Jump to content
House Price Crash Forum
Sign in to follow this  
Ephraim Bubble Blower

Enfield - Tower Point

Recommended Posts

I've always kept my eye on the large Tower Point development in Enfield, Middx - it's a Comer Homes redevelopment of an old office block into the 'lifestyle' apartments. I'd always suspected that the type of people who can afford to, and wish to, live in 'lifestyle' apartments might prefer to do it in an area not quite so populated with chavs. The development opened for the first phase about three years ago, and there have always been a large number of properties available direct from the developer, whilst I had suspected the majority actually sold were sold to BTL since so many were constantly available to rent. Now it seems, the BTL have realised they've been sold a white elephant and I couldn't help noticing the following ads - they seem to show BTL bail-outs trying to undercut other sellers (perhaps the developer itself or just early buyers trying to save their precious capital).

http://www.findaproperty.co.uk/agent.aspx?...prop&pid=363752 (Chain Free!)

http://www.findaproperty.co.uk/agent.aspx?...=prop&pid=22007

http://www.findaproperty.co.uk/agent.aspx?...prop&pid=127672

http://www.findaproperty.co.uk/agent.aspx?...prop&pid=348647

Share this post


Link to post
Share on other sites

Now it seems, the BTL have realised they've been sold a white elephant and I couldn't help noticing the following ads - they seem to show BTL bail-outs trying to undercut other sellers.

White elephant all right. But then it was from the day it was announced. Looks nice when you see the pictures taken from inside - or literally 10 feet outside the front door. But you and I know what it's like and where it really is; and, as you say, the chav-tastic set of neigbours you're going to get. Plus all the regular piss-heads, wailing Police sirens, etc. that are Enfiled town each Friday/Saturday night.

For the upper price of some of those 2 bed flats you could by a nice house in a far nicer part of Enfield or Southgate. And with prices heading south fast, that's an even nicer house in the next year or so.

These flats will bomb big time. I remember the last bubble - and that was when the flats outside Southgate tube station were put up and selling at the same prices. A year or two later, you couldn't give the damn things away. And now, even after the latest 5 year 'boom' in prices, they ain't fetching much more than they were in the late 80's.

If you want to see another White Elephant, take a look at the flats opposite the LA gym in Southgate, just across the road from the tube station on Wichmore Hill Road. Lifestyle flats - with a damn bathroom shop on the ground floor! And all they want for a small two bedder is about 300-400k. No wonder the place is empty. Like those in Enfield, it's another development of recent years that just completed too late - the boom is already gone.

Nomadd

Share this post


Link to post
Share on other sites

Funnily enough I used to rent one of those flats right opposite Southgate tube - i paid £900 pm and then the landlord offered to cut it to £750 to persuade us to stay - I then noticed an identical flat for sale for....wait for it.....£280,000 (a juicy rental yield of 3.2%).

I'm now living abroad but have noticed the glut of new developments in Southgate/Enfield/Barnet on my returns to London, most of which never seem to sell.

Share this post


Link to post
Share on other sites

The other beautiful thing about this development is the ability to work out the rental yield and how much negative cashflow any BTLs are suffering from. This link shows an identical property to those for sale:

http://www.findaproperty.co.uk/agent.aspx?...prop&pid=317752

£230pw or roughly £1020 pm - given that the landlord was actually advertising it at this rent, let's assume the canny tenant got a 5% discount so about £970pm. As you can see in the links in the original thread, someone is trying to flog one off for say £310,000 implying a gross yield of 3.75% (before maintenance, insurance, management fees etc..). Let's assume it was bought a couple of years ago for £275,000 (I recall this was the going rate at the time) and was funded with a 75% interest only mortgage at a fixed 6.5% over 25 years. The monthly mortgage payment is £1,117 pm, and recall this is before costs, compared to monthly income of £970pm.

It makes you wonder.

Share this post


Link to post
Share on other sites

It makes you wonder.

It certainly does. The simple fact is that anyone who's bought anything in this region in the last 12-24 months (probably even more) isn't covering their mortgage costs. The Enfiled Advitiser shows that rental prices have dropped significantly, and there's a glut of stuff available for rent. If I took out an interest-only mortgage on the property I current rent, I'd be well over £1,500 / month worse off. Any recent landlord claiming any sort of positive yield around these parts is just a flatout lier.

Nomadd

Share this post


Link to post
Share on other sites

28 Jun 2005 Flat G3 52 Tower Point, Sydney Road, Enfield, Greater London EN2 6SZ Flat £225,000 LH

24 Jun 2005 Flat 702 Tower Point, Sydney Road, Enfield, Greater London EN2 6SZ Flat £372,500 LH

Who is heck paid over 370K! Mind boggles.

No, no...these flats are going for under 200K right now (see link below). Asking price = 200K offer 10% less and you have 180K.

This is -still- at least 50K more than they are worth.

These flats will be sub 140K soon.

These flats are going to be excellent for Enfield local council to rent for it's growing one parent families, dolelites, chavs, drug dealers, battered wives, refugees, etc. etc.

Once rental incomes drops to less than 200/week..party is over.

http://www.rightmove.co.uk/viewdetails-819...pa_n=9&tr_t=buy

Edited by Pluto

Share this post


Link to post
Share on other sites

These flats are going to be excellent for Enfield local council to rent for it's growing one parent families, dolelites, chavs, drug dealers, battered wives, refugees, etc. etc.

