3rd September 2016
We have been making offers on various properties on the whole at around 20-25 % below market value, this is a lot considering in these locations it is rare to get even 10%, that is if you manage to source a property in such locations in the first place.
There exists a window of opportunity to pick up properties in prime locations. Rest assured this will not last for a long time.
There have been a couple of occasions where we have overplayed our hand a little, there was a block which I was convinced no one would purchase apart from me. It had been knocking around for a while, and there was currently a fresh buyer on it. I assumed that although they had pulled the contract they would take their time, I stood corrected, the deal was exchanged at £2.7m.
This is a ripe market for picking up stock. There are some who still sit on the fence even in these market conditions. They claim it’s going to get worse and therefore there will be better deals down the road. The bottom line is no one knows for sure. Secondly each property is unique, it will likely not be up for grabs later down the line. There are two benefits for a buyer in this market, the first is the discount and the second is the ability to be choosy about what you purchase. It’s not enough just to get a discount on a property it also needs to have a good feel about it, this comes from the features it has and the direction its facing, as well as the layout.
This is the case with a property we have just agreed in Queensway. Not only is it very cheap at £880 per sq. ft., it’s in the best part of the block, south facing, well laid out, high ceiling and on the first floor of the block. This is an area which is destined to rise strongly in price in years to come, according to Knight Frank’s report. There are many factors which will ensure this area will rise in price, this is compounded by the very little new supply of properties which are due to come on the market. The report analysed how many new properties were due to come on the market according to the plantain permission received and how many where actually being built. In short there will be a massive under supply in an area which is rising fast.
The contract is in and the deal is awaiting an investor. Call us now to buy!