Just wondering - how long did it take you . . . .

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
e-richard
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Post by e-richard »

gam wrote:... the extraordinary prices demanded..
I wonder if you've tested whether these are "prices demanded" or "prices hoped for".

In today's climate, I imagine that even offers of 75% of the asking price would (should?) not go amiss. It all depends on how desperate the owner is to sell. There cannot be that many buyers around.
** Richard
PIMS: Holiday Rental Management system
They say we learn from our mistakes. That makes me a genius !
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kendalcottages
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Post by kendalcottages »

I was surprised to hear of an offer of £275k for a property in our town priced at £295k was turned down by the vendors not so long ago. Seemed like a fair offer to me in the current climate. I happen to know the owners and not long ago they seemed very eager to move as quickly as possible. Strange that they turned down the offer therefore and, to the best of my knowledge, there's been no interest in the few months since.

Apparently, though, Rochford in Essex and South Lakeland are the only two local authority districts in the UK where house prices are currently higher than they were in 2007, so maybe you can't get that little bit off the asking price quite as easily here.
Kendal Holiday Cottages Ltd., Kendal, Cumbria - between the Lake District & the Yorkshire Dales.
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Nemo
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Post by Nemo »

Early days yet for the perfect place! It may be a question of looking for a long time, I guess a year or more, as turnover (property not business income!) can't be high in the current climate.

You haven't thought of changing tack and finding a nice home for you and then purchasing separate properties off site? I know that's a different sort of business, but I guess that's what a lot of us here are doing!
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Giddy Goat
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Post by Giddy Goat »

We're on the Essex/Herts/Cambs border. Our property value (Zoopla) has been steadily creeping up since then, though there has been no further shift in the last 4 weeks. It is above what we paid for it (and 7% above the asking price at the time. We completed on our purchase in May 2010.)

We were unable to get the price down much in reality since there was a shortage of decent properties, at least in this part of East Anglia, and that hasn't changed.

Nevertheless, it still takes a while for houses to sell hereabouts! :?
Nemo wrote:You haven't thought of changing tack and finding a nice home for you and then purchasing separate properties off site?
In a way I think I'd prefer to do that and have a little bit of distance between me and my guests, although it makes the task of finding the perfect combo more difficult. I'm guessing that Gam would at the very least want to be close enough to oversee the turnarounds if not do them himself, maintain the properties and garden etc.
Last edited by Giddy Goat on Thu Feb 23, 2012 5:32 pm, edited 1 time in total.
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gam
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Post by gam »

e-richard wrote: I wonder if you've tested whether these are "prices demanded" or "prices hoped for".

In today's climate, I imagine that even offers of 75% of the asking price would (should?) not go amiss.
I wish!

The sorts of places I'm looking at tend to be owned by people looking to retire and so want the maximum possible. The one property I was interested in, I asked the agent if they thought the vendor would accept an offer of 10% under the asking price knowing it had been on the market for the best part of a year. I was quickly told "no chance" as they had recently turned down an offer less than 5% under - crazy in today's market but that's the way it is. The property sold 3 months later for, according to the agent, "very close to the asking price".

Talking this through with a couple of agents, they told me that there were a lot of people with my sort of money looking for my sort of property - mostly all waiting hopefully for the asking prices to drop. but some are prepared to jump in with what on paper look silly prices and awful ROIs. The average time from on the market to under offer is 18 months.
Nemo wrote: You haven't thought of changing tack and finding a nice home for you and then purchasing separate properties off site? I know that's a different sort of business, but I guess that's what a lot of us here are doing!
Yes it might come to that. Individual property prices are much more realistic in the West Country.
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Holiday Ray
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Post by Holiday Ray »

gam,
I do think one has to be as flexible as possible and be prepared to
a) Wait until the right property(ies) come up
and
b) Not to give up whilst waiting.

Briefly, our story was that we went over to an area of France that we loved (The Lot et Garonne) after taking several holidays there, looking for the usual 'wreck to rennovate' and as they were all far too expensive for what they were, we (I) started looking for plots of land instead.
On the last day of a '5 day expedition' came across my 'dream plot' and to cut a long story short - bought it and built a house on it !

It was a similar story for us a few years back, in the UK - took me almost a year just to find a plot of land and then built a house on it (No I'm not a builder - had no previous experience prior to that, just seemed like a good idea at the time (it was !)

