Price of nearly new appartments (Chester)

eaustin

Doozergirl wrote: »

From http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=421346&in_page_id=56

"The lack of value in new flats is even more starkly illustrated by comparing house price rises since 2000. Land Registry figures show the average cost of all property rose by 89.5% between December 2000 and December 2006, but the average cost of new-build flats rose by just 5.3%."

I don't spend my time here telling people not to buy. I believe that people need homes and that as long as you go in with your head screwed on, within a sensible budget and are in it for the long term, then you will get through. But city-centre living has been kept afloat by investors really and I cannot think of a worse property purchase for anyone. Of course, it makes no difference to me whether someone buys into or not.ree with L

EDIT: I agree with Lynzpower, if it suits your lifestyle then when not rent in that part of town? It's positively bargainous compared to the mortgage repayments or the interest you'd get with the money in the bank. Choice I bet is good. And if your lifestyle changes, you can buy a nice house a bit further out of town.

Thanks that link was very useful. Is there a way of accesing that data on a regional or even local basis?
Given our financial circumstances I still believe our mortgage payments would be less than any rent charges assuming there was one available to rent. And my simple understanding of market principles is that it would be very risky to be 'out of the market'.

eaustin

ashm1 wrote: »

Why buy if there is a 'glut of appartments'?

To live there. We not looking for an investment per se but neither do I want to throw my 'capital' away in case I need it later in life!

lynzpower

Given our financial circumstances I still believe our mortgage payments would be less than any rent charges assuming there was one available to rent. And my simple understanding of market principles is that it would be very risky to be 'out of the market'.

Well hardly, if your money is in a depreciating resource!!!

Doozergirl

eaustin wrote: »

Given our financial circumstances I still believe our mortgage payments would be less than any rent charges assuming there was one available to rent..

Even if there is a small mortgage, the equity will be earning 6.something% before tax in the bank. Mortgage interest is likely to be around 6% too. Rental yields I bet are down around 4%. You will be up on the deal in a simple like-for-like scenario.

eaustin wrote: »

And my simple understanding of market principles is that it would be very risky to be 'out of the market'.

That is probably why you are even considering an apartment

How long do you anticipate living the 'city lifestyle'? Prices have gone nowhere or down for years. Supply is increasing further! Would you really rather be 'in the marketplace' if prices are falling? At the moment only b
ecause they were vastly overinflated in the first place.

My advice would be to rent in that part of town if that is where you really want to be, or buy in an established area, that supports a wider community with plenty of different house types; get yourself a tidy little house, a taxi home from nights out in town and be happy there for a good few years to come. And if a family is on the cards at some point, then try to get space to accommodate at least one rugrat

I with that shall get off my soapbox! :A

real1314

round my way they built some "city living" style flats, about 4-5 miles north of mcr, 2 beds for £130k. I had a look out of idle curiosity and was offerered 5% discount without any effort, but they did show me estimates showing that local agenst reckoned £650 a month rental could be obtained.

I though that was a bit odd as 2 bed terraced were going for £400-450 and it made me wonder why someone would pay an extra 2400 pa to have neighbours above and below them as well as at each side, and to have restricted parking, no outdoor space etc.

The same agents are now advertising them for £550 a month.

So, if you compare the original value (less 5%) / rental price with the latter rental price, you get a value of £101,500.

Makes you think.

Rover

Arr, the archetypal 'exectutive apartment'. Currently regarded as the white elephant of the near future.

gallygirl

real1314 wrote: »

round my way they built some "city living" style flats, about 4-5 miles north of mcr, 2 beds for £130k. I had a look out of idle curiosity and was offerered 5% discount without any effort, but they did show me estimates showing that local agenst reckoned £650 a month rental could be obtained.

I though that was a bit odd as 2 bed terraced were going for £400-450 and it made me wonder why someone would pay an extra 2400 pa to have neighbours above and below them as well as at each side, and to have restricted parking, no outdoor space etc.

The same agents are now advertising them for £550 a month.

So, if you compare the original value (less 5%) / rental price with the latter rental price, you get a value of £101,500.

Makes you think.

Real, this shows how important doing your own research is. Before buying my BTL's (apart from 1 where I already had a tenant) I put an ad in the paper at the rent I thought was realistic. I got between 3 and 15 answers each time, so knew I was in the right area & price. People who believe everything they're told.... well, TBH it makes me wonder how they've managed to amass a deposit without getting stitched up along the way .

Personally speaking I wouldn't touch an apartment with a bargepole at the moment, even if it was to live in. Blocks round here are 1/2 empty or getting let out to 'all sorts' by desperate landlords.

eaustin

Some very interesting (and strong!) opinions... I think i'm more confused than I ever was. I was trying to find a way of assessing a fair value and I get told every reason why not to live in a city centre appartment - not sure I'd bargained for that. The thing is we like the flat, the area, it's much bigger that a 'standard' flat and we're considering it as home, not an investment. But being a 'conservative' type of person I don't want to end up with a whire elephant, hence my concern about the (over) valuation of city centre appartments. I think the one thing where there is concensus of opinion is that they are and have been severely over valued. Now I have to think what offer we might put in or in fact whether to put in an offer at all, but we really like it...

Doozergirl

I'm assuming you know what it's on for Have you checked how much they paid for it?

eaustin

Doozergirl wrote: »

I'm assuming you know what it's on for Have you checked how much they paid for it?

Yes, I know what they're asking and I've also looked at what the other appartments on the same level have sold for. Unfortunately, only one has has been sold 'second-hand' which was why I was originally trying to assess what the premium for new flats might be. I have looked at other city centre developments and it's difficul to establish a consistent trend.