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Ghost Towers: half of new-build luxury London flats fail to sell

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From the article

Quote

We need ‘affordable’ one- or two-bedroom apartments priced at £500,000. We don’t need swimming pools and empty rooftop bars with no one living at home to buy drinks at them. There’s just way too many £1.5m-£2m-£3m flats that all look the same.

erm no, perhaps if you knock off  a 0.

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supply and demand innit bruv, buy em up, rent em out

 

ram em chock full of scumbag immigrants on HB (no DSS) or young scumbag working couples (no pets no pictures)

 

 

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Good.. greedy b@stards hope they end up in the street.. 

Hundreds of Asian investors who had bought London developments off-plan in 2015-16 in the hope of making a quick profit by selling apartments on closer to completion have instead lost hundreds of thousands of pounds. 

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22 minutes ago, ubuntu said:

From the article

erm no, perhaps if you knock off  a 0.

Affordable. Half a million. Speechless.

 

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And once again don't forget the service charges ;) 

Unless they start realising that they need to remove the marble in the main hall to pay for the concrete to fill the empty swimming pool

Edited by Freki

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I am expecting some adds to pop up:

"Exceptionnal reconverted cinema into a luxury 1 bed flat. Main screen has been kept to display the view you would like to have: Sahara dunes, Seychelle Beach, London skyline"

1 minute ago, fru-gal said:

The problem is there is no real pressure to sell them/reduce prices - builders can leave them empty for considerable time presumably (the only real cost is council tax which is negligible for them). Unless we have a LVT they have no incentive to make radical price drops and we have empty monstrosities polluting the skyline with nobody renting or buying them. Perhaps if Corbyn gets in ;) he can order a compulsory purchase and convert them into social housing?

Really no pressure? All the capital invested in those developments are important, and pension funds, individuals are expecting returns. So yes there is a pressure.

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11 minutes ago, TonyJ said:

I would agree. Developers make their money by selling then reinvesting the money in another project. They do not want their capital stuck in an old project, from which they cannot withdraw it. 

Until it's built it's an asset valued at what they intend selling it for, when it's completed and not sold it's a liability. Dropping prices, even on a few of the flats affects all the properties in the surrounding area when it comes to valuation time for mortgages.

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24 minutes ago, fru-gal said:

Then why haven't they reduced prices by much? So many empty properties yet the drops are dribs and drabs here and there with prices still ludicrously high considering the small amount of people who would be able to afford them even at half the initial asking price. More stringent tax pressures and incentives to sell them according to what normal people can actually pay would help.

I think someone mentioned on another thread that often they're not allowed to as it would breach the terms of their finance. (I may well have misunderstood this though!)

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420 is a hell of a lot to have in planning. Where are they putting them ? Flew over London recently and it looked pretty rammed.

Lots of playing fields maybe ?

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43 minutes ago, fru-gal said:

Also, in the aftermath of Grenfell do people who can afford £500k-£3 million really want to live in a 3028403 storey tower? 

Refurbs at 100k a pop in the future might also be a consideration. Clearly these beasts cost a fortune to maintain compared to low rise.

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6 minutes ago, Bsmf said:

This has been known about for years about the huge glut of these being built. But they carried on, why?

Maybe they hoped the goverment would offer the public loans of up to 60% of their value and they could sucker UK first time buyers into buying them instead of the intended foreign investors, some sort of help to buy scheme. But what sort of cynical goverment would try and push its own young first time buyers into buying massively overpriced poroperties just to shore up the balance books of a lot greedy developers?

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1 hour ago, ccc said:

Affordable. Half a million. Speechless.

 

Someone joining a graduate scheme in London after university should be on £50-70k/year by the age of 30 easily, unless theyve done something horribly wrong. Most people buy houses as a couple. £60k/year * 2 people * 4x mortgage multiplier = £480k. Throw in a small deposit and half a million is a reasonable price range for most middle class graduates buying their first property (most people I knew in London were buying around that range).

Servicing a £480k mortgage is around £1800/month which is about what you'd pay to rent a 2 bed flat. Obviously the woman will need to keep working full time after kids unless the guy can step up his game and break the £100k/year mark but then thats london innit.

 

 

If you dont have a reasonably paying job then you probably shouldnt be in London, and certainly not in a 'luxury' apartment complex. But yeah, £500k is fairly affordable for middle class graduates.

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1 hour ago, Errol said:

Hilarious that £500,000 is being termed 'affordable'.

Works if you have £100K for deposit and costs such as stamp duty, the bank is willing to lend you perhaps 4.5 times your joint salary which should exceed £90K.

So, no its not affordable as only a margin of the population can satisfy those requirements.

The only way its affordable is if the government extends HTB loan at 40% but 5 years on - you will have to pay full interest costs on that loan or repay at market value.

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text from a good pal today "going to write to my landlord DEBTjunkie scumbag asking for a rent reduction, what do you reckon?"

 

west London.

 

sentiment.

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1 hour ago, Freki said:

I am expecting some adds to pop up:

"Exceptionnal reconverted cinema into a luxury 1 bed flat. Main screen has been kept to display the view you would like to have: Sahara dunes, Seychelle Beach, London skyline"

Really no pressure? All the capital invested in those developments are important, and pension funds, individuals are expecting returns. So yes there is a pressure.

Absolutely. One thing that struck me on LBC 'housing crisis' phone-ins over the past few years has been the numbers of cabbies phoning in with similar stories. Cabs booked out for an entire day, with waiting included, to ferry groups of Malaysian, Singaporean and HongKong pension fund reps to new build developments. Even though in singapore and malaysia you wouldn't be able to own property outright, their people don't like the idea of selling their citizens as rent slaves to foreign investment funds.

It's also suspicious how those tower block developments went into overdrive from places like Greenwhich to Canary Wharf to Luton and Croydon, just after the time Cameron, Osborne and Boris (with Boris mayor) came back from all those far east trade talk tours. I'm sure there's plenty of City and Wallstreet involvement there too. Queue financial crisis over there at some point, if the BoE stops printing money and the Gov propping up investor tax breaks, with asian/mid-east pension firms going under. 'No one could see it coming blah blah blah'.

All pretty sickening and has potential to get worse after Brexit, when the last levels of restraint are removed from our Banks and Government over the citizenry .

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  • 407 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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