My point gam is that these things do take time. I don't know you, but you strike me as being the type that doesn't give up easily.
I'm not suggesting for one minute that you start looking to build something, just that sometimes circumstance can take you off on a different journey to the one you intended, so just, as I say, be prepared to consider 'other options'

Patience and determination are two of the main requirements in the property acquisition game.

Incidentally, we had a circular drop through our letterbox this morning from a local estate agent.
I was surprised to read - words to the effect -

"Despite the slight fall in house prices in the last 12 months and the expectation that this may well continue........"

So time is on your side gam and property prices aren't likely to be booming again any time soon !

Stick at it gam and Good Luck :wink:
Ray
aasta
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Post by aasta »

We dreamed of Italy, then of France and ended up in Portugal!!!
It took us about a year to find a property in the area we wanted to be in and which we could afford (barely) and after initial "major" hurtles and lots of work opened after three months...though renovations are ongoing....
aasta
golfing girl
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Post by golfing girl »

Hi Gam
Don't give up, we were in the same position and looked at so many properties I lost count. We constantly found we just couldn't put in a good enough offer to be accepted. Then suddenly we were looking in an estate agents window at a property, I went in to ask for details and while I was waiting I turned around and there was our property....and it had just been reduced. Finally a property we could afford...and the rest is history. How long did this journey take? approx 6 years!!!! So don't give up.
I wish I was on the golf course
gam
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Post by gam »

Thanks everyone for your kind words and encouragement. I really appreciate it.

Plan A will continue through 2012 for sure but it's quite fun working through what other options I have, either as plan B or side by side with my desired outcome.

I've learnt a great deal from members of this forum and would feel much less positive about my choices without the great advice there is here.

One clear message I'm taking on board is not to accept second best. It seems to me that those members who have both a passion for what they are doing and love their properties are the most content, happy and successful. So I'll keep looking for the right one for me.
crosslandv1
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Post by crosslandv1 »

We are just in the process of buying our property in the Pyrenees Orientales. It took us about 18 months and one disappointment when a previous purchase fell through when the vendor changed their mind. I know how long a process it can seem but hang on in there! We did make a slight compromise on the size of property but looking back, perhaps we were just too ambitious at the start! Good luck :P
Corfudeb
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Post by Corfudeb »

We knew we wanted to build on the island of Corfu having holidayed there for the past seven years. We spent a long time searching possible plots of land via the internet. We knew the area we wanted, so that helped. We then arranged viewings and flew to the island for a short five day visit. We viewed seven plots of land and very quickly knew which we wanted. It had the most stunning views of the island and as we walked onto the site, hundreds of tiny butterflies emerged from the wild flowers that grew amongst the olive groves. It was magical. We returned to the estate agents, put in an offer to the owner of the land which was accepted and returned to the UK the next day. Two years later we are the proud owners of a fabulous property which we have designed to make the most of the views and the natural landscape. It is named after the butterflies that make live amongst the flowers. It has been hard work and cost three times the amount we intended, but it is a dream come true.
Hold on to your dreams!
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Giddy Goat
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Post by Giddy Goat »

Corfudeb wrote:but it is a dream come true.
Pheww, you can say that again. It's amazing and congrats on taking the plunge and creating something so beautiful. Hope you have loads of years to enjoy it, and happy renting!
Nostalgia isn't what it used to be
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Jimbo
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Post by Jimbo »

Corfudeb wrote:It had the most stunning views of the island and as we walked onto the site, hundreds of tiny butterflies emerged from the wild flowers that grew amongst the olive groves. It was magical.
Terrific photographs that really convey that magical location.
Jim
pujols
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Post by pujols »

Having come from London and spent the best part of my life working 16 hour days in the fine dining world...I knew that I
needed to make a drastic change.
I loved France...always have and sadly found that I was falling out of love with where I lived.
With no desire to offer my CV to waitrose to try to compete with Delia or, indeed Nigella the only other option would be to stack baked beans in Asda.
After years of searching and, at a moment when the market in uk was at it's peak we sold and exchanged on a property in S.W France.
There have been no end of complications, snags and new things to learn and I tackle each one at a French pace and placate a general acceptance that life is far from perfect...Not here but certainly not back in London.
A couple of days ago it was just like summer 26 degrees.

In life you learn as you go.
Listien to others but most of all listien to yourself because you
know yourself, your capabilities and what you really want to do
with your life.
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