Jump to content
House Price Crash Forum
Sign in to follow this  
Tonkers

Depreciation On New Builds

Recommended Posts

A block of shared ownership new builds (flats) up the road from me, are looking very shoddy, been up for 5 years.

What sort of depreciation do you see on new builds, outside of a falling market situation?

Share this post


Link to post
Share on other sites
A block of shared ownership new builds (flats) up the road from me, are looking very shoddy, been up for 5 years.

What sort of depreciation do you see on new builds, outside of a falling market situation?

Have a look on http://www.nethouseprices.com/index.php?co...ld-House-Prices or http://www.ourproperty.co.uk/ for recent sold prices. Flats have depreciated quite a lot in the last 5 years and on top of that there is always an extra reduction on new flats as everything in them has gone from being new to second hand e.g. the kitchen and bathroom. It also depends on where the flat is e.g. if it is in Leeds city centre then it will have depreciated more than one in a different city. I would guess, if you ignore other depreciations, the depreciation for it being 5 years old would be about 5 - 10%.

Edited by caparn

Share this post


Link to post
Share on other sites
Poor build quality?

Any ideas what they went up for originally?

If a lot of these new builds do suffer from poor build quality does that mean older housing will keep there values better?

The new ones going up next door to this block are asking full price @£240K for a one bedder.

No idea who could be buying them, really. Big social housing area.

Just thinking of the ex LHA scenario where buyers get hit with huge maintainance bills, I imagine this will happen to this block, plus there is the usual mixture of social housing tenants not liable for maintainance.

Share this post


Link to post
Share on other sites
The new ones going up next door to this block are asking full price @£240K for a one bedder.

No idea who could be buying them, really. Big social housing area.

Just thinking of the ex LHA scenario where buyers get hit with huge maintainance bills, I imagine this will happen to this block, plus there is the usual mixture of social housing tenants not liable for maintainance.

I'd say 10-15% was the normal new build premium, so this would be wiped out almost immediately.

In reality the 10-15% was really an extra as the buyer then didn't have to do anything when they moved in. Of course towards the end of the boom, the developers had worked out the knack of making things look nice and of good quality when in fact they weren't and were even pushing up the new build premium, I'd say 50% in some cases.

This is the oldest trick in the book, rather like:

Bakers doctoring flour with chalk or wood shavings.

Or making product packages smaller for the same price

Drugs dealers cutting their wares or selling Oxo cubes as cannabis resin

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   289 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.