Homes under the Hammer: greed is bad

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Homes under the Hammer: greed is bad

    Just watching homes under the hammer. A couple have renovated a 1 bed flat in London, cost 200,500 and "approx 15000" spent (sounds optimistic). Revalued at 275-280, so good profit in it no matter what.

    The presenters have said "with an annual income of 11,000 this will comfortably pay the mortgage and give a good yield".....

    3.9% (on value) or 5.1% (on spend) or 5.4% (on original purchase price).... great yield!!!

    Hmmm, 65k instant profit... I think I'd sell!
    Liability statement. My liability to you is not to exceed the amount you are paying for my recommendations or advice.

    I see a bright new future, where chickens can cross the road with no fear of having their motives questioned

    #2
    Originally posted by Wickerman View Post
    Just watching homes under the hammer. A couple have renovated a 1 bed flat in London, cost 200,500 and "approx 15000" spent (sounds optimistic). Revalued at 275-280, so good profit in it no matter what.

    The presenters have said "with an annual income of 11,000 this will comfortably pay the mortgage and give a good yield".....

    3.9% (on value) or 5.1% (on spend) or 5.4% (on original purchase price).... great yield!!!

    Hmmm, 65k instant profit... I think I'd sell!
    Yield should be based on current value- so the £11 000 sounds rubbish return on £280 000 value unless the value is going to rise even further.
    Greedy people always say, "Please, sir, can I have some more?"
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      Originally posted by jeffrey View Post
      Yield should be based on current value- so the £11 000 sounds rubbish return on £280 000 value unless the value is going to rise even further.
      Greedy people always say, "Please, sir, can I have some more?"
      No, Greedy people demand some more, the very poor only say "Please"

      Comment


        #4
        An estate agent I know was on the programme about a 18 months ago.

        He did his bit of walking about the house looking at the walls, then gave his valuation.

        Again, a pity the programme makers didn't go back again afterwards, the house was still on the market 9 months later.

        Do you think that these sort of TV shows give a false impression to people who think that it is 'Easy Money'?

        Comment


          #5
          Yes. Property Porn is no different from the other kind, except that it's more acceptable at peak-hour viewing times. "See my house prices rise, big boy. Try my discreet capital-enlargement techniques for the Adult Investor."
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            It is shows like thios which have encouraged every man and his dog to become a property developer particularly as rarely do we see an example of anybody loosing money!
            I have attended a fair few auctions in my time and never bought because auction fever always seems to cause the hammer price to fall at an unrealistic level for somebody who wants to do the place up and make a profit, yet the programme always manages to spot likely candidates, though I suspect that they film the auction first, find a suitable purchaser and then do the other bits of filming afterwards.

            So now we know that the real situation is not as rosy as the programmers portray, however this programme and its ilk have probably distorted BTL market prices a little further upwards than maybe they should have risen so an adjustment may well happen in the fullness of time.

            P.P.
            Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

            Comment


              #7
              My gripe with these programmes is that they always seem to show a low price paid out to tradesmen. When my husband (carpenter) prices up a job, he hears "How much to hang a door? But on such and such a programme, the whole house was 2nd fixed for that price!"

              Comment

              Latest Activity

              Collapse

              Working...
              X