New build flats

Air-Wolf_2

nelly wrote: »

What?

the?

fcuk?

keep your nerve and somehow financially manage it

How about dont own something that you need to keep your nerve on?
how about not somehow financially manage it?

As it is today your money is earning far more in even the most bog standard bank acount than it is in properdee

People who are strung out on mortgage payments are sick of people like you mate

people who bought off plan and have lost loads and rented nothing out are sick of people like you mate

the property game has ended for many many years to come

everything has its day and it'll be ten or fifteen years before anyone makes money out of houses again............. maybe more

My comment was more aimed at the long term landlord who had bought with the longerterm in mind.

Those who bought becuse they believed they could make fast money will be dissapointed in the donw turn in the market and I guess if you've orroewd more than you can afford to repay and you didn't take account of a rise in terest rates and void periods where the property wasn't let then you need to cut your losses and sell if you can o really drop your rent/ incentivise your property to at least have some income.

In no way was I having a go at homeowners who are ow finding it a struggle with their mortgage payments.

'Sick of people like me' - wow, you know a lot about me then 'mate'. I hope some of the 20,000 + people that live in the homes the company I work for think that I'm doing some good each day that I negotiate on land deals and off the shelf purchses with volume house builders to provide more affordable accomodation.

Air-Wolf_2

poppy10 wrote: »

Rick62 wrote: »

secondtoughest wrote: »

Many of these 'thrown up' new build flats will become the housing association flats of the future, IMO. The price will drop so low that the councils will pick them up.


This is actually true, there was an article in one of my local papers recently stating that the council would not be buying up long-vacant "luxury apartments" because of the shoddy construction and lack of compliance with basic regulations for council housing.

To be honest they only have to meet certain sepficiatons when there is grant funding being used to purchse them.

We can and have bought off the shelf where they don't meet this criteria. The reason we're not doing so at the moment is becuse like eveyone else we don't think they are a good buy. We can't sell them on a shared ownership basis and the developers want too much for them to enable us to offer them at affordable rent.

Jorgan_2

Vincenzo wrote: »

Jorgan - what is you take on the issue of how these properties were overvalued in the first place?

Sure new builds generally have a 'premium' in built, until recently justified by the rising market. But my issue with many of these properties is that the developers have gone out of their way to deceive the mortgage lenders AND the valuers by offering incentives. The price paid, may be £280k for example, but with SDLT paid, deposit paid, solitiors fees paid, survey costs met, furniture packages etc etc actually the 'real' price paid for the property may only be £250k.

Jorgan, I trust you will know what I mean when I refer to 'headline rents'. Same thing, if you ask me.

Anyway, so when valuers check the sold prices with land registry or local agents etc....guess what.....£280k.......and so on......

I dont think the main problem is that these properties are falling in value. I think they were never worth the price paid in the first place. I have been telling my friends and family this for years and thankfully none of them got caught in the trap. As for the arm-chair buy-to-letters, well the figures clearly did not stack up and if they had to buy before they realised then more fool them.

Also - why has it taken so long for people to realise that the developers offer rental guarantees because there are not enough tenants to fill the developments??? This 'free money' is included in the price they pay for the property! And it all gets rather messy when the rental guarantees come to an end at the same time! A multitude of Landlords scrounging for tenants to try and pay a proportion of the mortgage interest - not pretty. These were never investments. They were a cleverly packaged rip off.

You appear to have the same reasoning as myself. The new build apartments/properties were never worth that amount in the first place. The developers were/are very skillful in the marketing ploys they used with rental guarantees, gifted deposits etc. They made it easy for people to jump on the bandwagon & profit from property, well thats what they said.

Five years ago I was offered a job, opening a new branch for a firm of estate agents. The office would be dealing only with apartments in a regeneration area. Two thousand apartments were built or planned to be built. Everything looked good until I asked how many of the properties had been sold to the BTL market, the answer shocked me, 100% sold to BTL'ers. I asked where the tenants were coming from, how could the market sustain all this new build? I'm very pleased I turned the job down.

lynzpower

Five years ago I was offered a job, opening a new branch for a firm of estate agents. The office would be dealing only with apartments in a regeneration area. Two thousand apartments were built or planned to be built. Everything looked good until I asked how many of the properties had been sold to the BTL market, the answer shocked me, 100% sold to BTL'ers. I asked where the tenants were coming from, how could the market sustain all this new build? I'm very pleased I turned the job down.

Wow and this was 5 years ago in 03, a wise question to ask to be honest, as the market wasnt even really *worried* about BTL then.

Out of interest Jorgan, in which part of the country was the job you went for. In london 100% of BTL offplanning probably wouldnt raise an eyebrow. but in county durham ( say) I suppose it would??

Jorgan_2

lynzpower wrote: »

In london 100% of BTL offplanning probably wouldnt raise an eyebrow. but in county durham ( say) I suppose it would??

I would think any area with 100% BTL should raise an eyebrow. Where are the tenants coming from to fill all the properties? Potentially the only way you could make a property to stand out from all the others would be to make it cheaper than the competition. You then start a nasty spiral as landlords undercut each other to attract tenants.

loveandlight

Posted by Jorgan
Where are the tenants coming from to fill all the properties? Potentially the only way you could make a property to stand out from all the others would be to make it cheaper than the competition. You then start a nasty spiral as landlords undercut each other to attract tenants.

Exactly, which is what I posted more or less earlier on in this thread, except that it's also having a knock on adverse effect on the older flats now as well, that would otherwise have held their value and rent.