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

Overpriced Flats

Recommended Posts

The recent news about Paragon mortgages pulling out of BTL got me thinking about the price of flats in my area. The prices are absurd compared with similarly priced older properties.

Here's an example at the top end of the market.

http://www.rightmove.co.uk/viewdetails-442...pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-771...pa_n=2&tr_t=buy

Further down the market,

http://www.rightmove.co.uk/viewdetails-931...a_n=11&tr_t=buy

http://www.rightmove.co.uk/viewdetails-101...a_n=10&tr_t=buy

And at the bottom end:,

http://www.rightmove.co.uk/viewdetails-442...pa_n=8&tr_t=buy

http://www.rightmove.co.uk/viewdetails-488...pa_n=8&tr_t=buy

No wonder some lenders are getting nervous, I can see some of these flats losing at least half their value.

Share this post


Link to post
Share on other sites

The recent news about Paragon mortgages pulling out of BTL got me thinking about the price of flats in my area. The prices are absurd compared with similarly priced older properties.

Here's an example at the top end of the market.

http://www.rightmove.co.uk/viewdetails-442...pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-771...pa_n=2&tr_t=buy

Further down the market,

http://www.rightmove.co.uk/viewdetails-931...a_n=11&tr_t=buy

http://www.rightmove.co.uk/viewdetails-101...a_n=10&tr_t=buy

And at the bottom end:,

http://www.rightmove.co.uk/viewdetails-442...pa_n=8&tr_t=buy

http://www.rightmove.co.uk/viewdetails-488...pa_n=8&tr_t=buy

No wonder some lenders are getting nervous, I can see some of these flats losing at least half their value.

Same down hear in Poole. Here is just one comparison:

http://www.rightmove.co.uk/viewdetails-756...pa_n=7&tr_t=buy

http://www.rightmove.co.uk/viewdetails-459...pa_n=6&tr_t=buy

Over the next few weeks and into the New Year I would expect to see loads of flats being dumped onto the market. They are just not worth the money. Add in the fact that most are leashold with expensive maintenance charges/ground rent and at best you get to share a small courtyard garden and can hear the neighbours (especially in cheap new builds). What a load of c..rap!

Share this post


Link to post
Share on other sites

Yes, most new build apartments are over valued. But don't be fooled into thinking there will be a hpc when their value drops. They will be worth what they were always were.

But this is one reason why most BTL lenders insist on 30% deposit, although I only had to put down 15%.

But then my BTL wasn't a brand new overpriced apartment (2 bed £200k).It was a victorian conversion in need of total refurbishment (2 bed £130K).

Buyers of new build apartments are a major reason why prices keep creeping up. And such buyers are still doing so in Berkshire because of high employment and possibly help from their parents.

Share this post


Link to post
Share on other sites

The recent news about Paragon mortgages pulling out of BTL got me thinking about the price of flats in my area. The prices are absurd compared with similarly priced older properties.

Here's an example at the top end of the market.

http://www.rightmove.co.uk/viewdetails-442...pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-771...pa_n=2&tr_t=buy

Further down the market,

http://www.rightmove.co.uk/viewdetails-931...a_n=11&tr_t=buy

http://www.rightmove.co.uk/viewdetails-101...a_n=10&tr_t=buy

And at the bottom end:,

http://www.rightmove.co.uk/viewdetails-442...pa_n=8&tr_t=buy

http://www.rightmove.co.uk/viewdetails-488...pa_n=8&tr_t=buy

No wonder some lenders are getting nervous, I can see some of these flats losing at least half their value.

RICS is under attack from CML for overvaluation of new builds. This is very old news to those of us involved on a daily basis. Investment cartels, often directly linked with the developers, ramp up the sales figures. Banks take a see no evil approach, and everyone, except the FTB is happy. The whole 'industry' is bent. I have declined instructions on this basis, but it doesn't make for good business relationships.

Share this post


Link to post
Share on other sites

RICS is under attack from CML for overvaluation of new builds. This is very old news to those of us involved on a daily basis. Investment cartels, often directly linked with the developers, ramp up the sales figures. Banks take a see no evil approach, and everyone, except the FTB is happy. The whole 'industry' is bent. I have declined instructions on this basis, but it doesn't make for good business relationships.

Blimey - why don't you start a new thread on the above!

Hopefully one of the lurkerhacks will pick it up!

Share this post


Link to post
Share on other sites

Brighton in 1994 was a graveyard for the Halifax B.S. when their repos, typically converted flats, consistently yielded sale prices as low as 30% of valuations previously made by contracted surveyors during the boom. Such were the losses that all subsequent valuations had to be completed by in house surveyors before buyers could obtain their mortgage approvals.Seems there is nothing knew under the sun........

Share this post


Link to post
Share on other sites

Haven't posted for a while and have been busy.

However this post and the price of the properties, both new build and old build, have convinced me that a LARGE reduction in prices will take place over the next few years. My target buy date is now 2007-8.

Between now and then I am going to save like a squirrel.

Hopefully I will be able to buy somewhere to live out my days debt free.

Share this post


Link to post
Share on other sites

Blimey - why don't you start a new thread on the above!

Hopefully one of the lurkerhacks will pick it up!

:)

Been to Manchester today, decided to go on the train, the amount of new builds on the way in to Oxford rd. is frightening. Having said that they have to be occupied..eventually, basic supply and demand will take care of the values surely?

Share this post


Link to post
Share on other sites

Here's one from Highbury, Islington. The house is better located on a quiet road, nearer the tube and the main part of Highbury Fields. The flat is on a busy main road, near the council tennis courts/kids football grounds part of the Fields, and a couple of nasty block/hostel type affairs:

http://www.rightmove.co.uk/viewdetails-501...pa_n=1&tr_t=buy

http://www.rightmove.co.uk/viewdetails-450...pa_n=2&tr_t=buy

A fine example Durch. Who on earth buys these flats?

It is also interesting to note that the nice house is currently split into two dwellings. Maybe a BTL bailing out?

Share this post


Link to post
Share on other sites

RICS is under attack from CML for overvaluation of new builds. This is very old news to those of us involved on a daily basis. Investment cartels, often directly linked with the developers, ramp up the sales figures. Banks take a see no evil approach, and everyone, except the FTB is happy. The whole 'industry' is bent. I have declined instructions on this basis, but it doesn't make for good business relationships.

With apologies, but who are CML please?

VP

With apologies, but who are CML please?

VP

Doh! Council of Mortgage Lenders? to self: "Wake up!"

VP

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.

  • 333 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.