Flat lost 70% in 2 years (now includes margin call link in post #40)

PasturesNew

This article's got some other figures too:
http://www.dailymail.co.uk/news/article-1028492/Recession-UK-The-238-000-flat-lost-70-value-years.html

Including:

Research by the Essential Information Group and the auctioneers Allsop reveals the extent of the meltdown in new-build flat prices.

The study looked at new-build flats sold at auction between January 2005 and February 2008.

It found that the value of the average new-build flat had plunged by 26 per cent.

Only 20 of the 535 flats sold at auction, which are typically ‘distressed sales’ such as repossessions, were sold for a profit.

Mr Sandeman said the situation is likely to have got even worse since February.

Since then, prices have continued falling and the availability and cost of mortgages, particularly buy-to-let mortgages, has got much worse.

One of the problems is the enormous number of flats which have been built in recent years.

Flats or maisonettes made up around 50 per cent of new property ‘starts’ last year, according to the National House Building Council.

A decade ago, they accounted for less than 17 per cent.

iyiarz

To be honest, i'm not reading much into this article. You would be a fool or desperate to sell a property at that much of a loss. I'd have thought a large investor with many properties could stomach a large loss such as this.

You would be better keeping it and letting the market recover a bit before selling, even if it was still at a slight loss.

Scaremongering media at its best.

I also note the other article about prices in London falling faster than anywhere else... Well yeah! The prices in London are stupid. You could buy betwwen 2-8 houses elsewhere for the same money...

PasturesNew

iyiarz wrote: »

To be honest, i'm not reading much into this article. You would be a fool or desperate to sell a property at that much of a loss. I'd have thought a large investor with many properties could stomach a large loss such as this.

If you're repossessed you don't get to choose.

A large investor, having built their portfolio from advice and techniques they learnt at property investor clubs, will have no way to raise any additional funds. The higher the stack of cards, the more dramatic the fall.

iyiarz wrote: »

You would be better keeping it and letting the market recover a bit before selling, even if it was still at a slight loss.

Not if you can't afford the repayments at all.

iyiarz

If you're repossessed you don't get to choose

Not if you can't afford the repayments at all.

Granted, yes. If you are unable to rent (although rentals are going up) or get repo'd then your up the swanny.

Things are looking up in my circle. I've found a buyer for my house and so has a friend of mine. People are buying, at the right price at the minute.

mitchaa

Anyone thats paid £150k+ for a flat deserves to be shafted for sheer stupidity unless its in the nicest parts of London.

£240k for a flat in Leeds...:rotfl:

PasturesNew

It seems to me that new builds were going up all over the country at the same prices. Gone seemed to be the days of regional variations.

If it was new, the price was stupid.

They no longer bore any relation to the local incomes or anything at all. Just built and priced with the same old price tags.

£250-400k in seaside towns where most residents were only working 6 months of the year at minimum wage. Nuts.

dopester

Elsewhere, those in the know for that area are saying the £238K figure was hugely "Inside Track" style over-priced in the first place. And that the building "has developed a huge crack in the exterior wall."

Although even say £140K to £71K is some fall. Still hugely overpriced if it's a dive with rough sorts living there.

Conrad

iyiarz wrote: »

Scaremongering media at its best.

.

A slight rebalancing following years of weekend property supplements full of smug tales of property gains, and then there were the never ending property !!!!!! shows

Why is gains are ok but talk of falls are toxic?

beingjdc

iyiarz wrote: »

You would be better keeping it and letting the market recover a bit before selling, even if it was still at a slight loss.

The owners are losing £400 a month gross (more net), and the market is expected to keep falling for about three years. So their losses on paper will widen, and they'll lose £15000 cash, before this advice even starts to make sense...

SouthCoast

PN. I can do £550k.

Been on and off the market for ages:

http://www.rightmove.co.uk/viewdetails-17874925.rsp?pa_n=1&tr_t=buy

IMO the most overpriced flat in all of Sussex.

PasturesNew

SouthCoast wrote: »

PN. I can do £550k.

Been on and off the market for ages:

http://www.rightmove.co.uk/viewdetails-17874925.rsp?pa_n=1&tr_t=buy

IMO the most overpriced flat in all of Sussex.

Let's all say that slowly:
HAAAAALF a MIIILLLLION ..... HAAAAALF a !!!!!!!' MIIILLLION ... for a flat.

Now, when I was growing up a flat wasn't anything special. If you had a flat, you wanted a house. Houses > flats 99% of the time.

I think the picture is blurry because the EA was laughing so much himself!!

And what's going on with the decor? Looks like UR NAN + Barbara Cartland or saucy Mills & Boon books (pink wall).

However, they bought that one at £413k so not made a loss on it (yet)
http://www.houseprices.co.uk/e.php?q=20+mariners+quay+bn17&n=10