New build flats

RHemmings

Pobby wrote: »

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.

I don't think "people in their right mind" are the target market for these flats. Remember that when P. T. Barnum said "there's one born every minute", he was speaking at a time when the population was far lower than it is now. If we assume that the proportion of fools in the population has remained constant (a safe bet I would wager), then today there's one born about every twelve seconds or so.

Lotus-eater

I've said on here before, people have short memories, most of the population seem to be uniformed and just follow the daily express/homes under the hammer etc blindly.
I know one young man that has just bought a new build flat. his dad helped him and is very proud he has got on the ladder. Now his dads not stupid, far from it, yet he still has no idea of new build flats having problems.
Someone has got to buy these new developments, who is it going to be? BTL landlords who will get them at rock bottom prices?

Guy_Montag

One lender is limiting to 65% LTV on BTL on new builds now, I think that says a lot.

jamescredmond

Air-Wolf wrote: »

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.

agreed. long term should be the objective.

and I get a bit bored with people buying with a 'profit view' rather than looking at property as a home, sittng back and looking forward to a mortgage-free and secure retirement.

RHemmings

Guy_Montag wrote: »

One lender is limiting to 65% LTV on BTL on new builds now, I think that says a lot.

65%!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!?!? OMG!!

If other lenders follow suit, that's the end of the BTL boom right there.

SouthCoast

BTL boom

Bust always follows Boom.

Air-Wolf_2

SouthCoast wrote: »

Bust always follows Boom.

And if you can keep your nerve and somehow financially manage it - your in a win win situation when the boom comes round again!

Pobby

SouthCoast wrote: »

Bust always follows Boom.

No that`s not right!Gordie said he had put an end to bust and boom!

granville_2

Pobby wrote: »

No that`s not right!Gordie said he had put an end to bust and boom!

no, more boom & bust...

Jonesya

Air-Wolf wrote: »

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.

Yeah but that doesn't necessarily make it a good investment though because of inflation, by the time those new build flats have recovered to their original 'nominal' value their real value will have fallen. You'll get your money back but in real terms you'll have made a loss.