£100K homes return to London

chucky

lostinrates wrote: »

Its not clear that it hasn't dropped from a higher value in between times, e.g. what its worth was in 2007.

my expectations where that it was a council flat and my comments in relation to it being "Grotty, and the ground floor of a 6-storey council block".

there is larger than normal volume on the market and was expecting this type of flat to be "bargain basement" type property

beingjdc

chucky wrote: »

that's only a 13% price drop since May 2005 - i would have expected more.

Remember that house prices in London went up by 25% between May 2005 and Summer 2007. The highest price paid for a similar flat was £143k. So we're 30% off peak if they get the asking price.

I doubt they will, a private 2-bed 2-bath is on the market for £175k round the corner, so how can an ex-council 1-bed be worth more than half that?

chucky

beingjdc wrote: »

Remember that house prices in London went up by 25% between May 2005 and Summer 2007. The highest price paid for a similar flat was £143k. So we're 30% off peak if they get the asking price.

I doubt they will, a private 2-bed 2-bath is on the market for £175k round the corner, so how can an ex-council 1-bed be worth more than half that?

sorry, my initial point wasn't expressed very well.

this type of property (with all respect) to me is a 'bargain basement' type property so would/should always be valued much less than a modern 2-bed 2-bath.

however between 2005 and 2007 this did not happen and the correlation in value between council property, new build flat terraced property etc... was skewed all over the place and made no sense. there were ex-LA property being priced close to the value of a terraced property.

until this is corrected that £175k property or even the £100k council property will not have the correct value or sale price.

botchjob

Yoshua wrote: »

Earth, and this planet may be going through the worst downturn ever. I agree that Londoncould be looking at 100K average prices sooner than most people think.

In point of fact, cloud-cuckoo-land is not on planet earth. Average London prices topped out at around £325k. Are you seriously suggesting that London is in for an ‘average’ 70% fall ?

Even the most pantomime of bears on here might be sucking their teeth at that notion.

drc

It's not 100k but 150k (at auction guide price) which is unthinkable for a 3 bed in this area which is very trendy and sought-after;

http://www.rightmove.co.uk/property-for-sale/property-24766424.html?

However, upon investigation the caveat is that it has a shortish lease (ends in 2068) and has a low energy rating and by the sounds of it needs a lot of work to make it energy efficient and needs money spent on insulation, heating and water.Otherwise a bargain

GDB2222

Thrugelmir wrote: »

So why pay a £1,000 a month in rent? If prices are falling this far then a FTB might as well buy a property. As FTB's buy rather than rent this will then squeeze rental yields downwards.

Maybe auction prices are more representatative of the real value of property than head line prices in EA's.

The BTL investors rent out this type of property to people who cannot buy - on housing benefit for example. Now, the real question is why HB pays so much ....

chucky

drc wrote: »

It's not 100k but 150k (at auction guide price) which is unthinkable for a 3 bed in this area which is very trendy and sought-after;

http://www.rightmove.co.uk/property-for-sale/property-24766424.html?

However, upon investigation the caveat is that it has a shortish lease (ends in 2068) and has a low energy rating and by the sounds of it needs a lot of work to make it energy efficient and needs money spent on insulation, heating and water.Otherwise a bargain

lol - yes a bargain.

due to it being a trendy and sought after area; the owner or the EA has factored and built it in to their price. with out knowing rental income or the area i'm assuming it could attract a BTLer, especially it being in zone 2.

GDB2222

drc wrote: »

It's not 100k but 150k (at auction guide price) which is unthinkable for a 3 bed in this area which is very trendy and sought-after;

http://www.rightmove.co.uk/property-for-sale/property-24766424.html?

However, upon investigation the caveat is that it has a shortish lease (ends in 2068) and has a low energy rating and by the sounds of it needs a lot of work to make it energy efficient and needs money spent on insulation, heating and water.Otherwise a bargain

Surely, the guide price is just to suck people in? My guess is it will go for well over £200k, unless there's something wrong with the block I haven't heard about.

drc

GDB2222 wrote: »

Surely, the guide price is just to suck people in? My guess is it will go for well over £200k, unless there's something wrong with the block I haven't heard about.

Yes, I think you are right and I am certain it will go for a lot more. Will be interesting to see the result.

hethmar

That isnt a particularly nice area though is it? Isnt that next to that huge road and well away from the real Muswell Hill? I think we looked at some of those flats a while back, traditionally not very expensive and a lot of LA properties? Having said that the building looks nice and Id have thought £200k plus.