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matt1986

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  1. Thanks for your thoughts guys. Thought I’d follow this up as to what has happened. After querying the agent, they confirmed what I had suspected, which is the conversion is not building regs compliant as ‘the conversion was done pre building regulations approval’. Also I’ve been told the previous sale fell through due to high damp readings in the kitchen. I’m on the fence with this one now, part of me is still interested, even as a two bedroom, it’s still financially sound, and with a previous sale having fallen through and the aforementioned concerns, the possibility is there of securing the property at a discount, with the added lure that it could perhaps be made to be a legitimate three bedroom in the future. I’m clearly out of the loop on building regs though, I really thought that any habitable room had to comply with universal regulations, I still find it odd how the room can be compliant as a family room, but not as a bedroom. Still, food for thought and things to consider.
  2. Perhaps, but are there regulations which differentiate between minimum sizes for a bedroom or any other habitable room? I’ve been in similar sized terraced houses, with very similar roof pitches that have had loft conversions, they seem to be legitimate rooms.
  3. Hi guys, we’ve recently viewed a property that we might be interested in adding to our portfolio. It’s a recent flip that’s been renovated to an okay standard for the type of property and area. It’s advertised as a two bedroom, but with a loft conversion (converted when, I’m not sure at the moment, only had an initial viewing) Oddly, the advertisement is describing the loft conversion as a study/family room, which I find bizarre, as if I were the vendor, and the conversion was building regs compliant, I’d be advertising it as a 3 bed all day long. The room is of an adequate size, and although the ceiling height at the edges is a little low, it’s nothing I’ve not seen before in other loft conversions. When I quizzed the viewing agent about this, they said it could be a 3 bed, they just didn’t advertise it as such. At first I began to wonder if the conversion didn’t comply with building regs, however the room is advertised as a habitable room, and maybe I’m mistaken but if it didn’t meet regs it couldn’t be advertised as any habitable room? Add to this that the property recently returned to the market after a previous sale fell through, details of this I’m yet to find out about. Maybe a coincidence, maybe something more? The agents will undoubtedly call me tomorrow to gauge my interest, and I’ll ask some more questions, but I’ve never come across this before. The house is a significantly better investment as a 3 bed, and I would potentially be interested as such, but the cynic I am smells a rat. Anybody else come across this before, or willing to offer me their thoughts? Am I reading too much into it, or right to raise an eyebrow? The link is below: https://www.zoopla.co.uk/for-sale/details/60588595/?search_identifier=b8f2605b345f781e66d185075378c8f5
  4. Thankyou, I appreciate your thoughts. Would you be concerned from a tenanting point of view? My wife seems to think I should leave them with a tin of the emulsion we used and explain the situation, and that after 12-18 months we will address any imperfections when they’re likely to no longer keep appearing.
  5. Hi hubbers. I’ve recently had a property replastered throughout by a friend in the trade, and then painted by a professional painter tradesman. The quality of the finish in both cases was very good, and I was happy with both jobs. Whilst working on some ongoing work in the garden over the past few weeks I’ve been noticing numerous very small hairline cracks forming randomly over the walls and ceilings, in areas where the walls have been over skimmed, and on fresh sections where walls and new ceilings have been boarded alike. Some of these cracks spider web out of others, but in all instances are no thicker than a human hair. When tapping the wall their is a difference in sound where these cracks are, which I thought meant the plaster had blown. I called my plasterer back to look, and he said these cracks are normal, and expected, calling it settlement. He said the change in tone when knocked didn’t mean it had ‘blown’ in the traditional sense, and the plaster was still secure to the walls. He then invited me to hammer off a small section that he would replaster for free to ease my fears the plaster would fall off the walls when it was tenanted, which to his credit did not come away easily as if it had blown. My issue is, I have 8 rooms fully plastered and painted, and even using suitable filler and painting, these fine cracks return, often in the same places. I’m concerned that tenants will be put off by this, the house is a complete refurb having had a lot of money spent on it, and I was aiming for a good rental on it to accordingly. My wife thinks I might be overly concerned, as you have to be inspecting the walls up close to notice any of these faults, they don’t draw your attention as you walk in a room, such is their very fine nature. She also suspects the white colour draws attention to them where a darker colour would not, but we are already all decorated up now, with a kitchen and other fitments picked to suit this design. I’m really at a crossroad as to what to do, and am even considering flipping the property on. I’ve invested heavily in this place to provide a good home for tenants willing to pay a premium for it, but also to minimise concerns on the immediate future. Am I right to be concerned? Am I over reacting, and being over critical? I’m very much a perfectionist by nature, I would not be happy as a tenant, paying top dollar I would expect exceptional standards to the finish of the property that I pay for, I find that once I see them I cannot unsee them, but I accept not everyone is like me. What are your thoughts on this guys?
  6. What I’ve learnt in this game in a relatively short period of time, is aslong as the property market is buoyant, you have two choices when it comes to purchasing on the open market. 1, If the property represents a good investment opportunity going forward, and fits your strategy, just buy it. 2, Be prepared to do lots of legwork, look at lots of properties, and have lots of BMV offers knocked back in the pursuit of that one property that has a vendor/vendors with that illusive ‘motivation’. I recently started a thread about how much worth being a cash buyer brings to a deal, might be worth a read. The general consensus, and what aligns with what I’ve been finding recently, is not an awful lot. Maybe that will change if the market isn’t so active, but when talking about motivated sellers, in conclusion I’d say I’ve learnt people are almost exclusively motivated by money (when the difference between offers isn’t a matter of just a few quid), and in a healthy sellers market vendors will know they will get what they want, within reason, sooner rather than later.
