Assessing resale difficulty

Ybe

ReadingTim said:

Flats in that block seem to have had between 3 and 6 owners in the near 30 years since it was built, suggesting people quite like living there rather than any kind of difficulty selling up.  

Furthermore, you're not a beautiful unique snowflake - there are plenty of others in London in exactly the same position as you're in, so if it's of interest to you, it'll be of interest to them too.  And that's just as true when you come to sell it as it is when you're buying it.  

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

freesha

You're interested aren't you? So why wouldn't others be?

ReadingTim

Ybe said:
 

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

Enough with the desktop analysis and "red flags" already - get out, view the place and ask yourself if you want to live there and would buy the place.  If yes, then chances are that other people will think the same thing. 

It really is no more complicated than that.  

Newbie_John

Ybe said:

Newbie_John said:

Here is the same or similar flat history:
https://www.rightmove.co.uk/house-prices/details/england-123255299-15927805?s=6c89e0eb2bbce74cdfecd4c213a85dd908070870e7cffb785733e82a7dd2aae1#/

Maybe not difficult to resell, but adding all the sale fees it won't gain much value - so you're looking to get back what you paid after 5 years.

Interesting. Do you think it’s reached its limit of appreciation? 

I think also flat 20 is much larger looking at the EPC certificates. Flat 20 is 68 sq m whereas this one is 52 sq m. 

Hard to tell, there's definitely a limit somewhere. Where I live SE zone 6 for the past 8 years all the 1 bed flats cost around the same £190-£210, the price is static. 
£400k - a person needs £80k salary. It's one bed so no families, maybe a couple.

Now with high mortgages %, cost of living crisis, stagnated economy - I don't really see it gaining much value.

First time buyer stamp duty threshold is also going down from £425k to £300k in April 2025.. 

ReadySteadyPop

Bigphil1474 said:

It was sold in 2014 for £332k, so current price seems a bit low, maybe a reason for that? Current occupier has been there 11 years. Not sure you need to worry about the ground rent - if it went up in 2019 it's not due to go up until 2044, to a massive £420pa, and it's currently only at £23 a month? 

Bottom line - if you are interested in it, why wouldn't someone else be when you come to sell. Can't comment on price as I don't know London that well. Given where I live you could get a 4 bed detached for that money, it wouldn't interest me in the slightest.

Interest rates were at near zero back then, I can`t see it being worth more than that now?

ReadySteadyPop

ReadingTim said:

Ybe said:
 

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

Enough with the desktop analysis and "red flags" already - get out, view the place and ask yourself if you want to live there and would buy the place.  If yes, then chances are that other people will think the same thing. 

It really is no more complicated than that.  

It is, "wanting" to live somewhere, and "liking" somewhere is different to being able to afford somewhere or being prepared to pay asking price for somewhere, I think this flat is a loss waiting to happen.

Ybe

ReadySteadyPop said:

ReadingTim said:

Ybe said:
 

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

Enough with the desktop analysis and "red flags" already - get out, view the place and ask yourself if you want to live there and would buy the place.  If yes, then chances are that other people will think the same thing. 

It really is no more complicated than that.  

It is, "wanting" to live somewhere, and "liking" somewhere is different to being able to afford somewhere or being prepared to pay asking price for somewhere, I think this flat is a loss waiting to happen.

Interesting. What makes you think that? 

ReadySteadyPop

ReadingTim said:

Flats in that block seem to have had between 3 and 6 owners in the near 30 years since it was built, suggesting people quite like living there rather than any kind of difficulty selling up.  

Furthermore, you're not a beautiful unique snowflake - there are plenty of others in London in exactly the same position as you're in, so if it's of interest to you, it'll be of interest to them too.  And that's just as true when you come to sell it as it is when you're buying it.  

Not really true, buyer affordability at the time you sell it is key, trying to sell now for example will be much more difficult than when interest rates were at near zero.

ReadySteadyPop

Ybe said:

ReadySteadyPop said:

ReadingTim said:

Ybe said:
 

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

Enough with the desktop analysis and "red flags" already - get out, view the place and ask yourself if you want to live there and would buy the place.  If yes, then chances are that other people will think the same thing. 

It really is no more complicated than that.  

It is, "wanting" to live somewhere, and "liking" somewhere is different to being able to afford somewhere or being prepared to pay asking price for somewhere, I think this flat is a loss waiting to happen.

Interesting. What makes you think that? 

Interest rates, there is a potential for them to go higher, and the UK could end up in "Stagflation" meaning that people won`t be splashing large amounts of debt on very average small flats in random parts of London, that was a feature of the cheap debt era, now over thankfully.

Herzlos

Ybe said:

ReadySteadyPop said:

ReadingTim said:

Ybe said:
 

True. What turnover rate would be more of a red flag to you?  I’ve noticed some new builds especially seem to always be on sale. 

Enough with the desktop analysis and "red flags" already - get out, view the place and ask yourself if you want to live there and would buy the place.  If yes, then chances are that other people will think the same thing. 

It really is no more complicated than that.  

It is, "wanting" to live somewhere, and "liking" somewhere is different to being able to afford somewhere or being prepared to pay asking price for somewhere, I think this flat is a loss waiting to happen.

Interesting. What makes you think that? 

Because for the last 21 years he's been absolutely adamant that a huge price adjustment is right on the horizon. Thus any property bought now will lose money.

Maybe one day he'll be right, but it's not today.