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Am I a fool to sell my flat in London for 10k less than what I bought it for in 2017?

(52 Posts)
Ellax Wed 17-Feb-21 16:19:48

Will be losing about 70k including the stamp duty and renovations I did to the place but it’s not really suitable for us any more with the stairs and buggy. Should I wait for things to improve or do you think the market will stay crappy for years to come?

TIA !!

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Ellax Wed 17-Feb-21 16:20:35

I don’t want to hold off and then kick myself for not accepting this offer as I’m worried I might not get better. Have had hardly any viewings at all

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ComtesseDeSpair Wed 17-Feb-21 16:26:59

How desperate are you to move? How would this affect your ability to purchase your next property? Has your agent given you much feedback about why you’re not getting viewings?

The market is strange currently and has definitely flattened somewhat for flats and typical FTB properties due to scarcity of high LTV mortgages, but unless you really overpaid in 2017, to have done what sounds like significant renovation work and still be looking at a loss on the actual previous purchase price is unusual.

msgloria Wed 17-Feb-21 16:38:16

If you can afford to move and you can find something you like then I would. You've had the benefit of the renovations yourself presumably, so it's not a total loss in they respect.

I know it's not exactly the same situation, but I've recently sold my house for about £40k less than one of my near neighbours bought at in 2016 - both houses were sold with a similar layout and spec. Whereas the new place I've bought would have been a fair bit cheaper in 2016 than the price I've just paid. It's micro markets - there was too much supply of houses at a similar price point when I sold mine, but not as much of the type I went on to buy. It's annoying but I've got the house I want now, so I keep reminding myself of that.

Bells3032 Wed 17-Feb-21 16:47:20

I'm selling mine for £18k less than i bought it in 2016. Bought high, selling low but you can't win them all. What's that at a percentage of it's value. if it's a 100k flat (unlikely) then it's a big chunk, if it's a 500k flat probably not. would you have enough equity left to buy what you want/need?

you gotta do what's right for you and need to take into consideration the extra stamp duty if you keep it when buying a new home or inconvenience of being in that home. I doubt that the market will change significantly in the next couple of years

Persipan Wed 17-Feb-21 16:55:53

I think ignore what the market might or might not do, ignore theoretical money you might or might not make or lose, and make a decision based on whether you can afford to move right now to something more suitable for you. At the end of the day it's for living in.

Caroline147 Wed 17-Feb-21 17:02:21

I would go for it- we bought our flat in 2015, and we’re breaking even on what we paid for it + what we’ve spent on renovations, even though our area has been increasingly popular. Another flat in the building with the same layout and in a worse state than ours sold for significantly more two years ago.

We’re able to afford our next property without selling higher, so we’re focusing on that. Don’t expect the market for flats to recover for another year at least, and we wanted to move now. It’s depressing, but I keep telling myself that COVID wasn’t predictable so we haven’t been stupid- it’s just bad luck.

HotChoc10 Wed 17-Feb-21 17:42:00

Agree with the above. Also think about how much money renting since 2017 would have cost you.

DianaT1969 Wed 17-Feb-21 18:15:52

I can't see any reason why demand for apartments in London will increase in the next couple of years. I'd take the hit if you can buy what you need elsewhere.

DaphneduM Wed 17-Feb-21 18:29:05

I would carry on with the sale. A bird in the hand and you'll be able to get on with your life. Can't see the market in flats getting any better to be honest.

Jarstastic Wed 17-Feb-21 18:43:14

What’s your personal situation?

Hepsie Wed 17-Feb-21 18:45:53

I'd rent it out instead until the market picked up again. Unless you're not in a position to. Which you might not be.

RippleEffects Wed 17-Feb-21 18:56:25

Do you have something you want to move too - or are you cashing in?

If you're stepping off the ladder and clearing debt then its possible every pound counts. If you're moving up the ladder percentage wise you're better off if the market is slightly depressed (like I'd say it is now in some areas) It means there is often slightly more room to negotiate on your purchase in the same way your potential buyer has with you.

Rather than thinking of the loss on this property - think of the price differential between this size of property and the next.

Say your flat is worth 100k and the property you want is 200k the difference would be 100k. If the market goes up 10% your flat is then worth £110k but the property you want to buy £220 and you need to borrow an extra 110k not 100k. Over simplified numbers but hopefully show the point.

