Sunday, Jun 29, 2008
Phase 2: The capitulation of BuyToiLet
FT: Investors secure huge discounts on properties
"Residential property investors are securing discounts of up to 30 per cent on prime new-build developments as housebuilders rush to offload stock before prices fall further. They are finding opportunities in parts of prime central London and the south, typically where development began before the downturn in the housing market. Developers are increasingly desperate to find buyers and will negotiate large bulk discounts, according to agents" this is pretty much it
Posted by confused76 @ 12:23 PM (922 views) Add Comment
8 Comments
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1. Davros said...
Unfortunately for these investors, 30% off is the market rate... at the moment. What are they going to be worth in 5 years time. 7% in a savings account guaranteed seems pretty good to me.
2. last_days_of_disco said...
The people buying these are catching a falling knife. They have no conception of how deep this drop is going to be.
3. bystander said...
last_days_of_disco, neither do we, we can watch , wait and hope, but they are buying at what they perceive as a good price? Do we all wait until prices begin to rise regularly before putting offers in, or will this mean we have missed the falling knife and the boat? Just playing devils advocate.
4. jack c said...
Surely this statement signals caution to any would be buyer - "as housebuilders rush to offload stock before prices fall further"
Agree with LD of D @1 - the price drop is going to be big and predicting the bottom is very, very difficult - at this stage nothing more than catching a falling knife.
5. titaniccaptain said...
"Residential property investors are securing discounts of up to 30 per cent on prime new-build developments as housebuilders rush to offload stock before prices fall further"...........................And this is happening how far into the crash??????? Im going to catch the falling knife by the handle...... in about 18 months just before it hits the floor
6. paranoia blue said...
Trouble with the "falling knife" - you catch it, you drop it, and it then stabs you in the foot.... pinning you to the floor, for some time to come :(
7. bystander said...
Like the imagery paranoia blue.
8. rumble said...
@bystander @3: Devils advocate is good. Considering banks tightening up on credit, inflation, increased redundancies, current trend, lack of confidence, other countries' economies... definitely a knife, not a boat.
@tc @5: 18 months? The states has been cr@pping out for a while now with no sign of recovery. I'm not saying a S2R1 style apocalypse or mayan resurrection/revolution, but the last fall lasted 5 years from a much lower peak, and even though the initial plummet may be fairly quick, it will be followed by a drawn out gentle decline. Take a look at the HPC front page graph. I'm not too clued up on the state of the economy around 1990 - how does it compare to the current global mess?