  7. My last property, also a 2 bed semi, had a full rewire with new consumer unit, re-plastered walls, and ceilings throughout, and a new high spec kitchen with fitted appliances, came in at £25k all told including solid flooring, new door linings and doors, skirting boards etc, and waste removal. Of that, £3,280 was apportioned to rewiring! Starting to wonder if I've been mugged or not! The new valuation does cover the expense, and yields a net profit though.
  8. Yes, but take it with a pinch of salt either way. Due to problems further up the chain we overshot our completion date on our own house by over a month! If it’s a complicated chain it only takes a niggle for everyone to have to work around a new date, I can’t imagine that’s made any easier by the pandemic either.
  9. Leaseholds really aren’t my bag personally, doesn’t necessarily mean they won’t be in the future ofcourse. Trying to keep my focus on regular single let houses in this early stage for simplicity sake, and it’s the bulk of property in the area I’m investing. Definitely interested in unmortgageable houses though. I thought property two would have been a stretch to get a mortgage on in its current condition.
  10. Thanks. Yes, auctions are on my radar going forward, been doing quite a bit of research on how they work, and the things to look out for. I hope to visit an auction house post pandemic, and get a feel for the place before going in with bidding in mind.
  11. Seems I'm not alone then, would have thought simply buying chain free would be worth something in its own right also though, but again, maybe a sign of how buoyant the market is. Would anyone care to critique my approach to submitting offers though? As an investor, I'm obviously looking to buy below market value to some extent, and I hear of people sometimes submitting offers of 25-30% below the marketed price, I've never started anything like that low, often somewhere between 10-20% as a start depending on my enthusiasm to get the deal, however I've been getting a very cold vibe off agents when doing this, almost as a shock that I'm not offering the full asking price or close to it. I'm being fully transparent when I'm enquiring, explaining that I'm investing, and ultimately looking for a deal that works financially. They're most accommodating when trying to sell the property, yet seem borderline insulted and/or annoyed when an offer comes in that allows for a discount on the market value! Whilst I appreciate that's the name of the game, and they're working for the seller not the buyer, I don't want to be burning bridges with these agents, or having them see me as 'that guy again'.
  12. I’ve put in a couple of offers recently on properties where I’ve proven to the EAs that I’ve got sufficient funds and measures in place to buy for cash and complete quickly. Property one: 2 Bed mid terraced house in need of some work, but mortgageable. Currently vacant, probate property. Advertised price £105k, likely value when works completed circa £120k. My first offer of £85k dismissed, and subsequently 87, 90, and final of 91.5k. Feedback was that the vendors holding out for £100k. Walked away from the deal. Didn’t excite me now. Property two: 3 bed semi detatched house, in need of full renovation throughout. Bad electrics, full rewire required, polystyrene ceiling tiles, some questionable floor joists downstairs, obvious damp concerns, and barely useable kitchen. Another probate vacant property but in a very good area with strong growth. Advertised price £170k, likely end value circa £210k but requires a lot of investment this one. For perspective an identical layout house in fair - good condition on the same street was sold STC within 5 days recently for 200k, I knocked the door and found out that agreed price was the full asking price and things appear to be progressing quickly. I was keen for this one, so put in what I thought was a strong offer for cash of £155k, which was quite abruptly and rudely dismissed by the agent, who told me basically not to waste anyone’s time with anything less than the full asking price! The vendor in this instance seemingly not caring about where the money came from, and the property was marketed competitively. I told them politely if the vendor changed their mind then they could get back to me but we were obviously on different mindsets regarding value. Property three: Another mid terraced, this time a 3 bed. Looks largely a turn key investment opportunity, tidy, well maintained, with a small family looking to upsize to a little larger house with better parking and closer to preferred schools. Spoke direct with the vendors on this one at viewing, they have a house seen that they like, but waiting to receive an attractive offer on theirs before showing interest. We spoke about the possibility of renting back to them to afford them some leverage in their purchase, they seemed interested. Advertised price £140k. Bang on valuation in my book, and needing only a bit of paint and perhaps new carpets before rental. I knew I wasn’t going to get anything hugely exciting in the way of BMV due to the market and their finances for their next house, but thought a cash offer would provoke some interest in a discount, and for me the property would cash flow nicely and quickly from good rentals on this street. Offer in of £120k, rejected (expected, just giving myself room), usual EA feedback talk of a possible grand or two off taken with a pinch of salt, second offer up to 125 (more realistic I thought), then 127 after a few days, then found out that property sold to another buyer (figures not disclosed), who was part of a chain.... oh well, told them if it fell through to get in touch. So is it just the market boom right now? Am I being unrealistic with my offers expecting too much bellow market value? Have I just not come across a suitably motivated seller yet? Or is it possibly a combination of the above? I’ll happily admit I’m quite new to this, maybe I naively expected being a cash buyer to open the doors (forgive the pun) to better deals, and make a BRR... strategy stretched out more realistic. But right now I feel that showing agents proof of cash in the bank (in as least arrogant way possible) isn’t really much incentive for anyone I’m coming across. Furthermore I feel like I’m p***ing agents off (Property two particularly gave me that impression!) and short of building rapport with them I’m losing credibility and being seen as a time waster. I’m eager to expand my portfolio, but I’m not desperate, so maybe I need to return when it’s not such a seller’s market. Bit of a confidence knock though, I’ll gingerly admit.
  13. Hard to see it going any other way, sadly people will lose their homes going forward which will only increase rental demand. Whilst this may be ‘good’ for property investors, I don’t particularly take any joy from profiting from others misfortune. But then I don’t set the benchmark rental values either.
  14. It would be really useful if you could filter property details in sold house prices for things like property type, and bedrooms.
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