Notice of Closure

Good Monday Morning Folks

I was in a French village with my family a few years ago at New Year, which is celebrated more on the Continent than Christmas here in the UK. So we wrapped up and gathered the fireworks to play our part in what would undoubtedly be pyrotechnic extravaganza as the village clock struck midnight.

The anticipation and mulled wine heightened our sense of expectation …. The bells chimed …. The matches were struck …. a … n … d …. NOTHING!! The village was as quiet asa grave, save only for our modest phut – phut – woosh offering. With the emphasis on ’phut’.

That was then, this is now. And another New Year approaches as did my intrigue when, in my blog-but-one ago, I asked for your reaction to this site’s imminent closure on 31st December when 2009 becomes 2010. Should I shut the doors or adjust my 2009 product offering for the New Year? My expectations may not have been quite as high as for the New Year celebrations in France (no mulled wine for starters) and that was just as well because the people have spoken…or rather, they haven’t. The village was as quiet asa grave. The message is received and understood, folks, so the shutters will come down at the end of December. The shop will shut. Apparently it will not be missed as the village becomes a dormitory once again.

(Incidentally, thank you to my band of regulars who did respond. I particularly appreciated the comments from those of you who kindly praised the consistently high quality of my writing. We’ll all keep in touch).

Meanwhile, I have a weekly blog to write…

The Story of the Flat in Mitcham - Episode Three

I trust you recall the first two instalments. I spotted this two bed repo in an auction in March with a guide price of £90K. But it was pulled the day before the auction. Drat – this one stacked up!

I already had a quote of £6,700 from a builder to upgrade it to a respectable, rentable status. And researched local RICS valuations indicating the upgraded value to be £135K to £140K at that time. So the numbers suggested that it could stack up with a good top-end valuation for a remortgage after six months ownership that would have come up during this autumn. Meanwhile the rental value was over £700 a month so it would yield at least £250 pcm.

That was back in the spring since when it’s been boarded up, unsold. Then I spotted it back on the market three weeks ago with an asking price of £135K with no work or improvements since March. At that price it doesn’t stack up for a BTL investor but could just be interesting to a home-buyer. I had in mind that if it wasn’t sold by early December I might offer £110K with the promise of a fast transaction by Christmas.

That’s no longer an option because of this….

2 bedroom maisonette for sale, Mitcham

£135,000

PUBLIC NOTICE
We are acting for the mortgagees and have received an offer of £126,500 on the above property.
Any interested parties must submit any higher offers in writing to the selling agent before an exchange of contracts takes place.

So it’s virtually gone, but thereare two lessonsto be learned - the first being to keep a very close eye on activities in very small areas. Knowthose target areas and all activities relating to property within your price bracket.

Regarding this specific property, we now have the crucial purchase cost so let’s consider this deal fora purchaserusing my system. The approximate numbers for a BTL investor buying this flat are:

Numbers for a Home-Buyer:

Not a bad investment for your own two bed flat in Greater London – evenproviding the option to rent the second bedroom to help pay the mortgage. Okay, this one is off the market, but there are more when you know how and where to spot them…so get spotting. And if you don’t know where to start, it’s time you revisited my training modules while the shop’s still open.

Have a goodweek y’all.

John