Yep, and just imagine if you were the sucker that parted with £372,500.00 to live either side of that scum. Oh, and they'd be up above and below you as well, so you'd be completely surrounded. Still, only 25 more years to go before the mortgage is paid off.. And you wouldn't have to travel far in order to buy some drugs to ease your sorrow (or a gun to end your sorrow terminally.)

Nomadd

Share this post


Link to post
Share on other sites

Yep, and just imagine if you were the sucker that parted with £372,500.00 to live either side of that scum. Oh, and they'd be up above and below you as well, so you'd be completely surrounded. Still, only 25 more years to go before the mortgage is paid off.. And you wouldn't have to travel far in order to buy some drugs to ease your sorrow (or a gun to end your sorrow terminally.)

Nomadd

The wailing police sirens will become a welcome relief.

Enfield council and most other councils love these types of properties. Low maintenance and lots available within a defined area. Most councils do the repairs themselves, so they really like low maintenance close together. 200 squid per week and these become appealing to them. BTL'ers will be desperate, and will take anything as they will not be selling.

Edited by Pluto

Share this post


Link to post
Share on other sites
Guest Cletus VanDamme

The wailing police sirens will become a welcome relief.

Enfield council and most other councils love these types of properties. Low maintenance and lots available within a defined area. Most councils do the repairs themselves, so they really like low maintenance close together. 200 squid per week and these become appealing to them. BTL'ers will be desperate, and will take anything as they will not be selling.

A similar situation to New River Village in Hornsey. The initial wave of flats were flogged off-plan to unsuspecting buyers for daft prices (270K for a 1-bedder overlooking a railway line anyone), now the development looks like a high density sink estate. See

http://www.foxtons.co.uk/search?search_for...mit_type=search

Cletus

Share this post


Link to post
Share on other sites

I notice that one bed flats without parking at the New River Village development are going for around £240 per week on gumtree. You could rent a one bed flat in a nice garden square in Pimlico for the same price!

Share this post


Link to post
Share on other sites

The main thrust of selling these flats have been geared towards the "young professionals". In reality, most of the these flats get bought be speculators (BTLers) for the average Joe to rent. Once the glamour of these investments fizzle out, the only buyers left are the average Joes. Oh, and of course, the DHSS will rent them from you for their growing list of clients.

In short ---- these new build flats are going to crashing back down to earth ---- in every major city in the UK.

BUYERS BEWARE!

Share this post


Link to post
Share on other sites

The main thrust of selling these flats have been geared towards the "young professionals". In reality, most of the these flats get bought be speculators (BTLers) for the average Joe to rent. Once the glamour of these investments fizzle out, the only buyers left are the average Joes. Oh, and of course, the DHSS will rent them from you for their growing list of clients.

In short ---- these new build flats are going to crashing back down to earth ---- in every major city in the UK.

BUYERS BEWARE!

The great irony is how many 'young professionals' could actually afford these places without either a) banks lending inappropriate multiples of income, or B) substantial parental help? The odd 'young professional' in say banking might be earning £50k+ and be in a position to buy one (though if you were a banker in your mid-20s earning this money, you'd hardly live in Enfield), but your average trainee accountant/solicitor/doctor* (*delete as appropriate) would be needing to borrow 7-8x income.

Share this post


Link to post
Share on other sites

that building looks like it should be on the sea front in Benidorm

Agree.

My GF lives up the road in Oakwood so I know Enfield well and this building looks shite.

Mind you there's plenty of shite looking buildings thrown up these days. Any of the new buildings thrown up along the south bank around Battersea/Vauxhall are similarly shite. (Except the MI5 building - that looks great).

There's a development of 22 new built flats opposite my GF's place in Oakwood. The build finished over a year ago and they have only sold half. Maybe people don't want to spend over quarter of a million quid for a tiny little new built box at the end of the Picadilly Line?

Edited by TW11

Share this post


Link to post
Share on other sites

Oh yeah, and the local property paper up in Enfield is full of reductions - much more blatant about the reductions than my local property rag.

Edited by TW11

Share this post


Link to post
Share on other sites

Oh yeah, and the local property paper up in Enfield is full of reductions - much more blatant about the reductions than my local property rag.

Yes, and this in the same week the BBC choose to report: London prices up!

Nomadd

Share this post


Link to post
Share on other sites
I've always kept my eye on the large Tower Point development in Enfield, Middx - it's a Comer Homes redevelopment of an old office block into the 'lifestyle' apartments. I'd always suspected that the type of people who can afford to, and wish to, live in 'lifestyle' apartments might prefer to do it in an area not quite so populated with chavs. The development opened for the first phase about three years ago, and there have always been a large number of properties available direct from the developer, whilst I had suspected the majority actually sold were sold to BTL since so many were constantly available to rent. Now it seems, the BTL have realised they've been sold a white elephant and I couldn't help noticing the following ads - they seem to show BTL bail-outs trying to undercut other sellers (perhaps the developer itself or just early buyers trying to save their precious capital).

http://www.findaproperty.co.uk/agent.aspx?...&pid=363752 (Chain Free!)

http://www.findaproperty.co.uk/agent.aspx?...p&pid=22007

http://www.findaproperty.co.uk/agent.aspx?...&pid=127672

http://www.findaproperty.co.uk/agent.aspx?...&pid=348647

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.

  • 301 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.