Hi Remmy,
Sorry no profits will be achieved by any contract owner at the moment. The situation is the same for any homeowner. As I understand it, most resale properties are down 10% to 30% and in some cases more. The banks are also offering repossessions at up to 50% of normal market prices.
Contracts with less than 3 months to completion are likely to only achieve about 5%-10% of their value. Contracts with a year or 2 to run are fetching better prices, around 20% to 40% of their original value.
Our buyers will normally take out a mortgage on completion and will have to weather the difficult rental market as well as pay a high percentage mortgage interest for a year or 2. Their plan is to wait until the market upturns, so by then they would have paid considerable mortgage repayments.
The buyers/investors are taking a gamble which explains why they do not want to pay full price.
There are some contract owners who are at the point of giving back their contracts and losing all their deposits. Thatīs where we come in as we can at least get something for them. There is no charge to the contract owners, the new buyer pays all the transfer and legal fees, which is another reason why they are looking for keen prices to begin with.
I have no shortage of investors, they have been in the line for some months, they are just waiting for a better flow of contracts.
I hope you can help.
Regards, |