It’s not often that two flats of the same good yielding
nature catch my eye at once. Truth be told my radar hasn’t been picking up many
good buys recently as you may have noticed as less blog alerts come through on
your email.
Time to revisit older instructions. As a seasoned buyer you
will know that generally Joe Public will want to “test the market” at a higher
price to “see what happens.” I can tell you straight away with my dozen years
of experience that this seldom results in the desired effect. Generally the
property becomes old and stale and remains unsold as buyers look elsewhere for
value. Buyers do it in the supermarket when comparing baked beans, they do it for
cars, well surely they do it for property too! Message to Joe Public: If your
property is overpriced it won’t sell.
But that’s good news for us investors. The time is right to
get in there with an offer they can’t refuse…
Property 1: 3 bedroom flat in Tulse Hill SW2. Priced at
£299,950 and available on RightMove since early April. This means that all the
buyers on Dexters register will have been called to death and been around to
see it if they so desire. Still unsold, which means that they are waiting by
the phone for you to come and see it and make them happy with an offer they can
bring to the vendor with the words “well this is the best price we can achieve.”
It’s a good flat, a little bit out from the station but as
previously mentioned on the blog I predict this area will see the biggest %
gain in prices vs something closer to the station. Rents probably around the
380-400pw mark. That’s a 6.6% yield at asking price using 380pw! You may need
to spend a penny or two redecorating, but in general it’s good to go.
Property 2:
Same as number 1. Can’t really say much about internals as
this amazing agent hasn’t bothered to go inside with a camera, but all the same
it’s worth a look as I’m sure you’ll be viewing property 1 anyway, and this is
in the same block.
Figures as above, count on 6%+yield. Interestingly though,
the description reads “offers over £275,000” which is vendor speak for “275 is
the lowest I’ll go.” And if it’s been on since November last year I think they
will be agreeing with the agent when an offer under that comes in and the agent
tells them “you should take this offer, it’s the best you’re going to get and
we’ve been at it for 6 months!”
Just for comparison have a look at this page, you’ll see a
similar one (granted in better condition) completed in February of this year
for 285k.
So would you pay 285 for property 1 or 2 above? Sounds like
it makes good investment sense!
Just to throw this at you as food for thought here’s one which
is ludicrously overpriced with one of those “do it yourself” type outfits, so
clearly someone who’s plucked a value out of thin air, price at £362,500. Is it
really 62,500 better than the other flats? No, I didn’t think so either:
Property 1 and 2 above deserve a closer look with your keen
investor eye for sure!
Give me a call to talk property or weather – I’m on 020 3397
2099. Or email me via tinterwebnet on jeroen@xandermatthew.com.
If you are looking to investment feel free to pick my brain to make sure you
money goes as far as it can do.
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