Buying a flat "bellow market value"

Shackattack123

Hi I was wondering if anyone had any veiws on this, I am looking to buy a property striahgt from the bank.

The property in question is a flat, at the peak in 2007 these flats sold for between 145k (highest) and 110k (lowest) however just had an offer accepted for 74k. Ok so great sounds good on paper, however i was put of by the large number of stories on the news claiming that to many flats have been built and they represent poor value. this particular flat is in a town near manchester.

IS this good value, i know from research that flats in 2008 where far to over priced however this is a bargain surely.

Anyone any ideas on this would be good to hear from more experienced property buyers.

Shack

G_M

It is meaningless to compare the value today with 2007.

Compare with similar flats today. Compare selling prices, not advertised prices. And compare like-for-like: location, size, condition etc etc.

poppysarah

Surveyor needed to give you an idea of what sort of repairs the whole building will need over your lifetime of ownership.

Shackattack123

Thanks G_M, i suppose my real question is do flats represent good value even if they are keanly priced or has John Prescots policy of allowing housing devlopers to build large volumes of flats had a negative effect. Has demand outstriped supply?

Doozergirl

Shackattack123 wrote: »

Thanks G_M, i suppose my real question is do flats represent good value even if they are keanly priced or has John Prescots policy of allowing housing devlopers to build large volumes of flats had a negative effect. Has demand outstriped supply?

That completely depends on what and where it is.

How many flats are on the market in the area. Indeed, how many flats are in the area! You have to look at whether what is on the market is actually selling. How near to Manchester? Would people perfer to live in a flat in Manchester considering that the sort of person the generally buys flats is younger, without children and having a social life.

Why is it £74k? Have you made a low offer? What was it on for? What is the service charge? Lease length?

Was it built in 2007 - is that when they hit the market, how many in the development? If they were new in 2007 then they almost certainly will be worth quite a great deal less.

So many variables that it's impossible to say but if you want to generalise, I'd be very careful indeed with buying flats.

SouthCoast

What are the service charges and are all the owners up to date with their payments?
Have you seen the latest accounts for the management company?

Doozergirl

SouthCoast wrote: »

What are the service charges and are all the owners up to date with their payments?
Have you seen the latest accounts for the management company?

If it's a repo they certainly won't be up to date. Make the mortgage company clearing the outstanding debt a condition of offer.

Running_Horse

Shackattack123 wrote: »

Thanks G_M, i suppose my real question is do flats represent good value even if they are keanly priced or has John Prescots policy of allowing housing devlopers to build large volumes of flats had a negative effect. Has demand outstriped supply?

Probably depends what you mean by near Manchester.

Altrincham and Bury are not the same as Droylsden and Eccles.

Shackattack123

Hi Guys

It is a repo. I spoke to the estate agent who informed me the owner had it repossed as it was a buy to let and didn't make economic sense.

Basically it has

100 year lease
Built at the peak 2006
£70 a month service charge

Seems like a good buy but from my point of view still baffled as to why it is cheap, is this just the true value.. a realignment?

Anyway thanks for all your advise, some good pointers here. Will look forward to sharing my learnings, (if anyones interested).

sonastin

Have you checked what other flats in the development and other flats in the town have sold for recently? Until you do, you won't know if you are getting a bargain at £74k.

Then agian, you are buying yourself a home here rather than an investment so if it is what you want to buy and a place you want to live in at a price you want to pay for it, it is irrelevant what the rest of the market around you is doing. A bargain is only a bargain if you actually want to own it

PasturesNew

How many in the block are owner-occupier? Would you be the only owner? Are the rest empty or filled?