High-end, new-build flats in London.

padington

Thrugelmir wrote: »

An empty property that's incurring service charges and not generating revenue isn't much of an investment.

Properties are mainly kept like that when capital appreciation is so good, gathering rent on top feels like being greedy.

padington

the_flying_pig wrote: »

:rotfl:

you should become a full-time cheerleader for the inexorable rise of London house prices.

er, oh...

I should be getting paid for it too

Hmmmm ...

happylucky

Thrugelmir wrote: »

An empty property that's incurring service charges and not generating revenue isn't much of an investment.

In my area of interest London SE1 river end plenty is empty because building hasn't been finished. The Arc, one Tower Bridge are good examples...plenty of this is on the market for well over 6 months with price reductions of 10-15% off asking price not uncommon according to zoopla and right move. Still expensive. Mostly 700k+ price point.

Moving out to rotherhithe and up to Surrey quays and there's a lot more...completion dates out to 2016 and discounts kicking in all over the place. That's not even what I'd call the "luxury" market in any shape or form. Discounts on asking price available for all to see on the sales portals. Not to mention the serial relistings with wiped histories :rotfl:

With capital growth flatlining, the typical net rental yields are just not so attractive as, say, more flexible and lucrative investments, I guess.

It will be very interesting to see what happens over the coming months.

Killerseven

padington wrote: »

No it's like saying exactly what I said - just like if you widen roads in London or anywhere else heavily desirable, they attract more traffic and if you build sufficiently more houses, they will attract more people than your usual expected yearly arrivals.

It's like putting bird Feeders and bird boxes in a garden.

Thats rubbish, look at Chinas ghost cities. Im not saying London is the same Im just disagreeing with what you said.

The extra jobs have to be there. You cant just create an extra 100K jobs per year when we are facing the next global credit crisis.

padington

Killerseven wrote: »

Thats rubbish, look at Chinas ghost cities. Im not saying London is the same Im just disagreeing with what you said.

The extra jobs have to be there. You cant just create an extra 100K jobs per year when we are facing the next global credit crisis.

Name me one city in China which was terribly desirable at the time but still became a 'ghost'.

Bubble_and_Squeak

hahaha same old song and dance
of course its a construction bubble
how can a money saving expert not see that?
if the asking prices of new builds are being cut in some cases TWO YEARS before they're completed that means the current owner thinks the price will fall

happylucky

...or that they need to secure cash flow now in order to progress with construction...

tkane

I have posted this before but just this past October (i.e 2 months ago) Phase III of Battersea Power Station went on sale. There were about 570 flats that were made available in the London launch and the number of people that had booked sales appointments was.....13,000.

I too booked an appointment but despite registering on the first day of the exhibition was only given an appointment for the second day of release. They phoned me at 8am on the day of my appointment to say that all flats under £1million had sold and therefore I should not bother coming in as I had stated my budget was £500-700k.

Whilst I won't deny prices are being cut in certain parts of London....the cuts are frankly laughable as they are usually only £15-30k off flats marketed at £500k-1million. You are never going to go back to 2012 prices which such miniscule cuts.

Killerseven

Thrugelmir wrote: »

An empty property that's incurring service charges and not generating revenue isn't much of an investment.

So if they cant find tenants who can afford the rent they either have to lower the rent or find a buyer. If they cant find a buyer they have to lower the asking price...............and the downward spiral continues each desperate seller competing with each other.

chucknorris

Killerseven wrote: »

So if they cant find tenants who can afford the rent they either have to lower the rent or find a buyer. If they cant find a buyer they have to lower the asking price...............and the downward spiral continues each desperate seller competing with each other.

What makes you think that they will not be able to find tenants in London? I've been a landlord of London property for 24 years, holding an average of 4 properties (incl. my wife's) during that time, that equates to almost a 100 years history if expressed as holding one property. In all that time I have not experienced a rental void (except self induced to refurbish).