Rantings of a disgruntled London Property Finder

Today we spent the day out of the office at the IOD annual convention, in the Royal Albert hall.  Politicians never confirm until late in the day so Alistair Darling late entry as the first speaker was an interesting start to the day.

Given the audience, the Chancellor’s principle objectives were to defend the need for additional taxation particularly the new 50% tax  and also shouting about all the concessions and help the government is giving to smes.

Justifying the need for additional taxation, our hearts bled to hear Alistair Darling bemoaning the enormous hole in govenment revenue since the beginning of the recession due to amongst other things, the fall in stamp duties collected.Rather an interesting point to make to a hall full of business people, given that during these difficult times we need to make pragmatic decisions every day. For example, whether it is better to have a proportion of a little or all of nothing.

The Chancellor has missed a trick with stamp duty. Reducing the rate of stamp duty payable on properties below 500K would have helped boost transaction numbers which could in turn have boosted the revenues the government gains from property and boosted confidence in the property sector and the economy as a whole.  First-time buyers who we work with, tend to buy properties worth £400,000 and above.  Assuming they don’t spend over half a million, that means stumping up 3% stamp duty or using one of the avoidance schemes.  For the many who don’t have helpful accountants or London Property Finders like me, that means finding an additional £13,500 for a flat purchased for £450,000 - the price of a good 2 bed flat in a great area in London.  Typically we will charge just short of £7,000 for finding the fabulous flat - but then we would have introduced the buyer to property they would never have found on their own and negotiated a great deal which won’t fall through.  What does the Chancellor do?

Temporarily cutting stamp duty by half for property below £500K would make a real impact on the London property market and the Chancellor would gain a little of alot rather than a great deal of very little!This London Property Finder thinks it would have been a welcome if pragmatic course of action

Technorati Tags: First time buyers, London Property Finder, London property market, london property market news, Stamp Duty

Tags: First time buyers, London Property Finder, London property market, london property market news, Stamp Duty

Musings of a London Property Finder

Property sales in London and the South East were at a record low in October according the Royal Institute of Chartered Surveyors (RICS) but confidence has continued to improve and sales expectations are now at the highest level since March 2007. 

Those in a position to buy, particularly seasoned investors know that although the market overall has still got some way to drop, it is possible to pick up some superb bargains at the moment because most people can’t get the credit required to invest further.  Measures implemented by the government mean that the credit tightening experienced currently may change next year and as confidence grows, competition for the plethora of property bargains around at the moment will increase.

The RICS attribute depressing house prices to the increasing number of properties on estate agent’s books relative to the number of buyers in a position to move rather than a high number of distressed sales which characterised pricing in the early 90s.  While there is no need for most people to sell, many won’t do so, which is why this is a good time to buy, because there is no competition and since prices are still falling, an excellent deal, in excess of future price falls can be negotiated.  Buy now if you can is the advice of this London Property Finder

Technorati Tags: Confidence in the housing market, distressed sales, Distressed selling, House Prices, London House Prices, London Property Finder, London property market, london property market news

Tags: Confidence in the housing market, distressed sales, Distressed selling, House Prices, London House Prices, London Property Finder, London property market, london property market news

Musings of a London Property Search Agent

There is no doubt that this is the best time to buy at auction since a brief period during the summer of 2004, when for about 6 weeks, investors looked nervous and auction rooms were half-full.  Auction rooms are not half-full now and they haven’t been since the beginning of the credit crunch in my view, as this is the first time in ages it’s made sense to buy at auction.  But prices aren’t ridiculously low, just low enough to tempt buyers in, which bodes well for the London property market in general.  Prices are roughly 20% below the price they would be in an estate agent’s window - more if there is a great deal of refurbishment to be done, so there is a margin to be made for buy-to-letters, investors and developers as well as owner-occupiers, willing to pay for the necessary work to bring them up to standard.

At Allsops October auction, all but 5 of the 689 lots have guide prices below £500,000.  Some of the goodies include a 2 bed 3rd floor flat in a Peabody building (period housing association accommodation) near Russell Square with a guide of £280K.  It wasn’t long ago that 1 beds in blocks like this would make £280 at auction and £350,000 through an estate agent, once refurbished. 

For noise tolerant country dwellers, there is a good-looking four bedroom detached house sitting in just over a quarter of an acre but it’s 33m from the M4.  But beggars can’t be choosers and you’d be in good company.  The house is situated in a little hamlet, staggering distance from a pub (we seem to recall) and 5 minutes or so from the 18th Century mansion currently on sale for a cool £4.5 million through Allen & Crane Estates.  Admittedly it’s got 18 bedrooms, a listed dovecote and an all weather dressage court plus a number of other cottages and flats, but then it’s at least £4.2 million more.  The house at auction, lot 267a has a guide of £260,000 - £280,000 and boasts a downstairs cloakroom, separate utility room and 3 reception rooms.  For dressage, you’ll have to chat up your neighbour.

Foodie self-builders may be interested in a pretty hideous 60s bungalow being sold by The Highways Agency, striking distance from The Fat Duck, Heston Blumenthall’s gastronomic paradise.  60s bungalows are sometimes riddled with asbestos so a survey would be a smart move, even for the self-builder wishing to start again because getting rid of asbestos can be expensive.  The bungalow has a guide of £210,000 - £230,000 and may also be suitable for extending up and out, subject to planning.

Lot 77, 176 Elsey Road Battersea is an end of terrace 2 bedroom Victorian cottage on the Shaftesbury Estate which needs a great deal of work but presents a fabulous opportunity for enterprising first or second time buyers.  It is priced at £265,000 - £285,000 but expect to pay more.

Lastly, lot 315 is a new-build 2 bedroom detached house in Highbury, in a quiet residential street which has been doing the rounds at the auctions of late and failed to sell.  Allsops have priced it at £225,000 to £250,000 and depending on the finish, you would struggle to build it for that.  Put into context, Foxtons have a one bed flat and 3 bed maisonette on the same road for £299,950 and £625,000 respectively.  The difference is, this property has gone into receivership.  This London Property Finder can find you a good property at a good price

www.allsop.co.uk

www.allen-crane.com

www.foxtons.co.uk

Technorati Tags: bargain property, Battersea bargain property, bray property, Highbury bargain house, london property bargains, London Property Finder, london property market news, property auction, property market news, Property News, self-build bargain, the london property market

Tags: bargain property, Battersea bargain property, bray property, Highbury bargain house, london property bargains, London Property Finder, london property market news, property auction, property market news, Property News, self-build bargain, the london property market