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cypher007

Large Amount Of Apartment Building

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over the last year a couple of cranes have gone up along with some medium sized apartment blocks, add a couple of medium sized housing estates, and the roads into Boston are covered with yellow signs pointing to the new developments. whats going on?

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over the last year a couple of cranes have gone up along with some medium sized apartment blocks, add a couple of medium sized housing estates, and the roads into Boston are covered with yellow signs pointing to the new developments. whats going on?

anyone? if were about to go into a HPC why all the new construction?

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A lot going on down the M5 corridor too.

These are developments that got the green light when land was cheap and the Recovereh was in full swing.

If you can handle a newbuild, might be some bargains this winter.

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This would help explain the GDP data then.

I noticed a medium sized estate near me that had been mothballed has been completed

Yep, one apartment block near me restarted after being mothballed for six months or so... A fairly large estate (roughly 700 houses) started about a year or so ago, thanks to major investment from a local housing association...

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yes, but why start construction of new houses/flats if the market is about to fall off the edge? i would think these developers are not that stupid that they could end up making a loss? or is it that they build them that cheap that it would take maybe a 50% fall in the market before they would make a loss?

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yes, but why start construction of new houses/flats if the market is about to fall off the edge? i would think these developers are not that stupid that they could end up making a loss? or is it that they build them that cheap that it would take maybe a 50% fall in the market before they would make a loss?

Developers make their loss or profit on the land. The cost of the build is going to be pretty much the same, this year, last year or next year.

The only reason for building or not building today, on land that you already own is whether you think that they are going sell easily or sit for months unsold.

They might just have called that one wrong!

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5000 new houses being built in Bracknell - progress ground to a halt after the credit crunch - in recent months new phases have opened up - the road connection to the A329M is being put in now - and they are selling.

Talking to a surveyor the other day - he told me Bellway Homes development in Wokingham was selling well.

Make of it what you will.

yeah you see thats what im seeing here also. so im not entirely sure theres even a glimer of an HPC on the way. i think there must still be a lot of easy credit available. see my this post for an example:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=153073&st=0&p=2752481&hl=cypher007&fromsearch=1entry2752481

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yeah you see thats what im seeing here also. so im not entirely sure theres even a glimer of an HPC on the way. i think there must still be a lot of easy credit available. see my this post for an example:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=153073&st=0&p=2752481&hl=cypher007&fromsearch=1entry2752481

Seeing a similar thing too in the Worcestershire area. Seems to be a lot of planning permissions being given out left right and centre by the local council. The old sugarbeet factory in Kidderminster is now going to have 200 homes built on the land. Also, an area on the outskirts of Worcester looks to be getting 1500 homes plonked on it? Very odd! The reason I say odd is because this fricken county is littered with new build homes that cannot be sold or even rented out and of course half built stuff since 2008 that show no signs of restarting building work! And to top it all off, on the commercial side there is lots of newly built units that are just standing there empty...one estate in particular was funded via a pension company who in the end sold it off at a loss. And still, 90% of the units are still empty!!

God knows where the money is coming from for these developments!

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And to top it all off, on the commercial side there is lots of newly built units that are just standing there empty...one estate in particular was funded via a pension company who in the end sold it off at a loss. And still, 90% of the units are still empty!!

Are you talking about the modern looking units on the outskirts of Kidderminster, coming from the Worcester direction? I went past them earlier this year, and they looked just as empty as when I went past them a few years previous! Somebody must have lost/be losing a fair bit on those.

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Was the surveryor also an EA by any chance? Would you expect a surveyor to say anything else?:rolleyes:

5000 new houses being built in Bracknell - progress ground to a halt after the credit crunch - in recent months new phases have opened up - the road connection to the A329M is being put in now - and they are selling.

Talking to a surveyor the other day - he told me Bellway Homes development in Wokingham was selling well.

Make of it what you will.

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Are you talking about the modern looking units on the outskirts of Kidderminster, coming from the Worcester direction? I went past them earlier this year, and they looked just as empty as when I went past them a few years previous! Somebody must have lost/be losing a fair bit on those.

Yep that's the ones! Initially funded by a Pension fund company and I believe the whole estate has changed hands twice. So far about 5 companies set up in those units and all but one have gone bust! Screw Fix being the only one that is still there!

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Good news. :)

We need more supply. And judging by the ever rising rents of the last 15 years, there is plenty of opportunity for apartment builders and owners to make money.

For a lot of people apartments are a great deal. As a homeowner once you get some repair bills, and property taxes you realize what it costs.

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Good news. :)

We need more supply. And judging by the ever rising rents of the last 15 years, there is plenty of opportunity for apartment builders and owners to make money.

For a lot of people apartments are a great deal. As a homeowner once you get some repair bills, and property taxes you realize what it costs.

Not sure about rising rents - I don't see it on the ground - just more bull from BTL mouthpieces. And yields are dreadful whichever way you look at them.

If you're a housebuilder/developer then you'll grasp at any sort of positive sentiment to justify starting building again, and this is what has happened. It's their business and it's human nature.

Loads of new "apartments" going up near me on City Road (London, EC1), and one big block which is half-finished where work seems to stop and start on a monthly basis - they must be looking at the Halifax HPI data!

Edited by Constable

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A lot of people and developers think that prices will remain high after a small drop off so think it's profitable to keep building. They will get a shock over the next 12 months when big continuous drops occur.

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Good news. :)

We need more supply. And judging by the ever rising rents of the last 15 years, there is plenty of opportunity for apartment builders and owners to make money.

For a lot of people apartments are a great deal. As a homeowner once you get some repair bills, and property taxes you realize what it costs.

Apartments are a great deal.

Well, the ones I lived in in Sweden and Germany were. That's no doubt because they built high quality, as opposed to the UK "low cost" mantra that's blighted every generation of building since 1945.

Builders building for an HPC have no choice: if they've paid for the land, they have to build to make any return on that investment. If they bought at bubble-prices but have to sell at HPC-prices then they make a loss, but not-building makes a bigger loss.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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