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House Price Crash Forum


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About SSNomadic

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    HPC Poster
  1. Yes, the rent will cover the mortgage plus service charge. Just, but it will cover it. And thats with a 10% deposit based on the amount borrowed. Obviously not a 90% ltv but still reasonably happy with the outcome. Means the mortgage to pay is lot lower with a bit more capital upfront hit but cest la vie. outcome= tenant covers and pays down mortgage while I lick my wounds from the whole ordeal. if i overpay each month reasonably confident mortgage could be agressively paid down to nil in 10-15 years.
  2. Tenant is secured. Rent will cover mortgage so not a bad situation. The decision to invest is a sunk cost. I accept it was a poor decision but hindsight is a wonderful thing. Have invested in equities wisely and have a significant return which reduces paper loss. Really don't expect further drops to be honest in the scheme. Plan is to use savings in an offset mortgage and aggressively pay down on mortgage. I accept I need to have a slice of humble pie but don't think it's quite the large size everyone thinks it is. I could have invested in a much worse development and be facing 40-50% paper loss with no prospect of future growth.
  3. Lowest valuation seen in the development is around 28% drop I'm value from agreed prices. When you consider the developers incentives to complete of 10% reduction this is around 18% down. Yes the prices have dropped and yes I have lost money ( on paper only). But, if I had invested in any other property I would have lost more money and be locked into a mortgage payingfor the negative equity. As it stands I will pay a far lower mortgage for a property valued as low as it will go given that the tq is still a building site with years of development ahead of it. The rent will cover the mortgage so worst case scenario in 25 years I have a pension pot and best case the Market returns and in 10 years I can sell for what I paid and have benefit of 10 years pat down on mortgage by a tenant. All in all it could be a whole lot worse and I stand by my view that tq is by far the most resilient scheme in Belfast.
  4. Would you be willing to disclose the area of this property? The numbers look very acceptable and would be keen to know the general area or postcode of where you are achieving these returns.
  5. I wonder if they settled out of court with renegotiation? If so that in itself is good precedent.
  6. Has anybody approached the developer to point out that they are unlikely to obtain finance and to see what way things will proceed I.e are they going to enter negotiations or just sue?!
  7. If you dont consider it useful then dont read the posts and dont post yourself. Its very simple. And how do you know people are no further on? I think the forum has served as an excellent platform for people to discuss ideas/feelings both on this and through other means.
  8. I think its complicated. if the developer adpts a hard ass approach and sues people, possibly forcing bankruptcy etc upon people, will this be good for the TQ development going forward? i.e will people want to buy apartments from them? NI has a funny way of supporting its people. I personally think it makes more sense to work with people rather than against them and recognise that severse economic conditions are upon us and rahter than people not wanting to complete, they now no longer can without some support/help from the developer.
  9. Can you name one such development where this has happened I.e forced completion? An awful lot of people have been trying to work out if this will happen, perhaps you have the answer for everyone! Its not quite as simple as build apartments, sue people to complete. As opposed to people not wanting to complete the reality is now that people cannot complete at the agreed prices. With increased deposits on the lending side meaning another 10-20% will be needed and potential shortfalls of around another 20% plus the reality is probably 90% of purchasers will bot be able to raise or have these funds? So you propose the developer sues for the craic? This thread has been a useful forum for people to discuss issues etc, I thought we had gotten away from the simplistic view of your screwed and going to be sued on about page 2 of the thread.
  10. Well calculated..... A hit of £50m might not be that bad if it secured completions and allowed the area to continue as planned. Given their significant interest in the first phases succeeding it be a viable option. finance for this was secured a long time ago and from memory when the development was first mooted the prices were expected to be considerably lower than what they ended up at. I would imagine they have factored this in. Id love to know what sort of price it costs per sq ft for developers to build apartments etc. obviously spec dependent etc, but as a general guide? would we be talking £50 a sq feet/£100?
  11. I'm not sure of those calculations. I imagine finance has been secured initially for the first phase development I.e the first 350 apartments. If we take an average of 250k then a drop of 20% is around 20m
  12. Hmm, given their commitment to the TQ i doubt the developer wants to go bust or indeed pull out from the area. I do agree though that it would seem they are trying to get the first lot completed to see what they are actually going to get for them, ie how many people can actually complete on them .
  13. Has anybody noticed that the final blocks in the Arc seem to be moving an awful lot slower than the first few cores. Does anybody have any idea or whether the development is running on time? It seems to me that they are trying to get the first few cores finished and they have stalled on the other cores? From looking at the progress on the final few cores, they will be doing very well to have them complete by Oct/Nov
  14. I don't see why an independent broadsheet would want to publish a fluffy article simply to help out private developers?
  15. Interesting article on TQ http://www.guardian.co.uk/society/2009/jan...rty-development
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