Legislation is destroying our business and we might as well sell up. My question is – How??

Legislation is destroying our business and we might as well sell up. My question is – How??

9:26 AM, 8th November 2022, About A year ago 14

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Hello, No landlord can be immune to the ever increasing attacks, not only on the buy to let business in general, but also very personal attacks that question our morals, our values, even our right to exist.

I decided to sell up after the S24 announcement. The writing was on the wall.

I only had a small portfolio anyway and I am now down to just two. The others sold reasonably well. Not vast capital gain, but hey, they had provided a very respectable income for many years and that had been my goal when starting out in the business 15 years ago.

A few months ago I managed to take possession of a property that had given me sleepless nights for months. “Finally!” I thought. Let’s get this one refurbished and get rid of it.

Well, best laid plans and all that! It went on the market last week, just as the market collapsed.

So now I have a very nice 3 bed semi awaiting a buyer, but buyers, it seems, are not buying.

So, are other landlords in the same boat? (I need to sell this one. I would hate to have to rent it out again). If you have one for sale, have you had viewings in the last couple of weeks?

Have you considered sending it to auction? I have no experience with auctions but I’m thinking I should consider it.

I have approached one ‘quick sale’ type outfit but their view is recent valuations are far too high and investors would probably only pay around 80% of the pre-covid valuation.

I’m not expecting to sell at the current valuation, or to be honest anywhere near it, but I do want to sell!

I’m sure other landlords must be playing this ‘find the buyer’ game, so, are there any options I have missed?

(PS. I can’t even contemplate the additional stress if CGT is increased in the budget later this month!).

Thank you,

Ann


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Comments

Annie Landlord

16:48 PM, 8th November 2022, About A year ago

Reply to the comment left by NewYorkie at 08/11/2022 - 16:28
Yes, but I need to find one:) Where are they? The house has had a full refurb, new kitchen, flooring, boiler etc etc. Its a solid family home on a private (ie not LA) estate, so its an ideal prospect for anyone staying in the btl business.

NewYorkie

17:21 PM, 8th November 2022, About A year ago

Reply to the comment left by Annie Landlord at 08/11/2022 - 16:48
Everything I'm hearing points to established and cash-rich landlords biding their time for the market to drop. If you need to sell now, I think you should identify local agents selling rentals in the area, and be prepared to price it at what you can afford for a quick sale. I did this last year, and ignored the usual chains. They didn't have a fancy showroom, but were plugged in to the rental market. If you are on estate, try asking the estate manager which agent is best at selling rentals.

Lisa Newton

10:10 AM, 12th November 2022, About A year ago

I'm sure someone will want to buy it 'at the right price'... I see an adjustment in what buyers and sellers believe this 'price' to be... Sellers are overly optimistic... but their moment was Summer 2022... now, since Liz and co fumbled the bag... the tide has shifted... its a buyers market, in that a Buyer can only offer so much to make the numbers work.

It's pointless getting into debt on numbers that just don't stack up. Whether it's Buyers who are owner-occupiers or BTL... the numbers have to work. At these new rates of interest... it's not working without a price drop...

If you disagree and want to hold out for your 'right price' it could take a while... I don't know when things will swing back in the sellers favour... but thats the risk... hold out if you want to, (don't relet it since your refurb, keep it looking new), but if I was that keen to sell as you seem to be, I'd just get it sold and be happy that you're out the game unscathed.

Chances are you're not selling it at a loss, so I'm sure you'll be fine. Feel for the poor sod paying 6-7% interest on that loan, when a few weeks prior it was a fraction of that! I believe 2023 will see new levels of repossessions as people fall of fixed rates and really head for the exit, so I'd want to be getting ahead of that.

Good low fixed rate deals have all but disappeared so this is one factor standing in the way of people making offers...

Annie Landlord

13:54 PM, 13th November 2022, About A year ago

Reply to the comment left by Lisa Newton at 12/11/2022 - 10:10
I haven't said I would hold out for a high offer. I said my concern was that NO offers would come in. Interestingly I had an offer after just 5 days on the market at very near the asking price. However, I'm also acutely aware that sales are falling through as Lenders pull mortgages even if a DIP was in place. Some mortgage rates have fallen in the past couple of days so the picture is readjusting on a daily basis. All of us wanting sell just need to keep fingers crossed:)

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