Can't sell flat!

GDB2222

Crashy_Time wrote: »

Brexit effect, or something far bigger?

Who knows? There's been a definite downturn in London property. That seems to have started at the top end and worked it's way down.

Bear in mind that stamp duty on a £1m property, by no means unusual in London, is over 4%. For buyers who have a BTL or country cottage, that goes up to 7%.

On a £2m property it's over 10%.

That puts people off selling and moving somewhere only a bit better.

Slinky

I couldn't live with the wierd room shapes personally.

Crashy_Time

GDB2222 wrote: »

Who knows? There's been a definite downturn in London property. That seems to have started at the top end and worked it's way down.

Bear in mind that stamp duty on a £1m property, by no means unusual in London, is over 4%. For buyers who have a BTL or country cottage, that goes up to 7%.

On a £2m property it's over 10%.

That puts people off selling and moving somewhere only a bit better.

Just the government trying to milk the tail-end of a massive credit bubble, this will back-fire as the market seizes up IMO. Expect more and easier to collect property taxes IMO.

Rosieandjim

Slinky wrote: »

I couldn't live with the wierd room shapes personally.

Agree totally

Crashy_Time

General London effect?

https://www.estateagenttoday.co.uk/breaking-news/2019/4/some-london-houses-25-below-peak-as-transactions-plummet--new-index

Out,_Vile_Jelly

Tiny leasehold flats in identikit blocks are the first to look overpriced.



Decent sized family homes with gardens and parking in nice areas should hold their value. Because this is where normal people want to live.

Crashy_Time

Out,_Vile_Jelly wrote: »

Tiny leasehold flats in identikit blocks are the first to look overpriced.



Decent sized family homes with gardens and parking in nice areas should hold their value. Because this is where normal people want to live.

Yes, they might hold their value, but in many cases their "value" is nowhere near their asking price hence the number of folks struggling to sell at the moment.

davemorton

Would not touch your company with a barge pole if this is how you have to advertise.

Edit: ignore, spam deleted.

SouthLondonUser

Stamp duty in this price range is about £1k, so not that much.

The way I see it, though, is that this is an oddly-shaped (was it designed by a toddler on drugs?) shoebox-sized flat in a part of South East London not everyone is keen on. Inner London yes, but central London it is not - you had better rectify your perception and expectations.

Right or wrong, the areas south of the river tend to be worth less, and SE tends to be worth less than SW.

You may argue that all of this is priced in, but the problem is: who is the target buyer for this? It's too small even for a couple, let alone a couple with children. This would only really appeal to:

• a single person,
• who doesn't seem him/herself settling down anytime soon,
• who can afford to put down a deposit to buy a property,
• , and who values the area (eg proximity to Canary Wharf) so much more than the inconvenience of the odd shapes, that he/she would prefer this flat to a more decent flat farther away

Everyone is different, but, if I were a single person with no intention of settling down etc etc., the odd shape would put me off big time. The one and only way I might MAYBE consider this flat is if it were substantially cheaper than flats of similar size but with a more regular shape.

I'd think of this flat the same way I'd think of properties overlooking a railway track, or a very busy and noisy road, or a flat above a shop: I might consider these properties ONLY at substantial discounts vs properties that do not have these issues and, even then, I'd be skeptical, because these properties are always harder to sell. And, when the real estate market stagnates like it is doing now, these properties suffer MUCH more.

What feedback are you getting? What has the agent been telling you? Who is coming to view the property? Young single people, middle-aged divorced people, couples...?

Back-of-the-envelope calculation: it seems you paid £186k in 2009 for it. Selling it at £250k would mean the property appreciated by 5% a year between 2009 and 2015, then stayed flat after that, or that it appreciated by ca. 3% till now. Considering that most London properties are actually worth much less now than in 2015, you should count yourself lucky if you manage to sell at £250k. I don't think I would ever buy it at that price.

I know this is not what you want to hear, but I also think hearing unwelcome feedback is sadly necessary.

GDB2222

SouthLondonUser wrote: »

Stamp duty in this price range is about £1k, so not that much.

Stamp duty is of course more of an issue with pricier properties, as you say, but there's presumably some filtering down. In addition, about half of central London property transactions were BTL, and for those the extra 3% SDLT makes a real difference - an extra £10k on this flat.

Round where I live, which is further out, Stamp Duty is a major factor in bringing prices down by 15-20%.