The Rotunda in Birmingham - BTL failure poster boy.

WTF?_2

http://www.birminghammail.net/news/top-stories/2008/06/11/rotunda-flats-hit-by-credit-crunch-97319-21056517/

BUYERS who snapped up expensive flats in Birmingham’s Rotunda have become high-profile victims of the credit crunch.
The owners, who bought their iconic properties in a frenzied 20-minute spending spree, are now trying to sell up because they are already thousands of pounds out of pocket.
The credit crisis, rising mortgage rates and plunging house prices are leaving many purchasers who queued up for 24 hours back in 2005 facing a vicious spiral of debt caused by falling rent income and, therefore, negative equity.
Fears are growing that one of Birmingham’s best known landmarks could become a property white elephant amid forecasts that house prices could fall further.
..
"But the rents are not going to cover the mortgages - buyers are already running at a loss. Ninety-eight per cent of the buyers at the Rotunda are buy to let - you can try to sell them but you are not going to do so at the moment.
..
Another Birmingham mortgage expert said of the Rotunda crisis: "Some rents have reduced to around £480, but they are not even moving at that price, parking being a key issue.
"Most of the mortgage payments are around £700 to £800. Some of these are now on the market for £130,000. They were purchased only two months ago for £150,000 and the valuers all confirmed the valuations at that price for a variety of different lenders."

Probably the icon for failed property investment.

ad9898_3

Greed, plain and simple.

stevetodd

I would never buy into anything like that as all the figures casted about regarding values and rents are all based on nothing but hype

adr0ck

flats enough said

neverdespairgirl

There are 79 on rightmove to rent:

(1) Advertised at £495 per month, studio, let agreed.

http://www.rightmove.co.uk/viewdetails-22016441.rsp?pa_n=1&tr_t=rent&mam_disp=true

(2)Advertised at £570 a month, 1 bed, on since August, no takers yet.

http://www.rightmove.co.uk/viewdetails-20776010.rsp?pa_n=1&tr_t=rent&mam_disp=true

(3) The most expensive, a 2 bed, on since mid-Sept with no takers, @ £1,300 a month

http://www.rightmove.co.uk/viewdetails-19333960.rsp?pa_n=4&tr_t=rent&mam_disp=true

There are 7 up for sale, since June, none SSTC. One has been reduced from £350k to £250k

http://www.rightmove.co.uk/viewdetails-21876857.rsp?pa_n=1&tr_t=buy&mam_disp=true

chucky

you'd have to not understand the property market and the people selling these things if you got involved in these properties.

buxtonrabbitgreen

Yes but the economic climate was very different in 2005 and they probably looked like a good investment. I am not about to mock anyone who made a descision that in retrospect was a bad decision. Hindshight is a wonderful thing..

scousethife

buxtonrabbitgreen wrote: »

Hindshight is a wonderful thing..

Surviving a plane crash is a wonderfull thing too. But you wouldnt get on a plane with only 1 decent engine would you.

amcluesent

Social housing!

Brum's chavs and dole-scroungers will love their penthouse apartments.

mewbie_2

amcluesent wrote: »

Social housing!

Brum's chavs and dole-scroungers will love their penthouse apartments.

I don't want to be picky but social housing does not have to immediately equate to chavs and dole-scroungers.

I understand chav to mean people with no class (but possibly loads of money), so they might well have owned these flats in the first place.

As for dole-scroungers - does that mean everyone on the dole is a scrounger? Or all scroungers are on the dole? I guess a sizeable percentage of people on benefits may have no choice in their situation.

Actually I did mean to be picky.

PasturesNew

I couldn't afford to rent the studio. And I bet for the same money within 2-3 miles I'd have a wide choice of better/larger places to rent.

It's the same old story: wherever did they think they'd find enough people that could afford these rents?