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Debate House Prices


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Aviva Plc is preparing a 1 billion-pound fund to purchase newly built homes.

2

Comments

  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    OK, could cause the prices of flats to drop.
    maybe, but they are looking to buy those new builds that nobody wants. the ones that are sitting empty - they will get these for peanuts, give them a clean up and make them attractive and probably rent them as an Aviva 'social housing' type thing.

    the yield generated for Aviva from buying them at peanuts will be very high.
  • amcluesent
    amcluesent Posts: 9,425 Forumite
    Demand will be there - Population 'will soar to 70m by 2027': Official figures reveal full impact of migrant influx

    Put 5 EEs into each new-build flat and you're sorted. How does one get in on the Aviva fund?
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    this will be blocks of new builds - a $1.6 billion fund will be 6,700 properties.


    try again

    Bit confused over the sums, is that £23,880 per property or £238,800?
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ILW wrote: »
    Bit confused over the sums, is that £23,880 per property or £238,800?
    you would be - the fund value is in $$$ not £££

    $1.6bn = £1.0bn / £150k = 6700 properties

    try again
  • Batchy
    Batchy Posts: 1,632 Forumite
    This will push up prices for FTBs
    Also it will push up prices for new builds and reduce their supply, and probably reduce the quality also.

    This has a three fold effect
    Increasing rents/ decreasing rents in some area's
    decreasing ability of FTBs to compete
    Increasing price of older houses due to the bad quality of stack em high type new builds.

    WHY would they call them social housing... they will call them exectutive housing... because its an apartment rather than a flat, expect the use of the words... Condo's, Villa's etc...
    Plan
    1) Get most competitive Lifetime Mortgage (Done)
    2) Make healthy savings, spend wisely (Doing)
    3) Ensure healthy pension fund - (Doing)
    4) Ensure house is nice, suitable, safe, and located - (Done)
    5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)
  • ILW
    ILW Posts: 18,333 Forumite
    chucky wrote: »
    you would be - the fund value is in $$$ not £££

    $1.6bn = £1.0bn / £150k = 6700 properties

    try again

    Sorry, wasn't trying to make any sort of point.

    Seems a bit odd though paying £150k each for unsellable properties.
  • Exocet
    Exocet Posts: 744 Forumite
    ILW wrote: »
    Sorry, wasn't trying to make any sort of point.

    Seems a bit odd though paying £150k each for unsellable properties.
    Maybe they have been on one of Judith Wilsons courses.
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ILW wrote: »
    Seems a bit odd though paying £150k each for unsellable properties.

    As an investment it yields a lot more than buying commercial property and renting it out. They have identified residential BTL as a new business opportunity and are planing to invest on an industrial scale.
  • mudshark
    mudshark Posts: 47 Forumite
    Part of the Furniture 10 Posts Combo Breaker Mortgage-free Glee!
    ILW wrote: »
    Seems a bit odd though paying £150k each for unsellable properties.

    Well they're unsellable now but maybe not in the future and by bulk buying they would get good prices. Anyway, not sure they're too worried about that as its the rental yield they care about and if that looks right then all should work well. I'd be interested in investing in this as don't want to go into BTL properly but think it'd be good to have some exposure.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ILW wrote: »
    Sorry, wasn't trying to make any sort of point.

    Seems a bit odd though paying £150k each for unsellable properties.

    If how my endowment performed is anything to go by I would credit them which too much savvy
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