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SPV 39
Jan 29, 2016 20:17:01 GMT
Post by highlandtiger on Jan 29, 2016 20:17:01 GMT
With the net rental yield looking to be 7.2% and the combined projected net return being 23.25% over 3 years, it looks as though they are only expecting the capital growth to be be worth about 1.65% over three years. Considering they are looking to purchase at 4.85% under market value, according to my maths (and it could quite well be wrong), they are expecting house prices to be stagnant at best in Hartlepool. I blame the monkey for that  |
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ben
Posts: 2,020 
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SPV 39
Jan 29, 2016 20:29:30 GMT
Post by ben on Jan 29, 2016 20:29:30 GMT
With the net rental yield looking to be 7.2% and the combined projected net return being 23.25% over 3 years, it looks as though they are only expecting the capital growth to be be worth about 1.65% over three years. Considering they are looking to purchase at 4.85% under market value, according to my maths (and it could quite well be wrong), they are expecting house prices to be stagnant at best in Hartlepool. I blame the monkey for that They say they expect it to raise in value by 3% a year I guess the difference is after taken there fees into account. I will dip my toe into this one I think but prefer the sound of the other one as the rent will be there if rented out of or not
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SPV 39
Jan 29, 2016 20:44:08 GMT
Post by highlandtiger on Jan 29, 2016 20:44:08 GMT
I'll also be putting a few quid in this one as well. I like the rental yield, and the fact that it is a freehold property. Even if the property market starts playing silly buggers, 7% rent is not to be sneezed at. Worth a punt in my opinion.
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ben
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SPV 39
Jan 29, 2016 21:00:16 GMT
Post by ben on Jan 29, 2016 21:00:16 GMT
I'll also be putting a few quid in this one as well. I like the rental yield, and the fact that it is a freehold property. Even if the property market starts playing silly buggers, 7% rent is not to be sneezed at. Worth a punt in my opinion. I was aiming to have invested in 10 when joined am about there now although the two current ones are best for rental yield that I have invested in. Also with it being four flats it would probably not cost much to convert into a large family house if the market did play up a bit. Even if prices go down I doubt that rent will much, plus in that sort of area unless there is a massive crash in house prices the value will not go down too much. I am surprised that the other one has taken so long its guaranteed rent for 3 years and even if houses go down and rent goes down the yield will still probably be about 4/5% in 3 years time which is not bad when you have already got about 22% back
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SPV 39
Jan 29, 2016 22:12:36 GMT
Post by Financial Thing on Jan 29, 2016 22:12:36 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied:
"Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street."
Hope that helps.
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SPV 39
Jan 30, 2016 1:33:01 GMT
Post by highlandtiger on Jan 30, 2016 1:33:01 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied: "Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street." Hope that helps. A RICS survey carried out on the 15th January 2016, values the property at £134,000. It seems that the chartered surveyor PM used would disagree with your mate.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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SPV 39
Jan 30, 2016 8:55:48 GMT
Post by j on Jan 30, 2016 8:55:48 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied: "Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street." Hope that helps. A RICS survey carried out on the 15th January 2016, values the property at £134,000. It seems that the chartered surveyor PM used would disagree with your mate. Regardles of what 2, 3 or more CSs may value this property at, the numbers (for me) don't entice me to go in on this one & I've been an investor in almost every single PM property offered since I joined them a few months ago. I think the other current property, albeit, more expensive, has better numbers with underwritten rent & in a better area but each are entitled to form their own opinion & invest accrdingly. (IMHO)
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webwiz
Posts: 1,133
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SPV 39
Jan 30, 2016 10:12:16 GMT
ben likes this
Post by webwiz on Jan 30, 2016 10:12:16 GMT
I wish PM would publish the full valuation report on their site (if it's there I can't find it). I would also be interested to see the floor plans as this does seem to be a "Tardis" building.
