Tuesday, Apr 17, 2007
It's supply and demand, all over again!
MortgageIntroducer: A flat out case of overload
Together with the CPI > 3% and the news that 3i has withdawn offer for Foxtons, this link makes another great reading today. Among the best statements: "With the aching shortage of housing in the UK, one would not think that, at the moment, there is too much development. Yet, this very problem is rearing its head in the form of new build flats and apartments" "There is only the possibility of a slump in this market if interest rates get hiked by 0.50 to 1 per cent. A lot of places would no longer be viable then and smaller investors would be vulnerable" “The downside of oversupply is rents and yields might reduce in the short term, but it is a reasonably safe investment because most people investing are those with bigger portfolios” B@***@rds!!!
3 Comments
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1. dugmug said...
So, the article says there are already blocks of new flats standing empty, and that the first wave of BTL repossessions are already coming through, but that that actually everything is fine providing interest rates don't up? It would seem that rates are quite high enough to be causing problems already matey!
2. Shipbuilder said...
It's new flats galore in Belfast centre - with plenty more on the way. City centre living may make sense in Manchester or London, but from the outskirts of Belfast it's 10 minutes in a taxi, for about 6 or 7 quid. In other words, you'd have to be an idiot to buy one.
3. enuii said...
Got hundreds of empty 1/2 bedroom new build apartments in my neck of the woods, there must be thousands of them standing empty in between Liverpool and Manchester as they are exactly the sort of property that people do not want in such quantities. Countryside Properties has even lowered themselves into building them and is now offering them (today in the local paper) to people who earn £15K a year.
Quote 'Earning over 15K and trying to get on the property ladder?' call today brand new Apartments available! The 1 bed apartments are available for rent at £500/month or you can buy one for?, surpise, surprise they are very coy about the prices on their rock bottom of the range 1 bed apartment when the cheapest one in Warrington from another developer is £97500.
Anyone in their right mind fancy over 6X a 15K Salary for a 1 bed apartment when there will shortly be an oversupply of such property!