How much to offer on new builds

Cleaver

I live in a rather large apartment block (they are all pretty much identical and all two bedroom) and I've just stuck my postcode in to houseprices.co.uk, stuck it in Excel and had a look at the average price for each calendar year.

2008 = 90.8k
2007 = 89.2k
2006 = 88.5k
2005 = 83.0k
2004 = 68.1k

So I guess for our flat to fall back to 2004 levels we need to see a 25% fall from 2008 prices, which maybe seems about correct, but I dunno really.

According to my rubbish analysis our flat rose in value by 1.7% in 2008. Although I can't really see how.

Add to the equation that we bought our flat for under 80k in 2007. So maybe it's risen in value by over 10% since we bought it. Again, I doubt that.

I'm confused.

Stats - odd things hey?

ruinen

I would be interested to know if anyone knows of somone who has actually offered 50% of asking for a new build. I can't imagine it would have a chance of get accepted.

These 2-Bedroom flats are currently being built and are offered at £140k - http://www.rightmove.co.uk/property-for-sale/new-homes/property-11945829.html. For £70k there isn't a property in this whole town currently for sale at that price (even studios are listed for more).

RDB

ruinen wrote: »

I would be interested to know if anyone knows of somone who has actually offered 50% of asking for a new build. I can't imagine it would have a chance of get accepted.

These 2-Bedroom flats are currently being built and are offered at £140k - http://www.rightmove.co.uk/property-for-sale/new-homes/property-11945829.html. For £70k there isn't a property in this whole town currently for sale at that price (even studios are listed for more).

Those are not too bad, they have solid block walls and a good roof by the look of it. Plus they dont seem over priced to start with.

We are talking about the thin plaster board framed blocks that shot up in places like London that were selling for 300K at the peak. Now they are close to the ones you showed just there but still have a long way to fall. These places will be the slums of the future and the price drops will have a knock on effect to other homes.

kier333

RDB wrote: »

Those are not too bad, they have solid block walls and a good roof by the look of it. Plus they dont seem over priced to start with.

We are talking about the thin plaster board framed blocks that shot up in places like London that were selling for 300K at the peak. Now they are close to the ones you showed just there but still have a long way to fall. These places will be the slums of the future and the price drops will have a knock on effect to other homes.

Can you point me in the direction of the 300k flats in London that are now 150k.

Do you have any real understanding of the London market?

I think 20% is more realistic drop currently not 50%

RDB

kier333 wrote: »

Can you point me in the direction of the 300k flats in London that are now 150k.

Do you have any real understanding of the London market?

I think 20% is more realistic drop currently not 50%

50% drop in London right here :-

http://www.propertysnake.co.uk/site/detail/22559133

I havent got time to do all the work for you.

But if you understood the truth whats really happening then you would know 50% is realistic.

chucky

RDB wrote: »

50% drop in London right here :-

http://www.propertysnake.co.uk/site/detail/22559133

I havent got time to do all the work for you.

But if you understood the truth whats really happening then you would know 50% is realistic.

hahahahaha - it's an Indian restaurant not a house or even flat!!! :rotfl::rotfl::rotfl:
the HPCers are getting very desperate now!!!
http://www.propertyindex.com/RS1269078/Queenstown-Road-London-SW8-3RE/100/

ruinen

We are getting off-track from the question of the orginal poster. There are plenty of discussions on the outlook for the market and the negatives of buying new builds. But am still interested to hear real world examples of offers made to new builds. I am sure I read on another thread a person having an offer of 28% off being rejected, but eventually agreeing a 22% discount. Anybody else?

chucky

ruinen wrote: »

We are getting off-track from the question of the orginal poster. There are plenty of discussions on the outlook for the market and the negatives of buying new builds. But am still interested to hear real world examples of offers made to new builds. I am sure I read on another thread a person having an offer of 28% off being rejected, but eventually agreeing a 22% discount. Anybody else?

i've had over 20% off a terraced property in London - twice

The_Fat_el_Hombre

Can someone define new builds please? Is it all new flats?

I'm looking to buy a flat in the city centre in a couple of years. I know a couple of years back round here they were blagging people with this 'city centre apartment' rubbish and charging ridiculous amounts for these things where you get very little bang for your buck. I've noticed a lot of them coming down now, obviously, although some are still trying to charge top dollar through shared equity (like this http://www.rightmove.co.uk/property-for-sale/new-homes/property-18696509.html?locationIdentifier=OUTCODE%5E1564&sortByPriceDescending=false&minPrice=80000&maxPrice=90000&displayPropertyType=flats&radius=0.5&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E1564%26sortByPriceDescending%3Dfalse%26minPrice%3D80000%26maxPrice%3D90000%26displayPropertyType%3Dflats%26radius%3D0.5%26oldDisplayPropertyType%3Dflats). I'm going to avoid some of the tower type ones that although they've dropped in price still don't look like good flats and could well drop further in the future (like this http://www.rightmove.co.uk/property-for-sale/property-18464497.html?locationIdentifier=OUTCODE%5E1564&sortByPriceDescending=false&minPrice=80000&maxPrice=90000&displayPropertyType=flats&radius=0.5&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E1564%26sortByPriceDescending%3Dfalse%26minPrice%3D80000%26maxPrice%3D90000%26displayPropertyType%3Dflats%26radius%3D0.5%26oldDisplayPropertyType%3Dflats)

I've noticed you can get decent flats now for around £120k but I expect they will drop further and I'd be willing to pay £80-90k in a couple of years. What you reckon? Is that likely?

kier333

Chlamydia wrote: »

Can someone define new builds please? Is it all new flats?

I'm looking to buy a flat in the city centre in a couple of years. I know a couple of years back round here they were blagging people with this 'city centre apartment' rubbish and charging ridiculous amounts for these things where you get very little bang for your buck. I've noticed a lot of them coming down now, obviously, although some are still trying to charge top dollar through shared equity (like this http://www.rightmove.co.uk/property-for-sale/new-homes/property-18696509.html?locationIdentifier=OUTCODE%5E1564&sortByPriceDescending=false&minPrice=80000&maxPrice=90000&displayPropertyType=flats&radius=0.5&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E1564%26sortByPriceDescending%3Dfalse%26minPrice%3D80000%26maxPrice%3D90000%26displayPropertyType%3Dflats%26radius%3D0.5%26oldDisplayPropertyType%3Dflats). I'm going to avoid some of the tower type ones that although they've dropped in price still don't look like good flats and could well drop further in the future (like this http://www.rightmove.co.uk/property-for-sale/property-18464497.html?locationIdentifier=OUTCODE%5E1564&sortByPriceDescending=false&minPrice=80000&maxPrice=90000&displayPropertyType=flats&radius=0.5&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E1564%26sortByPriceDescending%3Dfalse%26minPrice%3D80000%26maxPrice%3D90000%26displayPropertyType%3Dflats%26radius%3D0.5%26oldDisplayPropertyType%3Dflats)

I've noticed you can get decent flats now for around £120k but I expect they will drop further and I'd be willing to pay £80-90k in a couple of years. What you reckon? Is that likely?

Well if the flats are currently advertised for 120k then i suspect you would currently get a 20% discount anyway.

I think you will find on this orum many people live in a unrealistic work ie, 70% drops from highs, it will never happen.