ASK214: How can I overcome a lack of comparables? PLUS: Are developments that have lost value a good buying opportunity?

The Property Podcast

Rob Bence & Rob Dix

News, Education, Business, Investing, Business News

4.8 • 2K Ratings

🗓️ 26 November 2019

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

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Summary

This week on Ask Rob & Rob, the guys are back again with two different questions that they’ve not covered previously. They’ll be talking about what to do in the event of there being a lack of comparables discussing if properties that have lost value are worth investing in now. Our first caller today is Paul from Burnley. At the beginning of the year Paul purchased his first buy-to-let property and now he’s hoping to soon complete on property number six! That’s pretty good going for less than 12 month’s work! Paul’s strategy is buy-refurbish-refinance with a difference - he focuses on bungalows. So not your usual property choice, but clearly it’s working for him. However he’s now ran into a bit of an issue. Because it’s such a niche strategy, he’s having difficulties when it comes to searching for comparables in order to remortgage the properties. Obviously Paul’s end game is to have made as much profit as possible on the properties, so he’s wondering what he can do to prepare that information when the valuations take place? Luckily, Rob D is on hand to offer Paul some pointers on how he can go about this. The second question comes from Luke in Liverpool. He has a small portfolio himself and is continuously looking to add to it. He’s been keeping his eye on the local market in and around Liverpool, in different areas and has noticed that some developments that were priced between £130,000 - £140,000 are now on the market for around £90,000. So now he’s wondering if these kind of properties are a good investment opportunity or if they are just going to continuously lose value and he should stay well away? Naturally, there was only one Rob that could offer advice on the Liverpool market, cue Rob B. Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply). Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours. Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0	Hi, I'm Rob, and I'm Rob.
0:04.0	And this is Ask Rob and Rob.
0:08.0	Hello everyone and welcome to the Ask Rob and Rob show,
0:11.0	the show that yes, you ask Rob and Rob your questions and we give you answers.
0:16.4	Well, we may be getting towards the end of the year, but our enthusiasm for getting your questions
0:21.2	answered has not waned and we've got two great questions in this week.
0:25.0	Yes we have and if you want to send in your own it's dead easy just give us a call on
0:28.5	013 808 triple 035 and leave us a there, or do the same thing via the website at
0:35.0	Property Hub.net slash ask. That way you can follow in the footsteps of Paul.
0:40.0	Hi Robin Rob, it's Paul from Burnley. Really appreciate all the free content that you share.
0:46.0	It certainly encouraged us to take the first step this year. We bought our first property in February and hoping to complete on number six next week.
0:54.9	So thank you for that.
0:56.7	My question is about bungalows.
0:58.4	So we're looking at a strategy of buy, refurb and refinance bungalows so that we can rent them out.
1:08.0	Key to that strategy is the end value when we refinance the bungalow and what we're finding is the
1:14.7	costs of the demographics of bungalows typically there's a low turnover of
1:19.5	sales so we're struggling to get sold comparables in the vicinity.
1:24.8	What steps could we take to mitigate that end value and how you might we prepare the
1:30.9	information to when that valuation takes place our end value secured.
1:36.1	Thanks guys. Bye. Thank you Paul. Really good question and unfortunately not a question with an easy
1:42.1	slam dunk answer is like,
1:44.0	I just do this and everything will be fine. Valuations are always a bit of a dark
	...

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