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High-end, new-build flats in London.
Killerseven
Posts: 205 Forumite
One sector looks very vulnerable – high-end, new-build flats particularly in London. These have bubble and pop written all over them.
They’re marketed overseas – so are vulnerable to all sorts of factors beyond anyone’s control (the Russian ruble collapse being one example). Many of those that have already been bought are unoccupied (drive past the UK’s tallest residential building, the Vauxhall Tower, at night – barely a light is on) – which leads them vulnerable to a vacancy tax (Islington has already proposed this).
There are also just too many of them. Asking prices are already falling, yet locals will not be interested – for the kind of money currently being asked, they can often get a much nicer period property.
This is a bubble that probably won’t go pop until 2016, but I want to be the first to call it – so I’m calling it now.
They’re marketed overseas – so are vulnerable to all sorts of factors beyond anyone’s control (the Russian ruble collapse being one example). Many of those that have already been bought are unoccupied (drive past the UK’s tallest residential building, the Vauxhall Tower, at night – barely a light is on) – which leads them vulnerable to a vacancy tax (Islington has already proposed this).
There are also just too many of them. Asking prices are already falling, yet locals will not be interested – for the kind of money currently being asked, they can often get a much nicer period property.
This is a bubble that probably won’t go pop until 2016, but I want to be the first to call it – so I’m calling it now.
HTB = Help to Bubble.
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Comments
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What if you're wrong? What if it's US that's going under - and all those foreign countries are at the start of an up, up, up 100-200 years spurt?0
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Killerseven wrote: »This is a bubble that probably won’t go pop until 2016, but I want to be the first to call it – so I’m calling it now.
Well that's credible because I bet you've never called a bubble before.0 -
Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.
Who is going to buy them all?HTB = Help to Bubble.0 -
Have you considered that some of these might be owned by absent foreign owners who didn't buy them to live in but for an investment.0
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Killerseven wrote: »Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.
Who is going to buy them all?
how many are there?0 -
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Killerseven wrote: »One report says there are more being built now that any any time in living memory.
clearly rubbish as I've already explained
so how many are being built then?0 -
Killerseven wrote: »Exactly, there are so many so called 'luxury' flats being built on every bit of unused land all over London the numbers dont add up.
Who is going to buy them all?
I've thought this for the last 5 years. There seems to be an endless supply of dumb money into overpriced London property.Faith, hope, charity, these three; but the greatest of these is charity.0 -
For the year to the end of Q4 there were 13,870 dwellings started (being built by private enterprise) in the whole of London.
Doesn't seem that high a figure given the population.
https://www.gov.uk/government/organisations/department-for-communities-and-local-government0 -
For the year to the end of Q4 there were 13,870 dwellings started (being built by private enterprise) in the whole of London.
Doesn't seem that high a figure given the population.
https://www.gov.uk/government/organisations/department-for-communities-and-local-government
What you have missed is that nobody lives in London anymore, because it is far too crowded.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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