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More than 50% of people think they paid too much for their property in the last year


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According to new research by Aviva, more than 50% of people who bought a property in the last year say they regret how much they paid; https://metro.co.uk/2021/07/14/half-of-people-who-bought-a-home-in-lockdown-regret-the-price-they-paid-14925754/

The research comes off the back of a tough year for potential house-buyers. Faced with unprecedented demand and a seeming reduction in supply, thousands were forced to act quicker than they'd have liked if they wanted to secure a property.

Other interesting stats from the survey showed that around 92% of pandemic buyers noticed problems in their homes after they bought them. It stands to reason that many of these people blame it on the speed in which they had to respond to available properties.

I think this is an interesting snapshot of something very unique (a pandemic market) and something cyclical (a competitive market). 

I'm also not especially surprised at any of these results. I've heard countless anecdotes from friends who bought in the last year and it didn't sound like an enviable position to be in. 

What do you make of this research?

Mark Rocks
Community Builder and Content Writer

www.propertyhub.net

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Morning,

On the flip side to this, the Pandemic has meant that student let’s haven’t been rented out, as many courses have been carried out on line for the past year. This has presented good purchasing opportunities for investment properties. We have purchased 3 in the last 18months and are really pleased with the price we have paid. I suppose there is always a silver lining if you look hard enough.

 

Darren

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That's really interesting to hear!  I purchased a property which I completed on in April this year (2021) and certainly don't have any regrets (at least not yet anyway).  It was in the best condition I have ever found a house in after purchase, the previous owners did a full deep-clean.  I was able to find a tenant within a week who has been great!  But it sounds like I am in the minority here.

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I completed on a property in January of this year, having done the initial viewing and putting my offer in around the end of November last year. It didn’t feel like a great deal but at the same time didn’t feel like a poor deal either as I know I didn’t over pay. This in my mind in the market that we’re in felt like a small win in a strange kind of way. The property in question needed a light refurb, couple of thousand spent on it. Maybe made it less appealing to others as it did involve some time commitment for not an awful lot of financial gain.

Overall I feel in the short term, if I were for some reason to sell it on in the next year, yes it probably was a poor deal. But I have no plan to do that. By holding long term I think in the future I’ll look back on it as a good investment. It has so far proven to be in high demand and yields very well so no regrets from me to this point. 

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I completed on my first BTL in November last year. I got the property at a small discount and there was no competition for it. It was in good condition so no refurbishment required. I had a tenant/family friend move in on the same day. 

I have completed on my 2nd BTL today. Which I am pleased about. I have been stuck in a lengthy chain and it didn't seem like I was even going to complete. I had my offer accepted at the start of February. There was a lot of competition for this property, one couple even offered a couple of thousand over asking. As it turned out I know the vendors son. They ended up accepting my offer which was asking price. A similar property has just selt around the corner from this one for £10,000 more. The property needs a lick of paint and new carpets and I have a tenant moving in next week.

I have also moved into a rental turning my house I used to live in into a btl. Which should be ready to rent out in a couple of weeks after I give it a lick of paint and get rid of all the stuff I have left behind.

I have a viewing next week and this potential could be my 4th BTL. Fingers crossed.I have know regrets so far. I feel I have getting two good deals. 

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We’ve bought 3 BTL as well as moving house ourselves during the pandemic so far and have been really pleased with all of them.  As mentioned above, all were left in the best condition out of any we’ve got so far in terms of cleanliness which has not by any means been the norm with other properties we’ve bought.

Most of these were bought at or only very slightly under asking, and I suspect that this is why the people surveyed are likely to feel they’ve overpaid.  But the counter to that is that there is no way we’d afford the house we moved into now as the market has since rocketed on further.

And as for not noticing issues you hadn’t during viewing, I would say this is fairly normal.  As long as you know what to look for and you’ve had surveys done the major issues should be avoided.  The article says on average “just 46 minutes to view a property”?!  I don’t think I’ve ever viewed a property for more than 15 minutes, pandemic or otherwise!

All in all I would say it’s the red hot market, rather than the pandemic that has presented buying challenges at the moment.  It is still possible to get solid purchases though for sure

 

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