If you don't accept the offer will go away. If you do its not legally binding for a while and whilst not idea tentatively accepting would buy you more time to reflect.

BrilliantBetty Wed 17-Feb-21 18:56:43

Pulled out of a sale last year as we would only be getting £20k more than what we paid in 2013. I decided to keep hold because I believe London property prices are bound to rise again at some point and I could make a good amount renting out, with a buy to let mortgage. I have a second mortgage on the property I live in.

nellyburt Wed 17-Feb-21 19:03:46

I'd second renting it out.

Dustyboots Wed 17-Feb-21 19:07:33

I wouldn’t rent it out. We are about to enter a huge recession. Prices will drop a little at best. Thousands are leaving London.

We are also about to sell and I’m thinking now will be the best time for a while to come.

ResIpsaLoquiturInterAlia Wed 17-Feb-21 19:12:12

As some posters have asked I think if you give further information and context - the more appropriate and possibly relevant and helpful the response. You don't need to give details just some indication of what, where and why etc.

What is the approx selling price?
What are the recent recorded transactions pricing for similar in the locality?
What type of property is it?
Where?
What is your reason or plan eg relocation purchase up sizing elsewhere in a cheaper location and if so what is the purchase price of that property and the discount you can achieve off that asking price etc

Overall depending on where you are the market is volatile and not very predictable for obvious reasons. Estate agents will always be the most optimistic as that their game but lending institutions and surveyors will be more realistic on values.

AntiHop Wed 17-Feb-21 19:18:34

It depends on the overall value of the flat and whether you are buying somewhere else or renting.

Also, I don't understand why you would be losing £70k?

Ellax Wed 17-Feb-21 19:29:10

I change the floor and windows and other stuff so including the stamp duty that was paid that’s roughly how much Im losing.

We’d be moving to a family owned home in the interim which will be vacant with the plan to buy somewhere else that’s bigger and further out.

I initially put the flat on the market to see if I’d get a good offer listed at 715 (was bought for 685 a few years ago). Have hardly had any viewings and this is the only person who’s made an offer of 675 and That was after some serious negotiating. I said that actually I wouldn’t accept 675 as on principle I can’t justify selling it for less than a paid for it.

Other flats down the road which are like for like are accepting offers 20-30k less than the one I’ve got.

It’s right in London and the benefit it has is that it close to transport links. I could hold onto it for another year or so if I felt like there was a big chance I could sell it for more than this offer but I just think that’s highly doubtful.

My gut is saying to just get rid of the place

OP’s posts: |
Ellax Wed 17-Feb-21 19:30:30

Sorry there’s some typos I hope my message made sense (today has been a long and exhausting day). I’m now worried that the buyer may now have disappeared. It was only yesterday afternoon that I said I’d at least like 685 and will not accept lower.

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Ellax Wed 17-Feb-21 19:31:34

Oh and the most one of these flats has ever gone for is 695 and that was 3 years ago

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RippleEffects Wed 17-Feb-21 19:38:19

I'd reframe it as a £10k mental shift. Its approximately 1.4%.

1% sounds like such a tiny amount for being able to move on with your lives in a property that is closer to your needs? Being in a cash rich postition to move back onto the property ladder. A year of potential hassle, tenants damage, empty property whilst waiting for sale or £10k off now.

MuttsNutts Wed 17-Feb-21 19:38:45

If you want to move sooner rather than later (and who knows how long it will take for the market to pick up) and can afford to take the hit, accept the offer and get on with your life.

Potential buyers care not one bit how much you paid for it or how much you’re losing and if they can get another similar flat down the road for less, that’s the one they will go for.

ComtesseDeSpair Wed 17-Feb-21 19:38:46

I think if the highest one of the flats has ever sold for is £695k and you’re now being offered £675k and not reliant on more to be able to move on, I’d take it; unless you’re in a position to let it out for a few years whilst prices rise again.

Starseeking Wed 17-Feb-21 19:48:39

I'd grab that offer with both hands! It's £10k off what you bought it for, which isn't ideal, so reframe it as you've enjoyed the benefits of living in the place, as well as not having paid rent during that time period.

The London market, particularly for flats, isn't expected to improve for a long while, as so many people have realised the benefits of having outside space during the pandemic.

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