Is buying a property with Pocket Living a good idea?

Cakeguts

ruelle wrote: »

I guess Pocket chooses good locations that most FTBs would struggle to get anything at full price. They had a recent development in Dalston which sold for £231k. There's no way you could get a 1 bed in that area that cheap otherwise.

This is the case for all of London there is always somewhere where someone cannot afford to buy a property but what people in this position do is to move to somewhere where they can afford to buy something. I just can't see why anyone would want to buy a small flat in somewhere like Dalston when they could move to another area and buy a bigger property for less than the PL ones and then not have the bother of the discount lack of parking, resale etc. I can't see any of these properties increasing in value at all once they are second hand. They are overpriced for what they are now. Once they become second hand they just become very small expensive flats in not very nice areas.

Prohorenkovs

ScorpiondeRooftrouser wrote: »

The salary limit seems to be 90K. Presumably per person, if there are two of you. Is that really a big restriction for first time buyers, even in London?

That salary limit, I believe, is for two people as well.

HappyMJ wrote: »

It looks more like social housing that's been privatised. £256,000 for a 38sqm 1 bedroom flat might be okay if you are young or intend to retire in the flat but would not be suitable if you ever wanted to plan a family. I can't see them selling particularly quickly. Although you would normally have 9 months notice that a baby is coming and I'm sure you could find a buyer within that time. Anyway a few months of having a baby in the same bedroom or living room shouldn't be too much of a hardship.

You got me thinking my flat £110,000 and 58sqm is around £1,900 sqm and that flat at £256,000 and 38sqm is around £6,750 sqm. It's only 3.5 times more expensive than my flat...but my flat's not in London fare zone 3.

These sell unbelievably quickly. Trust me, I tried to get one. But they sell to people living or working in the borough first, and then open it up to all of London if they don't sell. Of all the ones I've seen, the only flats where they've had to open it up to all of London were ones in Cricklewood (NW2). And when they did that, they sold quick.

Cakeguts wrote: »

Why do they need to have a discount? You can buy a flat in London for less than £256k in a much better area than any of the ones on the Pocket Living website. It makes me think that people who buy from PL are people who can't be bothered to look round to see what else there is. Basically lazy.

It seems to me to be a pointless exercise to offer very small flats in poor areas at a discount when there are full price bigger flats already being put onto the market?

Generally it's very good, but I have to say those Streatham ones seem a bit pricey. They had ones in Southall recently for £165,000. The Cricklewood ones I mentioned above were for £271,000, and that was for a location right next to Kilburn station. Streatham doesn't have an underground station anywhere near it.

I think it's better for areas closer to central London, where you can really see the price differences. The Brixton ones are £249,000, or something like that. For a one bed, albeit smaller than normal, it's good value.

These are all new builds too btw, not social housing converted. So keep in mind the new build premium.

ruelle

Prohorenkovs - you tried to get one? I'm so tempted to hold out for the Hackney one (where I live) but I reckon the demand will be huge and obviously no guarantee that I'll get it.

They have some new flats in Camden for £315,000 - that seems v pricey to me considering it's supposed to be affordable for FTBs. I wonder how much the Hackney ones will see for.

Cakeguts

https://www.pocketliving.com/buy/faq#faq-11 Compared to an open market property in a better area I can only see these PL properties as a disaster waiting to happen. New builds have a premium on them and you can only sell on one of these properties to someone that has been vetted by PL. You are also not allowed to rent them out. So if for any reason you can't live there you will either have to leave it empty or sell it. The areas that they are in are not premium areas. I expect that this is due to them being able to buy the land cheap enough. Anyone buying one of these risks a thumping great loss if they have to sell in a few years time especially since they are only cheap because they are small and there is a supposed 20% discount.

Prohorenkovs

Ruelle - yeh I tried the Cricklewood one, but I couldn't afford it.

Waiting is a bit of a risk (saw your other thread about the studio in Walthamstow). These do sell, and I've no doubt these Hackney ones will sell too. I'd love to know how they prioritise when they're oversubscribed - I've no doubt they'll be able to sell the Hackney ones twice over to people who fit the criteria, like you. Interested to know how they decide who to pick.

ScorpiondeRooftrouser

Cakeguts wrote: »

https://www.pocketliving.com/buy/faq#faq-11 Compared to an open market property in a better area I can only see these PL properties as a disaster waiting to happen. New builds have a premium on them and you can only sell on one of these properties to someone that has been vetted by PL. You are also not allowed to rent them out. So if for any reason you can't live there you will either have to leave it empty or sell it. The areas that they are in are not premium areas. I expect that this is due to them being able to buy the land cheap enough. Anyone buying one of these risks a thumping great loss if they have to sell in a few years time especially since they are only cheap because they are small and there is a supposed 20% discount.

You are allowed to rent them out. You have to explain your position though.

Prohorenkovs

Edit post not working on phone either :-/

My feeling is that these are aimed at couples tbh - people who can afford a mortgage on properties of £300,000 - rather than single buyers like you and me. Even help to buy, which they offer on some units, is out of my reach at these prices

HappyMJ

Prohorenkovs wrote: »

Edit post not working on phone either :-/

My feeling is that these are aimed at couples tbh - people who can afford a mortgage on properties of £300,000 - rather than single buyers like you and me. Even help to buy, which they offer on some units, is out of my reach at these prices

Couples past child bearing age maybe but I would not recommend these to a young couple who may find they lose money when they sell them on in a few years when they need to buy a 2 bedroom flat.

A lot of the time it's cheaper just to rent rather than buy especially in London where gross rental yields are very low.

Kinver17

I'm sceptical about the 20% "discount". I know of two people who had to pull out of purchase because their lender said the property was worth far less than the valuation Pocket used to justify the "discounted" asking price. They were left wondering how genuine the discount was. It's true that Pocket flats are more affordable than the average one-bed in the same neighbourhood, but they are also much smaller (only really suited to single people), come with strings attached and are often on the edge of council estates, all of which pushes down the value on the open market.

sniggings

Cakeguts wrote: »

http://www.rightmove.co.uk/property-for-sale/property-36027759.html Why do they need to have a discount? You can buy a flat in London for less than £256k in a much better area than any of the ones on the Pocket Living website. It makes me think that people who buy from PL are people who can't be bothered to look round to see what else there is. Basically lazy.

It seems to me to be a pointless exercise to offer very small flats in poor areas at a discount when there are full price bigger flats already being put onto the market?

Tend to agree, as the 1 flat I viewed on their site, had ALL the blinds down, I expect because their selling point of providing "big windows" look out on "big walls".