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Where Taxpayers and Advisers Meet

Properties sale prices - what's the state of the market?

Bizman
Posts:36
Joined:Sat Oct 21, 2017 9:18 pm
Properties sale prices - what's the state of the market?

Postby Bizman » Sat Jul 21, 2018 10:48 pm

I have had enough of problems with, on one hand tenants who endlessly mess me about, and, on the other, the government's never-ending attacks on the BTL and property sector. Therefore, I'm trying to sell our BTL properties.

They all based in outer London and Hertfordshire and range in price from £400k to £3m.

Obviously the following determinations are somewhat subjective, but we were trying to sell them for c. 5% over what one could deem to be their current actual price, but didn't have any success over a period of six months. We have since reduced their prices signficantly, by around 10%, so they are 5% below what one could consider to be their "actual" price.

However, there is still little interest and the only offers we get are 15% below my current prices.

The agents and buyers are all telling me the BTL sector is in a freefall because of Brexit and the countless government changes. They tell me there are many BTL landlords who are willing to sell their properties at significantly below market price and I need to do the same to. I keep trying to persuade them that, while the market in the south-east is undoubtedly going down, all kinds of independent metrics don't backup their assertions of it being in a freefall, but they strongly disagree with me.

I'd be curious to know what's your experiences and thoughts in terms of BTL property prices in the south-east of England?

Cheers.

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: Properties sale prices - what's the state of the market?

Postby someone » Sun Jul 22, 2018 8:18 am

Even for the 400k one, the 5% is just stamp duty for a BTL. Any purchasers are likely to be higher rate tax payers so the mortgage tax relief is going to hurt.

You've decided to get out because you don't think it's worth it. Why do you think others want to get in to exactly your position? They need a sweetener.

Honestly, if you want out, I think you're foolish not to take the offers you're getting which aren't so far below 'market' as to be laughable.


And, to get back to tax, you taking a 20% price reduction is really only around 14% once CGT is considered.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Properties sale prices - what's the state of the market?

Postby pawncob » Mon Jul 23, 2018 4:54 pm

Your properties and 15% over market value.
The old adage is right. You can't beat the market.
With a pinch of salt take what I say, but don't exceed your RDA

Bizman
Posts:36
Joined:Sat Oct 21, 2017 9:18 pm

Re: Properties sale prices - what's the state of the market?

Postby Bizman » Mon Aug 20, 2018 1:00 pm

Thank you very much for the feedback. It's useful to get other people's opinions.

I've consistently achieved sale prices in the past that so-called experts thought was simply not possible. But the current market is very difficult due to the raft of government tax hikes and red-tape introduced on the BTL sector combined with fears over Brexit etc. Hence having reduced the asking prices by tens of thousands of pounds.

Any other insights into the state of the market would be most appreciated.


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