I own a property in Harlow Essex. I bought it for £53k back in 1998 and it was my first property purchase back in 1998. Now after 11 years I think it is time to sell it. Over the years it has provided me with a lot of capital, around £70k, which has funded my spending sprees.
This £70k seed capital sits within probably around 100 of my properties as the properties I bought with this £70k subsequently increased in value which enabled me to remortgage and buy more.
However I face a problem. I have tried to let it but I have really struggled. It has totally amazed me. I think the problem is the property is too big! It is a 5 bed 2 bathroom house with 3 storeys.
I tried to rent it for £995. no takers. I thought I will reduce it to £850 and it will go. No takers. It thought I would reduce it to £750, the previous rent set back in 2003 which the old tenant was paying. No takers.
I thought I would then give it away at £699. No takers. Now I am at £599, the price of a 1 bed flat in Harlow, and I reckon it will still not let.
So I did a check on Rightmove to see what it would go for. To my surprise properties near this area are going for £200k+. So considering it’s the credit crunch, which I believe is melting, I have decided to sell for £199,995.
Now who knows if I will get a buyer but I simply refuse to get a 3.6% yield on my property.
It is a perfect 2nd time buyer property. If the 2nd time buyer can sell their property then they will be able to buy my property. I will keep you informed. The market has changed. I really think we have turned a corner.
So when I sell I will bank £75k being the selling price less mortgage and I will invest it in a nice 2 year old Bentley. Only kidding. I will buy 15 more low money down properties of course!
Ajay
PS if you want to learn more about investing in low value high yielding properties find out about my training package which I am giving away.
Posted on: 7th Aug 2009
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