flat purchases in salford quays

derrynane

I put down 2 deposits 5% on flats for the clippers quay development in salford quays last summer. They were priced at £172,000 (17th floor) and £159,000 (10th floor). These are due to be completed in 2012.

Have I made a serious mistake? I hope I am not asked fror further deposits as will not be able to pay them

lynzpower

Hi Derry.

I personally would pull out and find someway in your contract to get out of this.

They wont be ready until 2012!! WHY NOT!

fishtastic

bluejake wrote: »

See the middle picture. These flats are so small the guy has to read his magazine lying flat on top of the kitchen cabinet near the ceiling. Is there a ladder? - or does he just shimmy up the cooker?:rotfl:

I'm actually typing this from a mezzanine level above my kitchen, that looks down over my living room... I got up here using a set of stairs. I reckon the ginger girl gave him a boost up so she could have the sofa to herself, he'll have to jump down if she demands more coffee :coffee:. Either that, or he photoshopped his way up...

Fishtastic

motch

I'd love a decent sized mezzanine. I bet yours is better than the rather small salford flats one though.

Sorry to say Op but flat will lose way more than 10% ( imho )

motch

The developers have made good use of the space, but they must be some obscene amount of dosh per square metre. off the top of my head about £3300 per square metre?

danny69

After reading all this, it just shows what a state things are in at the moment. It seems like a lot of people were stung by the expectation of the market (and demand) to continue to rise. From what other people have said, it seems like the supply in Salford far exceeds demand. Another point which I dont think anyone has asked about is this 100k you are looking to release from the sale of property. If the contracts havnt been exchanged yet and the new buyers signed on the line, then the deal is not done. In the current climate, dont expect anything to go to plan. Just because someone says they are going to buy, it doesnt mean they will. I see your dilemma, im sure some people wont want to lose their deposits, and the developers are taking advantage of this, but on paper you are set to lose a lot more if you go through with it than if you pull out.

amcluesent

Would you not have more space buying a narrow boat on the canal?

poppy10_2

geoffky wrote: »

you will lose 30 to 40 % on these places and i am not joking....

Make that more like 50-60% for these sorts of properties. Honestly, asking anything over £70k for a studio in a hellhole like Salford is a joke.

Dithering_Dad

I'm assuming that prior to signing up for these properties, you did sufficient research to ensure that the rental demand was there and I'm also assuming that this was always going to be a long-term investment.

If this is the case, then I'd suggest you hold onto the properties than to just throw away £24k of your hard earned cash. Use the time until they are built to get as much money together as you can as buffer for non-rental periods and then continue with your rental plan. The value of the apartment is immaterial provided your rent covers the mortgage and if not, as long as you can afford to cover any shortfall.

To turn it around, had you bought the properties and they had gained £24k, would you then be rushing to sell them to grab this profit, or would you just carry on renting them long term until they were paid off (and then provided rental income in your retirement)?

Try and remember why you entered into the BTL market. If it was for a quick buck, then you've been burned. If it was for the long haul, then the value of the property doesn't matter a jot as long as you can afford the mortgage.

geoffky

poppy10 i was trying to ease the pain for them a little because if i told them what i really thought it might take them five years to recover....god help them...