With or without tenants?

Reply to the comment left by "Colin Dartnell" at "30/06/2014 - 18:34":

Thanks Colin

I agree with what you have said, Colin. However, it doesn't seem to work like that in practice. I have tried all these avenues, but the local agents don't seem to have people looking to buy a solid portfolio, only people looking to offer ridiculous sums in hope I might be short of a few marbles and take a massive loss. The other main reason is the agents no longer seem to value property based on location, demand, quality, facilities etc. Only what the last one sold for on Zoopla or Rightmove plus or minus a couple of grand. Therefore, because of 2-3 distress sales, now they value everything based on that. I was hoping to connect with buyers not aware of my portfolio on offer, but I think trying to find answers on this site is not going to work, but I appreciate your input.

Bob, if you are looking to sell with tenants in situ you should consider sale by auction.
1) No loss of rent to you until sale completes
2) No need to disturb tenants
3) You will get best price from all the market of buyers under bidding competition

Many properties are sold by professional landlords by auction and bought by landlords, not investors but landlords, people looking for steady mid-long term income growth with advantage of some capital growth.

Regards yield, 5.8% means little unless we know if thats gross, net, 12 months occupancy, service / maintenance charges, finance charges as well as how you calculate your yield - based on deposit paid if mortgaged or purchase price and so on etc.

The first thing you should do is get some proper valuation advice on selling them by auction, dont be fooled into selling all as a portfolio, make sure you sell them as seperate lots to multiple bidders, you will sell for better price.

In relation to Estate Agents valuations based on last sales, they are actually right to do that, if the market says your flat is cheap you will get multiple competing offers, best and finals and sell for more than the asking price, this is then the new current value, auction is different, many properties are selling for more than local agents have had for sale - power of auction !

Ge them valued first............
Regards
Oliver

Reply to the comment left by "Oliver Adams" at "01/07/2014 - 23:06":

Thanks for the advice, Oliver. I think I have another way forward on this problem.

Slightly different thought. Is re-mortgaging a possibility? What would your CGT liability be?

Hi Bob, don't be dismissed by those who pooh pooh your yield. I know of investors who brag about their 15% yields yet their equity in the property is still falling. The bulk of my properties are in London where most investors would take your arm off for 5.8% coupled with an uplift in value of a shade under 20% in the last 12 months. From what I hear of Manchester, the market there is increasing rapidly also. No chance you could hold onto them for a bit longer I suppose?

Hi Bob, I agree with Oliver, I have been to the Barnard Marcus auctions in london, it seems it's the only one where you can find the properties without having to sign up to an "auction-service", and the prices seem to reflect a good high streeet value, unless the properties are for renovation, then you can get a bargain, perhaps.

I also agree you should sell the individually.

And again, to re-iterate Adrain's suggestion, can you release some capital without selling all of them?, that way you won't get hit by a big CGT bill either !
Perhaps some funds can be released from the flats, then get further funds for your new venture because you then already have, say, 50% funding !
You then keep your reliable monthly income which ensures you have a good, solid foundation income to rely upon.