Excellent Auction Result - a 16.5% return!

During 2017 I have highlighted on this blog many properties I consider to be good buy-to-let investments for landlords looking to grow their portfolio, as well as development projects. 

Well its about time we started demonstrating some of the results!

And its prompted by the sale (at last!) of Flat 5, 104 Southwood Road, SE9 which has been in various auctions this year. 

We recommended it as a potential purchase, for a good rental return, back in June of this year (link here ... http://dansonps.blogspot.co.uk/2017/06/welling-investment-property-of-week.html)

At the time the Guide Price was in the region of £90,000, with a tenant in situ paying £840pcm rent, offering a return of as much as 9%. A very good return, albeit for a small property. 

It appears that no-one appreciated the good deal in June and it remained unsold at auction, which I imagine was disappointing news for the owner. 

BUT ....

Better news for the new buyer! It was re-listed at auction in September and sold at £61,000. Not a great result of the seller, and I've no idea what prompted such a cheap sale, but what an outstanding buy-to-let return for the new owner. £61,000 outlay, with a return of £840pcm rent, is a rental yield of  16.5% !!!!! Unheard of in my career other than for high-rise unmortageable concrete tower blocks on horrible estates. 

Be sure to follow our blog, because if you have money to invest in property, we'll point you in the right direction. 

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

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How is the property market in Welling? - September 2017

It never ceases to amaze me how the housing market can fluctuate up and down over time without any real explanation as to why to your average Welling resident, or even estate agent like me. 

Earlier this year, prior to the announcement of the General Election, our most popular type of property for sale was a three bedroom semi-detached house in the centre of Welling. Ideal for any family you'd think. We had a variety of modern and dated, large and small, with most near the station, ranging from £400,000 to £440,000. 

Without exception, every one of these houses, about six in total, when marketed led to numerous phone calls same day, an Open House that coming weekend, and in the majority of cases offers followed almost immediately. Four of the six sold at asking price, one at over asking price, and one fell through, only to be re-marketed and sold for a higher amount within days. 

So what's changed? Good question!

There is often a summer lull with people going on holiday, the kids are off school, wedding season, and just people wanting to enjoy the weather and relax rather than look at houses. Thankfully, with September arriving, a traditionally busy month as routine goes back to normal, and people look to buy in order to move prior to Christmas, you'd hope that is all behind us. 

So I thought I would do some quick research in to the current state of the market and what is available to purchase in Welling, DA16. 

There are currently 303 properties in DA16 on Rightmove, with 177 sold and 126 available. This is freehold houses only, ranging from 300k to 650k. That means 58% of houses are under offer. 

Bearing in mind most houses don't sell on the first day I thought I would look into the number of houses sold in the first 14 days of marketing. 

There are currently 53 houses on the market which have been listed in the last 14 days. And how many are under offer according to Rightmove? just two. Yep, TWO! With 51 available. 

This would have been unheard of in the opening quarter of the year. 

The fact is that people are still buying, but there are less of them, and if you want someone to purchase your property and not the one down the street, you best make sure when marketing you are pricing correctly, and presenting the house to the best of your ability. 

With 51 new properties available for a buyer to choose from, and as many as 20 in the core 375k-425k range, you best make your one stand out!

87 of the 303 properties in the DA16 area have been reduced ... 29%! So again, get it right and price and present correctly. 

But don't be concerned.

Finding a buyer is still perfectly achievable, it is just taking longer.

If you are upsizing, the chances are you may get a little less for your home than six months ago, but you'll probably get a discount off of what you are buying. Indeed, one of our clients moving out into Kent has recently negotiated an offer more than 50k below the asking price for a property on the market for over 12months, making the 10-20k potential "loss" on his one relatively speaking nothing to worry over. 

Things are tough at present, but if you are committed to moving you still will, but testing the market without the desire to see it through, is perhaps best left for 2018. 

For any advise of residential property, please do not hesitate to get in touch directly on kevin@dansonpropertyservices.com 

Statistics taken from Rightmove on 5th September 2017 and correct at the time of writing. 

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

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Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

Welling Property Market Update - September 2017

Are you up to date with what is happening in the local property market?

You can find out the latest on our blog, and with our monthly newsletter style update. 

For more please also visit our website https://www.dansonpropertyservices.com/news/welling-property-news-september-2017.html

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation