We have been making offers on various properties on the whole at around 20-25 % below market value, this is a lot considering in these locations it is rare to get even 10%, that is if you manage to source a property in such locations in the first place.
There exists a window of opportunity to pick up properties in prime locations. Rest assured this will not last for a long time.
There have been a couple of occasions where we have overplayed our hand a little, there was a block which I was convinced no one would purchase apart from me. It had been knocking around for a while, and there was currently a fresh buyer on it. I assumed that although they had pulled the contract they would take their time, I stood corrected, the deal was exchanged at £2.7m.
This is a ripe market for picking up stock. There are some who still sit on the fence even in these market conditions. They claim it’s going to get worse and therefore there will be better deals down the road. The bottom line is no one knows for sure. Secondly each property is unique, it will likely not be up for grabs later down the line. There are two benefits for a buyer in this market, the first is the discount and the second is the ability to be choosy about what you purchase. It’s not enough just to get a discount on a property it also needs to have a good feel about it, this comes from the features it has and the direction its facing, as well as the layout.
This is the case with a property we have just agreed in Queensway. Not only is it very cheap at £880 per sq. ft., it’s in the best part of the block, south facing, well laid out, high ceiling and on the first floor of the block. This is an area which is destined to rise strongly in price in years to come, according to Knight Frank’s report. There are many factors which will ensure this area will rise in price, this is compounded by the very little new supply of properties which are due to come on the market. The report analysed how many new properties were due to come on the market according to the plantain permission received and how many where actually being built. In short there will be a massive under supply in an area which is rising fast.
The contract is in and the deal is awaiting an investor. Call us now to buy!
House of ill fame
A lady offered the asking rent on a new build two bedroom flat we had put on the market to let, on behalf of a landlord. She passed referencing and she even met with the landlord and he commented how nice she was and such a perfect fit for the property so much so he did not want us to manage the property but only to provide a tenant introduction service.
I endeavored to persuade the landlord to take up our full management service whereby we collect the rent and conduct property inspections but he had his mind set.
This means after the introduction everything from that point onwards is between the tenant and the landlord.
The old saying that no news is good news is not always best as 8-9 months into the tenancy the landlord called me and asked if the police had been in touch with me!??
He then went on to inform me of the nightmare that he had been living recently which started with a complaint from the property’s neighbor regarding loud noise/music coming from the property in the early hours which got worse with time, until eventually the neighbor called the police as she was concerned that there was lots of comings and goings of men at all hours and she was worried that the house might be being used as a brothel. To conclude the landlord was arrested on suspicion under the Proceeds of Crime Act as the police had been monitoring the property. He was then questioned and cautioned.
It transpired that they had arrested the tenant as she was running the property as a cathouse, when she was arrested she informed the police that the landlord had given permission for her do this!! The tenant was charged and faced prison time with deportation after the sentence had been served, the landlord had his arrest quashed as there was no proof either way that he was aware of the situation.
One thing to remember is that it does not matter if you are right or wrong as this won’t protect you, it is what can be proved in a court of law! In this situation the alarm would have been raised earlier if inspections had been conducted and if the cash rental payments had been questioned. Moral of the story: don’t be cheap with your most valuable asset and contact us today.
