New build flats

Pobby

Just had a thought.You don`t need to be a property expert to hear a lot of news that new build flats are tanking in price.Where I live wages are pretty poor yet there are tons of new build flat developments in progress,some of which are not in the safest of areas.

The building seems to be taking forever.I saw one today,nasty looking development right at the end of a street which is full of pubs,kebab houses and nightclubs.It is downright dangerous at 2 am of a weekend morning because of all the yobs turning out.

The starting price was £165k for a one bedder!!!!

So with al this adverse publicity who in their right mind would buy one of these.That price would get you a very nice terrace house fully refurbed.Just get the feeling that a lot of developers are going to get very stuck with thier buildings.

Pobby

Yep.hearing stories of b-t-l wonder boys owning these places.The value has dropped in an alarming way and they are subsidising their tenants.

Jorgan_2

Last year I was asked to value part of a portfolio for a landlord, the guy had sold a business and property was 'easy money' (his words). He told me how he had negotiated really hard & the developer didn't know what had hit them. I valued his properties at £15-25k less than he paid for them. I asked him if had researched the area as he could have bought properties that were ten years old for a lot less, I was informed that 'you can't go wrong with newbuilds.' He recently went to auction with his entire portfolio, not one reached the reserve set.

Benefits_Blagger

Jorgan wrote: »

Last year I was asked to value part of a portfolio for a landlord, the guy had sold a business and property was 'easy money' (his words). He told me how he had negotiated really hard & the developer didn't know what had hit them. I valued his properties at £15-25k less than he paid for them. I asked him if had researched the area as he could have bought properties that were ten years old for a lot less, I was informed that 'you can't go wrong with newbuilds.' He recently went to auction with his entire portfolio, not one reached the reserve set.

any info on how much he paid and what bids he did get ?

Pobby

This is what I am picking up on.So how do the developers expecy to get these crazy prices.The rate that the developments are progressing it is going to be long time before they are completed.I think by then the cat will deffo be out of the bag.Goodness knows how much they will have to discount them to just get shot!

Benefits_Blagger

Pobby wrote: »

This is what I am picking up on.So how do the developers expecy to get these crazy prices.The rate that the developments are progressing it is going to be long time before they are completed.I think by then the cat will deffo be out of the bag.Goodness knows how much they will have to discount them to just get shot!

they will just pretend to sell at below market value like they did to the muppet in the story above, who sold up his business "to get into property"

Jorgan_2

Benefits_Blagger wrote: »

any info on how much he paid and what bids he did get ?

Paid: Far too much
Bids: Not enough

SouthCoast

There are a couple of new build up-market flat developments near me that were completed last spring and are not selling. The developers are refusing to reduce their prices.
The sales executive tried to persuade me to buy for BTL, but the figures did not stack up.

loveandlight

It's not just new build flats that are nose diving, it's the older ones as well. Far too many new build developments are now having a dramatic adverse affect on the valuations of older flats.

Confused_landord

I have 2 appartments in different areas, in listed buildings ,they are beautiful and very elegant ,, far from the prison block types that are thrown up,,they just dont do it for me and are just characterless builds,, if i hit hard times i would have no problem in living in one of my rentals,,i keep them well maintained and up to date,,and i hope my tennents appreciate it ,,which they do as nobody has only stayed for 6mths, they usually ask for longer ,,,,,i actually care that my tenents are comfortable , i think they know a nice property when they see one, infact they are not really empty for that long ,,nuff said,,,but yes i do agree with those horrible new build flats....AWFUL............

Air-Wolf_2

The increase in flatted developments was a direct result of high inflation within land prices - it was the only way that you could secure the land, fueled by 'ease' at which individuals could obtain credit (above their means) - and now we are seeing the ramifications!

Developers are desperately trying to offload their flatted developments to landlords - private and asocial ones - thing is most are declining their offers!!

I think what we are seeing is the market coming back to a sense of normality i.e. availability of mrtgages is to those that can afford it and land values are coming down from the vastly inflated 'aspirational' values that landowners believe their land is worth. We just need to be careful that the media don't spin it worse than it is!

I still think property is a long term investment though. Don't 'knee jerk' - if you can keep hold of it and eventually it will appreciate in value again.