New Builds fall 50%

mvengemvenge

Glad I stayed with 'old'......

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5796477/Price-of-new-build-properties-have-fallen-50pc-not-9pc.html

ad9898_3

Good job they are not included in the LR or FT figures, otherwise we could see those indices knocking on -25%+ now.

mvengemvenge

ad9898 wrote: »

Good job they are not included in the LR or FT figures, otherwise we could see those indices knocking on -25%+ now.

My daughter bought one of those '75%' new-builds from Lovells. I fear for her finances in the future.

Snooze

So someone who bought a new build for £250k would be quite upset to know it's only worth £125k now. :rotfl:

Oh dear.

Rob

PasturesNew

For those that didn't click the original link, this is the price drop they're on about:
http://www.houseprices.co.uk/e.php?q=7+Henry+Laver+Court%2C+Colchester

StevieJ

Is 'new build' a euphemism for new flat? it always seemed to me that way too many flats were being built, at strangely much higher prices than the flats already in situ. It seems that some new build houses I have seen have held up pricewise quite well but not inner city flats.

PasturesNew

I checked out some others in that same block (after reading the thread in the Renting forum of "We exchanged 4 weeks ago, moving in Friday (10th) ... and the sellers have pulled out") ...

Anyway, here are some other numbers:

35, £225k to £145k to £120k -35.6% then -17.2% (sold twice)
33, £234k to £125k -46.8%
13, £288k to £150k -47.9%
11, £250k to £170k -32%
37, £237k to £160k -32.5%
41, £240k to £145k. -36.65%

The only one that on LR has seems to have turned a profit is number 123. But as it is dated 18/09/2006 twice at both £300k and £399k, that might be a flipper.

Before that it was number 28 which last went up in price. It was new at £210k in June 2004 and sold for £225k in September 2004 (+7.2%).

I have the plugin that does all the showing/maths for me ... it's a sea of red on that page.

pizzagirl

Snooze wrote: »

So someone who bought a new build for £250k would be quite upset to know it's only worth £125k now. :rotfl:

Oh dear.

Rob

Could that certain someone be Really2? The giant turnips will be appearing in his nightmares tonight I should imagine.

brit1234

A owner of a large building supply company called new builds over expensive, poor quality and too small compared to conventional properties on yesterdays way up to money

http://www.bbc.co.uk/iplayer/episode/b00ljkb9/Wake_Up_to_Money_10_07_2009/

Why would anyone buy such tat when they start to fall apart from day one, why pay 7 times your salary for this rubbish.

Spartacus_Mills

brit1234 wrote: »

A owner of a large building supply company called new builds over expensive, poor quality and too small compared to conventional properties on yesterdays way up to money

http://www.bbc.co.uk/iplayer/episode/b00ljkb9/Wake_Up_to_Money_10_07_2009/

Why would anyone buy such tat when they start to fall apart from day one, why pay 7 times your salary for this rubbish.

Easy.

Because property prices only ever go up not down.

:cool:

Lotus-eater

brit1234 wrote: »

A owner of a large building supply company called new builds over expensive, poor quality and too small compared to conventional properties on yesterdays way up to money

http://www.bbc.co.uk/iplayer/episode/b00ljkb9/Wake_Up_to_Money_10_07_2009/

Why would anyone buy such tat when they start to fall apart from day one, why pay 7 times your salary for this rubbish.

Wow, that was a pretty unlikely thing for him to have said, bit ratnerish, although it won't be his business that will be affected, but his customers, who aren't going to be that happy about what he said, I should have thought.
He actually said that many of the houses built are the wrong sort, to what people want, badly built, small and something else I forget.

The interview starts 5 mins in.

What was interesting, is that he said that greenshoots are appearing as reported in most places, but only in a very few areas and prices are still going down, he didn't expect any sort of pickup before next year. He also said nothing will get going until the companies sell off their stock of houses that they don't want to sell at reduced prices.
Also that house builders had made obscene profits on building houses since 2004........ so reading between the lines, if he thinks they made a reasonable profit before then, then prices should go back to before 2004. Should