I’m sometimes asked by Landlords & Investors why I always quote the asking price on the properties featured on this blog rather than basing the returns on the Market Value for the property
There’s a couple of reasons for this
Firstly, I’m basing my recommendations purely on the estate agents blurb and marketing photos, never having visited the properties in 99% of cases (if I have some knowledge of the block/street e.g. we have managed property there then I’ll generally say so and inevitably will be able to supply more detail)
Secondly, to do detailed research into each property prior to each blog post will simply be too time consuming – that said if anyone is genuinely interested and email me to discuss I will happily put some time aside to do more in-depth analysis (I just couldn’t do so for every property)
The price will be determined by interest in the property and the general state of the market, something I have no control over
Finally, I have no idea whether you are a Super Hard Nosed Negotiator able to secure a cracking double digit discount or alternatively you may be a wallflower who doesn’t want to make a fuss by haggling!
When I’m looking at a property to see if it stacks up, I’m generally looking for a Gross Yield that significantly beats whatever interest rates are around at that point, so if it works based on a conservative rental figure and the asking price, you should expect a better return based on the fair assumption that you’d be able to chip away at the price a little and of course that doesn’t include capital appreciation.
I hope that helps! If you are genuinely interested in a property do get in touch by emailing nick.horan@belvoirlettings.com and I’ll gladly talk you though it in more detail and give my thoughts.
