Jump to content
House Price Crash Forum
Sign in to follow this  
the don

Economics Of 2br Flats

Recommended Posts

on my road in chester, morris homes bought 2 bungalows on large plots fro redevelopment .

not yet found out what they paid from nethouse prices, but the bungalows would normally have sold for £350k each. assuming that they went for £500k each because of the redevelopment potential, that makes an invetmentof £1.0m in theland.

i assume that planning etc costs would be £25,000 max.

morris home have built 2 blocks of a total of 15 2BR apartments.

i estimate the costruction costs will be £750k absolute max.

so the investment, apart from marketing and overhead costs is c £1.775 million. (£118k/flat)

thye asking prices for the flats is £250k-£280k.

if they get an average of £225k then the gross sales value will be £3.375m.

that makes a gross profit of £1.6m or 47% return on sales.!!

pretty good going.

the only problem i see is that in this area for even £225k you can buy an estate 3 bed deatched.

look at it another way.

for these prices you can buy reasonable 2BR flats in central london.

anyone that pays this money must be insane.

Share this post


Link to post
Share on other sites

The same thing has happened near to where I live, two bungalows demolished to make way for 2 bed flats.

I was hoping to get a life Don, now I've got to keep an eye on this and report back. Thanks mate :P

Share this post


Link to post
Share on other sites

This is good!!

Brownfield re-development will save some of the greenbelt, what is wrong with that?

It also quickly and easily increases the supply side of housing, which economically will reduce prices.

I have said before the word 'Flat' will be very dirty soon as people (BTLers) get burned by flooded a market.

Share this post


Link to post
Share on other sites
This is good!!

Brownfield re-development will save some of the greenbelt, what is wrong with that?

It also quickly and easily increases the supply side of housing, which economically will reduce prices.

I have said before the word 'Flat' will be very dirty soon as people (BTLers) get burned by flooded a market.

Price of a FLAT will be FLAT

:D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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%



×
×
  • Create New...

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.