Assessing resale difficulty

Ybe

Herzlos said:

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.

Interesting. So what’s your view? 

ReadySteadyPop

Ybe said:

Herzlos said:

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.

So what’s your view? 

Good question, the problem with asking on a forum is that you will get various answers that suit the poster`s bias, you need to DYOR, my view is that flats like this went up in price mainly due to the availability of cheap mortgage debt when people were not really thinking about "re-sale value", they just assumed it was going up, and will correct in price as debt costs go back to more normal levels, if you are using cash to invest I would say keep it away from property and look at money market funds, savings accounts, stock market trackers maybe, even premium bonds would be a better bet than an uncertain re-sale value flat.

Newbie_John

Sure, but it raises a basic question why are you planning to buy?
Investment - I'd say not worth it, there is a high chance you will sell it for what you've paid.
Perfect place to live - matches all the boxes, easy commute, maybe even walking distance? I can imagine renting such place would be around £1500 with mortgage quite comparable. Rent - all money gone (although interest on deposit remains). Mortgage? You will still "save" half of it, one half goes towards interests and one towards balance - and that part will be regained when you sell it. 
Margin quite small when you take into consideration selling fees, higher stamp duty for next place, "wear and tear" etc. but if you're planning to live for longer like 10 years then it does make sense financially in many ways.

But as previous poster said, this is just my opinion, and it could be either way, you could sell it for anything between 300-500 in the next 10 years.

ReadySteadyPop

Newbie_John said:

Sure, but it raises a basic question why are you planning to buy?
Investment - I'd say not worth it, there is a high chance you will sell it for what you've paid.
Perfect place to live - matches all the boxes, easy commute, maybe even walking distance? I can imagine renting such place would be around £1500 with mortgage quite comparable. Rent - all money gone (although interest on deposit remains). Mortgage? You will still "save" half of it, one half goes towards interests and one towards balance - and that part will be regained when you sell it. 
Margin quite small when you take into consideration selling fees, higher stamp duty for next place, "wear and tear" etc. but if you're planning to live for longer like 10 years then it does make sense financially in many ways.

But as previous poster said, this is just my opinion, and it could be either way, you could sell it for anything between 300-500 in the next 10 years.

Landlord selling so unlikely that is sustainable rent without lots of voids, a mortgage isn`t "saving" it is a debt that has to be paid back, and not guaranteed you won`t lose money after interest as this flat is trying to sell at 2014 price.

ReadySteadyPop

Sorry, it is asking 70k more than 2014 price.

Herzlos

Ybe said:

Herzlos said:

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.

Interesting. So what’s your view? 

As a prospective landlord? I'm not sure it'd be worth it given the fees to buy and then the tax you'll pay on the rental income. It's value will invariably go up in the long term (>10 years) but may not grow enough in the short term (<5 years) to cover your expenses. In terms if ROI I'd probably try and buy 2 flats at £200k each than one at £400k.

As a resident it's more viable to buy/rent, it's a nice flat, but I don't know London well enough to comment.

Ybe

Herzlos said:

Ybe said:

Herzlos said:

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.

Interesting. So what’s your view? 

As a prospective landlord? I'm not sure it'd be worth it given the fees to buy and then the tax you'll pay on the rental income. It's value will invariably go up in the long term (>10 years) but may not grow enough in the short term (<5 years) to cover your expenses. In terms if ROI I'd probably try and buy 2 flats at £200k each than one at £400k.

As a resident it's more viable to buy/rent, it's a nice flat, but I don't know London well enough to comment.

So would you say this property is like buying a new build in terms of same risk it might depreciate or flat line for the first 5-10 years? 

Ybe

I like the flat but my main concern is I’m asking myself what I get for the larger cost of this flat. The same area has much cheaper 1 beds and even 2 beds which are close to the price of this one. 

GDB2222

Ybe said:

I like the flat but my main concern is I’m asking myself what I get for the larger cost of this flat. The same area has much cheaper 1 beds and even 2 beds which are close to the price of this one. 

I’m not surprised that you can find bigger flats for the money. It’s quite pricey on a per square foot basis. 

You have to factor in that it’s conveniently located, close to the station and not too far from the shops, whilst being in a pleasant spot, with some good parks nearby. You do pay extra for that. The block itself looks nice:  well maintained, with a pleasant garden. 

Ybe

GDB2222 said:

Ybe said:

I like the flat but my main concern is I’m asking myself what I get for the larger cost of this flat. The same area has much cheaper 1 beds and even 2 beds which are close to the price of this one. 

I’m not surprised that you can find bigger flats for the money. It’s quite pricey on a per square foot basis. 

You have to factor in that it’s conveniently located, close to the station and not too far from the shops, whilst being in a pleasant spot, with some good parks nearby. You do pay extra for that. The block itself looks nice:  well maintained, with a pleasant garden. 

As an example this one - https://www.rightmove.co.uk/properties/155678693