Selling btl in today’s market?
Discussion
Badda said:
I’m tempted to sell one of my cheaper flats. I had a chat with an agent about 4-6 weeks ago and he pretty much laughed at the concept of trying to sell given the current mortgage market. Have things changed at all? It’s in Plymouth btw.
There is still cash about. Not everyone needs a mortgage. If I was forced to guess, I'd say that now is going to be a better time to sell than in a year's time.Try selling. You've nothing to lose.
Off Topic: I have just been reading Andrew Bailey's (BofE chief) comments about interest rates peaking at 4.5%. I don't know if that is sabre rattling or he means it. If it's the latter I think they are completely out of touch with the domestic situation. There will be millions of people who are properly screwed and the housing market will be crippled.
sniff diesel said:
Costs nothing to list it with an agent, trouble is it'll probably prompt the current tenant to move out so you're lumbered with the council tax as well as the loss of rent. If it was then up for rent/for sale at the same time that tends to put off prospective tenants.
Thanks sniff. The question is just about the market really as I’m happy deciding on when/how around tenancies. Louis Balfour said:
There is still cash about. Not everyone needs a mortgage. If I was forced to guess, I'd say that now is going to be a better time to sell than in a year's time.
Try selling. You've nothing to lose.
Off Topic: I have just been reading Andrew Bailey's (BofE chief) comments about interest rates peaking at 4.5%. I don't know if that is sabre rattling or he means it. If it's the latter I think they are completely out of touch with the domestic situation. There will be millions of people who are properly screwed and the housing market will be crippled.
Cheers LB. Try selling. You've nothing to lose.
Off Topic: I have just been reading Andrew Bailey's (BofE chief) comments about interest rates peaking at 4.5%. I don't know if that is sabre rattling or he means it. If it's the latter I think they are completely out of touch with the domestic situation. There will be millions of people who are properly screwed and the housing market will be crippled.
vulture1 said:
Badda said:
Interestingly I spoke to another agent just now who stated it's very bouyant down there and have done 200+ viewings this month alone so I'm going ahead with trying to sell.
Thanks all.
Sounds like the first agent is just bad at their job...Thanks all.
Louis Balfour said:
Off Topic: I have just been reading Andrew Bailey's (BofE chief) comments about interest rates peaking at 4.5%. I don't know if that is sabre rattling or he means it. If it's the latter I think they are completely out of touch with the domestic situation. There will be millions of people who are properly screwed and the housing market will be crippled.
When they said rates would need to be 2% people didn’t believe it.Then when they got to that future, they said 3%, and so on.
There is no strong evidence inflation is falling, indeed it’s moved from transient energy and consumables into services and durable goods which is likely harder to wind back.
If they’re saying 4.5% today it’ll probably be 5% by the time we get there.
Only when the wheels come off will they start to think differently.
God knows what big builders are thinking wrt the housing market.
I’m invested in a development ready to go to market so it’ll be interesting what the bidders outlook is. I’m guessing 24 months turn around to retail so personally I’m hoping SHTF asap so we’re on our way out of the storm rather than still heading into it.
We sold our least profitable one last year. Got offer for full asking price within 24 hrs. Cash (ie no mortgage) transaction.
Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
MarcelM6 said:
We sold our least profitable one last year. Got offer for full asking price within 24 hrs. Cash (ie no mortgage) transaction.
Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
Why would institutional buyers be buying falling value assets?Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
Unless they’re assuming/working under the assumption rental prices and thus yields will remain good?
But if that is the case why are BTLers selling up? Literally just the interest costs?
MarcelM6 said:
We sold our least profitable one last year. Got offer for full asking price within 24 hrs. Cash (ie no mortgage) transaction.
Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
Interest rates aren't immaterial Buyer was a Local Housing Authority who are desperate for stock. They don't seem to be short of funding and interest rates are immaterial to them.
Probably other institutional buyers out there who are cash rich.
Most HAs that I know have large financing agreements in place ready for developmentHowever there's a huge need for social housing and at the moment it's costing £175k to build new properties IF you can find the land, and IF you can find the Contractors. they're also losing properties through RTB/RTA so they need to run to stand still. If a property is in good condition and in the right area it makes complete sense to buy it.
In terms of selling I've got a (supposed) cash buyer for one at the moment (I hope). It's odd - before Xmas it was up for 3 months and not a single viewing, then we suddenly had two viewings last Saturday and one tomorrow.
jayxx83 said:
Swift estate agents in Plymouth are excellent. Bought a few from them and they are very realistic and honest in their approach.
We have lots of clients buying HMO down there. Amazing returns.
Yeah I’ve bought from them before too and like them. We have lots of clients buying HMO down there. Amazing returns.
So agent is instructed, valuation carried out and if it gets the valuation, I’ve made 100% profit in 8 years which I’d be delighted with!!
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