I have received details of two more houses that I think may suitable for the APD.
I am off to see one of them at the weekend and I have been tipped of that another will be on the market very soon. One is close to the current project and the other is much closer to home. With the current project beginning to reach a conclusion (apart from selling it!) the timing is good.
Mrs APD is rather less convinced and thinks we should do our own house next. She is probably right but ........
8 comments:
Might it not be an idea to sell the first one first before taking on another £200,000 worth of risk? House sales are at a 30 year low, and I know of one house where the desperate sellers (who are getting divorced and hate each other) have cut the price by one third from the price quoted by two estate agents and have still not sold it. £950k down to £625k, and it is still on the market.
Fortune favours the brave.
I hope Mrs APD doesn't read your comment!
Without putting to fine a point on it, I don't think Tim is suggesting that your proposal is brave........
To quote Oscar Levant
"There is a fine line between genius and insanity."
Indeed, “There is a fine line between Genius and Insanity” and possibly a fine line between comeback and non sequiter….
The key point from Tim’s post above is the fact that the higher figure is from “the price quoted by two agents”. Assuming that those agents’ quotes are recent, this is much more meaningful than, “the price last year” or, “the market value”.
Possibly a nuance, but you should be aware that your exposure should really be seen as the finished value of the house as opposed to the purchase price of the house for modernisation. This is because any fluctuation in the value of the finished product (up or down) will directly impact on the value of the house for modernisation as a £k figure not a %.
Not to say that you shouldn’t be buying another one, the skill is mostly in the buying – have you updated your figures on this project? Perhaps you could offset the risk of a new project by looking at spreadbetting rates for the housing market as a whole?
Good luck – keep us posted
PS Like many estate agent valuations, I seem to have missed an o from the 3rd word of my earlier post… sorry
"Fortune favours the brave"
"Pride comes before a fall"
You can find a cliche to justify any action: it doesn't make it sensible.
Buying two properties, particularly if they appeal to the same market segment, in the same area, is a lot of risk.
Remember that the last recession (early 90s) lasted 13 quarters. We have just had our first quarter of falling growth. So unless you think that this recession will be more shortlived than that one, we will come out of recession in spring 2012. Nor was that a long recession - the recession in the early 1980s was 17 quarters. Spring 2013 here we come!
I vaguely remember in the “Fall and Rise of Reginald Perrin” CJ said something like .
“I hate clichés. Clichés to me are like a red rag to a bull. However, necessity is the mother of invention and on this occasion there is one cliché that fits the situation like a glove”.
I am sure I haven’t got the quote right but I didn’t get where I am today by trying to remember quotes from 1970’s sitcoms!
The fact that you can remember 70s sitcoms does show your age, however :-)
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