Surveyors and over-valuing

TypeR

I hate to say this but:

Property doesn't always go up in value, contrary to popular belief it also goes down in value and with each interest rate rise the value will drop further.

Martin done a Property episode with Sir Trevor, and one of the myths he dispelled was "Property must always go up in value - Not True!"

Massive_2

movieman wrote: »

Anyone buying a new-build flat is being extremely brave

I operate in the new build arena, and you're right. There are ways to make excellent gains, but they are unavailable to the vast majority, and certainly not for the faint hearted or inexpert.

The new build market is specifically managed to make money from novice owners, and should be approached with caution.

TypeR wrote: »

Property doesn't always go up in value!

Technically of course this is true, but more to the point, even in a rising market, if you pay significantly over the odds in the first place, you will appear to have lost money even some years later.

As you say, it is necessary to accurately determine market value, and when you're misinformed from every angle, this can be very hard indeed.

ollyshaw

TypeR wrote: »

I hate to say this but:

Property doesn't always go up in value

Very true!

Olly

irnbru_2

nooners-princess wrote:

I am furious about this and I can't understand how a flat can lose £8k of value in 3 years.

Welcome to the other side of the property market.

Glasgow is full of new builds. You're up against a lot of competition to sell.

Drop the o/o price and generate interest. Offer to pay stamp duty.

nooners-princess wrote:

My feeling is that the surveyor valued it for far more than it was worth 3 years ago because they knew the person who was selling.

What did everyone else pay?

At the end of the day you agreed to pay the price.

irnbru_2

movieman wrote:

Worse than that, if there are still flats for sale in the block where you bought, the developer can afford to sell a new flat for less than you can afford to sell yours used, while still making a big profit.

Agreed. A few months back, a caller to a Radio Scotland phone-in described the scenario on one Glasgow development where construction costs were £600/m2 and selling for £2000/m2. He pointed out that the developer could always undercut any individual seller who bought off-plan and then tried to flip.

mizzle_2

The value of investments can go down as well as up. Property is no different. The price of anything is determined by supply and demand, and that's why house prices have gone up so much in the last few years. Property valuation is a matter of opinion.

Good luck.

A_Fool_&_His_Borrowed_Mon

Put some Laminate floor down & slop a bit of Magnolia paint on the walls. Should add 10k to the value then.

Bubble_Pricker

Hi nooners-princess. You bought a new built flat, probably at or near the top of the market. You agreed to pay the price at the time. You only have yourself to blame, so stop blaming others. You seem financially naive, because you assume that property always goes up and that a flat will fetch a higher price because it is "lovely". You bought the flat from a flipper. Have you ever wondered why the person you bought the flat from would have wanted to sell it, if it was so lovely? I can tell you why. He was a speculator, who banked on selling to a bigger fool. Seems like you ended up being the biggest fool.

Amitoocautious

A_Fool_&_His_Borrowed_Mon wrote: »

Put some Laminate floor down & slop a bit of Magnolia paint on the walls. Should add 10k to the value then.

LOL but some people think that's all it takes - scary really!

Jim_B_3

On the other hand, you've had a flat for three years at a cost of 8k; that's a bit over 220 pounds rent per month, which sounds pretty good.