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ben
Posts: 2,020
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SPV 39
Jan 30, 2016 11:12:41 GMT
Post by ben on Jan 30, 2016 11:12:41 GMT
I do not think this is one of the best ones they have offered but especially now with the lower limits I am willing to put some in. A lot of the properties on PM when you see the outside of them look tiny.
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Steerpike
Member of DD Central
Posts: 1,977
Likes: 1,687
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SPV 39
Jan 30, 2016 11:43:57 GMT
Post by Steerpike on Jan 30, 2016 11:43:57 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied: "Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street." Hope that helps. It states on the PM website that the flats are self contained each with a bathroom, 3 are one bed plus lounge/kitchen/diner and the other is a bedsit. Bedsit + one on ground floor, one on first floor, one on second floor. This property looks somewhat comparable at £140k
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webwiz
Posts: 1,133
Likes: 210
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SPV 39
Jan 30, 2016 12:50:37 GMT
Post by webwiz on Jan 30, 2016 12:50:37 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied: "Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street." Hope that helps. As an investment property it would be normal to value it on the basis of capitalising the rent which would give a much higher valuation depending on the yield figure chosen. Your friends £90K figure implies a yield of over 15% which is IMO ridiculous.
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SPV 39
Jan 30, 2016 13:32:26 GMT
Post by Financial Thing on Jan 30, 2016 13:32:26 GMT
In the nature of information sharing, as I like for people to do the same for me if possible, my oldest friend is a very experienced Chartered Surveyor. I sent him SPV39 info and he replied: "Wow, how do they manage to get four units out of one terrace house! Hartlepool is a dog of an area. It looks as though it’s just a HMO with shared facilities, even an HMO would only have an investment value of £90k. I’ve just had a look at this comparables. One is a single flat, two is by the sea and the third is a new purpose build development of modern flats. No way is it comparable to a crappy terrace! Bottom line is that you can buy terraced houses for £40k on that street." Hope that helps. A RICS survey carried out on the 15th January 2016, values the property at £134,000. It seems that the chartered surveyor PM used would disagree with your mate. My friend read the valuation, and is saying the comparables are not at all comparable, therefore the valuation is inflated: "One is a single flat, two is by the sea and the third is a new purpose build development of modern flats"
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Post by Financial Thing on Jan 30, 2016 13:40:49 GMT
I'd trust my friends valuation over a PM valuation, which is designed to make the property look as attractive as possible to garner investment. My friend is very experienced in the Northern market, owns his own firm with many employees and has been in the business 20+years.
I just post the information for help to others, you can do what you want with it and it makes no difference to me whether you invest your money or it.
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SPV 39
Jan 30, 2016 14:15:43 GMT
via mobile
Post by highlandtiger on Jan 30, 2016 14:15:43 GMT
I'd trust my friends valuation over a PM valuation, which is designed to make the property look as attractive as possible to garner investment. My friend is very experienced in the Northern market, owns his own firm with many employees and has been in the business 20+years. I just post the information for help to others, you can do what you want with it and it makes no difference to me whether you invest your money or it. I would have thought it would be in PM'S interest not to over pay on any property. As it reduces both the capital and rental yield and makes it less attractive to investors. Whilst I don't disbelieve your friend with his valuation, it does put into focus how objective valuations can be.
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ben
Posts: 2,020
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SPV 39
Jan 30, 2016 14:43:15 GMT
Post by ben on Jan 30, 2016 14:43:15 GMT
I'd trust my friends valuation over a PM valuation, which is designed to make the property look as attractive as possible to garner investment. My friend is very experienced in the Northern market, owns his own firm with many employees and has been in the business 20+years. I just post the information for help to others, you can do what you want with it and it makes no difference to me whether you invest your money or it. I would have thought it would be in PM'S interest not to over pay on any property. As it reduces both the capital and rental yield and makes it less attractive to investors. Whilst I don't disbelieve your friend with his valuation, it does put into focus how objective valuations can be. It be in there interest not to as well as if the property sells at a profit at the end they get a rather large slice of any gains. Think I read somewhere 15% of any gain on capital but will need to double check on that though at some point
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