it was.

As a standalone business model, low risk, high return not bad. Hugely correlated to service sector employment though.

[ClaphamGT3]

anonymous said:

[redacted]

Added to that, it is a compromised refurb, designed to cram 5 beds and 3 baths into a natural 1600sq ft house - that's hard enough to do well in a natural 1750sq ft, the kitchen is hideous and the garden is small compared to what you can get for similar houses in other parts of SW6

[Burwood]

Is that only 1600sft?

[ClaphamGT3]

Burwood said:

Is that only 1600sft?

Not now but the house as originally built would have been 1600 sq ft

[jeremyc]

New volume of this thread over here