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  • Property-a-holics

    Just got a good deal ! Flip or hold ?

    So thought that I would update everyone on the house now I have hit the 6 month mark . 

    I put the house up for rent and found a good tenant at a rent of £650 pcm which is the highest rent level for a single let in the immediate vicinity.  I thought at the time £600 but after advertising at 650 we had lots of interest.
    So the remortgage is going through and I was asked what I thought it was worth an I gave a figure of £135k  knowing it's value is around £125k  the valuer came out and has down valued it at £115k which is what I expected.  This will mean I will get back £86750 with a 75% remortgage.  My original investment  with refurb was £87k  so ROI  is pretty much infinite .  It will cashflow approximately £300 pcm after costs. 

    I was a bit worried earlier in this when I was told my original purchase at 81k would set the market value but this has not been the case. Next door went on the market at £135k  a couple of days ago .

    So looks like I'll be holding on to this house for at least 5 years. 





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    Congratulations Wonderwebb.

    Its refreshing to read a positive outcome amongst the general doom and gloom.

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    Thanks for the update.

    Good to hear positive stories & well done!
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    Hi Wonderwebb,

    Congrats. Good to hear of a positive outcome in today's market. I too will be going through this in few months time. I'm curious to know what renovation work you did to get that valuation. Also what did you say to the lenders surveyor, did you show them  a schedule of works, before/after pics and local  comparables?

    Thanks
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    Hi Albrahim 


    The renovation was quite light we re painted  new carpets and tidied the garden .  The real  gain was done at the purchase stage. I never actually met surveyors I let the tenants show them around.
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    Really good news and pleasing to hear that as suspected, if you have done your research you can make a good deal.
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    Prehaps a good method is to purposely give the lender a higher value estimate for the property so that they can downvalue this back to a more realistic market value. This should not be the way to do things but surveyors are an odd bunch that are heavily influenced by their customers the lenders! 

    No offence to any surveyors on here.
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