Would you buy an Apartment/Flat in the current climate?

Mexas

I've been looking at houses in an disirable area for the past 3 months, but nothing has come on the market that I like, any thing i do like is way over my budget.

Anyway, i had a quick search for apartments in Manchester City Centre and i'm quite surprised at what my budget will get me (2 bedroom, large living space etc).

Obviously they built far to many apartments in the City and they are now very reasonably priced.

I suppose the question is, would they make a good long term investment? and would you consider buying one to much of a risk?

Im a FTB and im not looking to BTL.

ciano125

Personally, I wouldn't touch one with yours, if you see what I mean!

As you've said, they've built far too many, so when it comes for you to sell, you'll have massive amounts of competition and might struggle to make yours stand out.

penguine

Things you'd need to consider -- whether other flats in the building you'd buy in were sold, and if so to owner-occupiers or not. If there are too many on the market and they're difficult to let, you could either be living next to the neighbours from hell or lots of vacant flats which would raise security issues as well as being a bit lonesome.

Also look carefully at the maintenance costs for the building.

Pssst

Mexas- i live in your neck of the woods also and curiously,i too was scanning flats in manchester only this very afternoon on the interweb.

Its true that prices are falling. Some people are or have been repossessed and some flats are selling at a fraction of what they originally sold for. There is massive over supply and it is a ticking timebomb.

Additionally,those with flats trying to let them out,have the rents too high but they are afraid or refuse to drop them becuase they have over priced mortgages to meet.

I was thinking the same as you...but what really scares me is who will be my future neighbours if i buy?

That put me off....for now.

bluejake

Mexas wrote: »

I've been looking at houses in an disirable area for the past 3 months, but nothing has come on the market that I like, any thing i do like is way over my budget.

Anyway, i had a quick search for apartments in Manchester City Centre and i'm quite surprised at what my budget will get me (2 bedroom, large living space etc).

Obviously they built far to many apartments in the City and they are now very reasonably priced.

I suppose the question is, would they make a good long term investment? and would you consider buying one to much of a risk?

Im a FTB and im not looking to BTL.

No no no and no.

pizzagirl

Mexas wrote: »

I

Obviously they built far to many apartments in the City and they are now very reasonably priced.

.

They're still way over-priced. Be careful.

franklee

You would also need to consider the maintenance costs especially in larger blocks that have a lift which are costly to maintain.

Thing is with repossessions and absent landlords it can be difficult for the managing agents to collect the cash. Therefore the block goes down hill. In the worst cases the managing agent goes bust or resigns. Then the block goes downhill more.

Then the standard of tenant goes down and the communal areas get grubby and damaged causing the maintenance charge to go up.

Then a few more of the BTLs get repossessed, and ... well you know.

Doozergirl

Two years ago I would have said an outright no.

Now, I'd have a little think about whether the price was significantly less.

And then remember how many of the things there are and the competition to sell a product no-one really needs, how many have been repossessed and sold cheap and how many more times that has to happen for them to find their true vale. And then how the managing agents will be increasing their service charges dramatically when these places actually need maintaining (how much maintenance for a brand new property?! maintaining what exactly?!)and how that will affect resale value when the block is too big to self manage...

And I'd say no again.

JoolzS

If you could consider the property a real "home" then go for it - if not then don't.

I bought a property around 20 years ago that I presumed I was going to be selling within 5 years and moving on. I then fell in love with it so didn't move at exactly the right moment. Twenty years on it is still my home. It's far too small, has no garage or garden, but to get those things would have cost far too much on the mortgage. I do now have a lovely storage room in the attic.

The most important thing is that when I put my key in the door - I'm home!

I don't live in a three bed house and neither does most of the world. I love my little two bed flat - it's definitely home.

I probably wouldn't feel the same way about a flat in a block.

Julie

Fire_Fox

Mexas wrote: »

I've been looking at houses in an disirable area for the past 3 months, but nothing has come on the market that I like, any thing i do like is way over my budget.

Anyway, i had a quick search for apartments in Manchester City Centre and i'm quite surprised at what my budget will get me (2 bedroom, large living space etc).

Obviously they built far to many apartments in the City and they are now very reasonably priced.

I suppose the question is, would they make a good long term investment? and would you consider buying one to much of a risk?

Im a FTB and im not looking to BTL.

I adore living in my city centre flat which I bought in 2004 at a knockdown price (checked the sale price of others in the block). At the time it was a block that attracted mature foreign students and was easy to let. Value-wise it increased by 50% by 2007 and of course has gone down by 30 or 40% since.

Being neglected by our rubbish management company, we now have empty flats and short-term tenants. We are also in a long-running dispute over the service charges. The year before last we had tramps living in the building for three weeks, last year a resident put his foot through a rotten tread on the fire escape and presently the foyer ceiling is about to fall in (severe water damage).

Yes, a well chosen apartment purchased at a heavily discounted price has the potential to be a good long-term investment. Do not fall into the trap of thinking a new build flat will be hassle-free - you may be charged through the nose and have to fight to get the services you are paying for.

Management companies usually don't have the right to refuse to provide services when some leaseholders don't pay, however that doesn't stop them trying it on. If you familiarise yourself with the legal position and keep an eye on the accounts from day one you will hopefully be able to nip any problems in the bud.

This website is excellent, and their telephone advice service free:
http://www.lease-advice.org/publications/documents/document.asp?item=14

Trust_2

if you can afford it and it is in the right location, and it is what you want to pay, go for it.

Are we at the bottom, no idea, and no-one does

(Always go in for a low price, well below asking as all they can say is no!)