Price of nearly new appartments (Chester)

eaustin

There has been a large number of appartment developments in the city of Chester over the last few years. I am interested in purchasing one but am having difficulty in trying to work out a 'true' value. There seems to be a glut of appartments in the city and more developments in progress so I don't want to overpay.

Is there a genral 'rule of thumb' for the amount a new flat looses? We know new cars loose an amount of value when you drive it off the forecourt is is something similar with new appartments?

Any thoughts / suggestions welcomed.

Edward

headcoat

Personaly, I think they have overdeveloped and the flats always look empty there.

dmg24

It really varies from area to area, and even from development to development.

Sounds like headcoat has local knowledge, which I think is the key thing in such a discussion x

Doozergirl

I wouldn't buy a new build flat in the centre of a city at all. Not even second hand. They have been so vastly overpriced that they have a long way to fall. Since when does it make sense that a two bed flat costs the same or more than a two bed house?

Tread very carefully.

dmg24

Doozergirl wrote: »

I wouldn't buy a new build flat in the centre of a city at all. Not even second hand. They have been so vastly overpriced that they have a long way to fall. Since when does it make sense that a two bed flat costs the same or more than a two bed house?

Tread very carefully.

Maybe if the flat is bigger than an equivalent house?

Doozergirl

They generally aren't dmg24. The starting prices tend to be more in line with larger properties.

Developers are struggling to sell city centre living now. There simply isn't the demand. And if house prices really are based on supply and demand, then more supply than demand only sends prices in one direction. A case being proved up and down the country. Not just on the first resale, but on subsequent ones.

Flats are not, generally speaking, long term homes for people and so it's very difficult to ride out a fall - you have to take the financial hit if you want to move. We have had several people who own flats that aren't worth what they paid, and at least two people I can remember had babies on the way.

I am speaking generally about new build apartments, but it everywhere I look. My town, the next town, the two nearest cities to me, the Northern town I am looking to buy in, the places we've been shown here that aren't selling. Some marginally overpriced, some embarrassingly so.

If the OP can afford a two bed terrace then that would be my choice every day of the week. Versatile accommodation with proportionately high demand.

lynzpower

dmg24 wrote: »

Maybe if the flat is bigger than an equivalent house?

erm you do have to be joking- right!!?? what rot!!

1) flats are very seldom freehold. Any freehold is OBVIOUSLY worth more than a leasehold :wall:

2) most flat dont have gardens. Most houses ( rule of thumb) at least have a yard. therefore most people would expect to pay more for a house than a flat.

3) most flats have leases with clauses in such as no pets/ no satelite dishes/ no musical instruments/ no political posters AND SO ON. Ie your rights as to what you can and cannot do in your own home are restricted. Pretty unusual to have your rights restricted in this way in a house. therefore one would expect to pay less for a flat than a house.

4) flats sometimes have restrictions on parking- which again you seldom have in contractual terms on a house.

5) flats a general rule tend not to have room for extensions/ conservatories/ annexe in the garden- where as many houses do. Again, expect to pay less for this.

So even if the sqaure footage was the same ( which lets face it they seldom are for the same price!!) the value of the house ( if its in the same street- lets keep it equal) is always going to be more.

dmg24

I am speaking generally about new build apartments, but it everywhere I look. My town, the next town, the two nearest cities to me, the Northern town I am looking to buy in, the places we've been shown here that aren't selling. Some marginally overpriced, some embarrassingly so.

Exactly, you are speaking in general terms.

Often apartments are small, sometimes houses are too. Some people choose to live in apartments as a short term measure, many people see them as a long term home.

A two bed terrace really would not be some people's choice of accommodation, I know it would not be for me.

As I said, it is down to the individual location and development, and the preferences of the buyer. What works for one person, does not for others.

lynzpower

OK
well heres a general way of looking at it.

1) check smart new homes. I just found this at 260
http://www.smartnewhomes.com/property/Details/1765059/Brand_New_Morris_Homes_Ltd_(Developments)-Apartment-Apartment_1_-_Westminster_Gardens_WESTMINSTER_GARDENS_Chester_Cheshire_.aspx

Check rightmove

this is a similar one in style - older NB - priced at offers over 130.
http://www.rightmove.co.uk/viewdetails-14632874.rsp?pa_n=3&tr_t=buy

Looks like a back-of-fag packet calculation would say the Smart new home which-was- is now worth 130k less.

Not exactly scientific, but an idea none the less.

eaustin

Thanks for the responses. Before this discussion goes too much off topic, what I was really asking for was an estimated 'loss' of value for new appartments before they start appreciating again or in other words the 'premium' that buyers might pay for buying a brand new appartment.

Again, thanks to everyone who as contributed so far.

dmg24

So even if the sqaure footage was the same ( which lets face it they seldom are for the same price!!) the value of the house ( if its in the same street- lets keep it equal) is always going to be more.

My two bed apartment, with two large bedrooms and a communal garden = £125K (I have had someone put a note through the door offering me that amount - I am not selling).

The two bed house on the same street, with one double bedroom and one single, no garden = £114K.

My friend's two bedroom house down the road (different development, few years older) is tiny. It has been on the market for six months for £105K, she cannot sell it.

Location and development. There are always exceptions to a rule. I am sure that the OP has the brains to realise that not all apartments are the same, and that there are no hard and fast rules in property.