AteMoose Posted April 10, 2006 Share Posted April 10, 2006 (edited) Was round a friends last night chatting, and turns out they had walked down to a new group of flats that are being built in worcester, at the mouth of worcester canal around a basin. Hundreds of appartments are being built there along with bars and resterants. GF shares a terrace in the area (total rent 500ukp a month), looking out the window at existing flats it feels like your in a very posh holiday resort. Anyway prices for a 2 bedroom apartment start at 190k, the river facing apartments are alot more, but everyone seems to think this would be a good investment, and prices will go up. Quite a few of my friends in there 30's/40s are now buying flats for investment reasons, move to a new flat and looking to rent out there existing flat. Last night this friend they would love to be able to afford to buy one of these flats, as it would be a great investment and would definatly go up in price, but he can afford to do it as he wouldnt be able to get a morgage to cover it. IMHO, these flats are over priced and there are so many posh flats going up in worcester, if you have alot of flats how can they be special, how can they be executive? How can they double in price and be a good investment? How can they rent out for over £1000 a month when there are so many? How can they cost more than houses? Silly flat prices in worcester : city centre flat : http://www.rightmove.co.uk/viewdetails-584...pa_n=1&tr_t=buy Prices of houses : http://www.houseprices.co.uk/e.php?q=wr11ns&n=10 posh flats by the canal: http://www.rightmove.co.uk/viewdetails-612...pa_n=3&tr_t=buy New posh flat in the same area, starting at 190k... going to pie in the sky prices.... http://www.rightmove.co.uk/viewdetails-110...pa_n=3&tr_t=buy If there is this much supply, can these flats be a good investment? Worcester is in the midlands 45 miles south of birmingham, nice place to live but these flats seem expensive in comparison to houses.... http://www.rightmove.co.uk/viewdetails-436...pa_n=2&tr_t=buy TTRTR and others what do you think? Edited April 10, 2006 by moosetea Quote Link to comment Share on other sites More sharing options...
non-FTBer Posted April 10, 2006 Share Posted April 10, 2006 If there is this much supply, can these flats be a good investment? No. Quote Link to comment Share on other sites More sharing options...
Time to raise the rents. Posted April 10, 2006 Share Posted April 10, 2006 TTRTR and others what do you think? I don't do new builds. It's like buying a new car, 20% lost when driving off the forecourt etc. Quote Link to comment Share on other sites More sharing options...
Michael Posted April 10, 2006 Share Posted April 10, 2006 (edited) New builds per se aren't as bad as TTRTR would suggest but these ''executive'' flats are badder than bad! Every town has too many of them especially Leeds and Manchester and they'll lose 40% of their value whatever the rest of the market does........ This is an example in my town.......IT's a good area of the town but in the same street you can buy a large Victorian terrace for this kind of money or detached new build.....Good area but immediate location iffy as back overlooks pub car park and Travel Inn and from the front all you can see is the side of the Crown Hotel...Neither of these are obvious in the sales brochures. http://www.smartnewhomes.com/Search/Develo...0/gallery1.aspx Edited April 10, 2006 by Michael Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted April 10, 2006 Share Posted April 10, 2006 Now that everyone is an 'executive' in the UK who is doing all the work? Quote Link to comment Share on other sites More sharing options...
BillyShears Posted April 10, 2006 Share Posted April 10, 2006 Surely it should be easy to quote to them lots of examples of people losing money on newbuild flats. Then challenge them to find recent examples of people making profits. Should be easy as lots of have gone up and hence it should be easy to find lots of examples of selling prices and asking rents. But the whole thing just makes me thing that the crash is some way off yet. There's just too much positive sentiment out there. Billy Shears Quote Link to comment Share on other sites More sharing options...
Guest Cletus VanDamme Posted April 10, 2006 Share Posted April 10, 2006 Point them to the Daily Mail article about the couple who lost their deposit when the value of their Birmingham new build 'investment flat' collapsed. Quote Link to comment Share on other sites More sharing options...
LTD Posted April 10, 2006 Share Posted April 10, 2006 Was round a friends last night chatting, and turns out they had walked down to a new group of flats that are being built in worcester, at the mouth of worcester canal around a basin. Hundreds of appartments are being built there along with bars and resterants. GF shares a terrace in the area (total rent 500ukp a month), looking out the window at existing flats it feels like your in a very posh holiday resort. Is that the Diglis basin? It also fronts on to the Severn so I think I'd be a bit worried about flooding down there. Entire town centre was submerged for days on end in winter of 2000-2001. Quote Link to comment Share on other sites More sharing options...
Michael Posted April 10, 2006 Share Posted April 10, 2006 Surely it should be easy to quote to them lots of examples of people losing money on newbuild flats. Then challenge them to find recent examples of people making profits. Should be easy as lots of have gone up and hence it should be easy to find lots of examples of selling prices and asking rents. But the whole thing just makes me thing that the crash is some way off yet. There's just too much positive sentiment out there. Billy Shears yes, it's the mindset of the average Joe Bloggs that determines the market ..NOT the mindset of the type of people who post on web forums about house prices.... Most of the young people i work with are upbeat about the housing market and want to buy asap. Now that everyone is an 'executive' in the UK who is doing all the work? Eastern European 20-somethings Quote Link to comment Share on other sites More sharing options...
BillyShears Posted April 10, 2006 Share Posted April 10, 2006 Eastern European 20-somethings Including dancing naked in front of young royals it would appear. Billy Shears Quote Link to comment Share on other sites More sharing options...
Realistbear Posted April 10, 2006 Share Posted April 10, 2006 Now that everyone is an 'executive' in the UK who is doing all the work? The "work", or lack of it, is all part of Gordon's "Miracle Economy." You just buy a house/flat and watch it go up in value. The more you buy the more you make. You don't work for the money you just borrow it from a bank. Truly, truly, I say unto ye, its a miracle! Quote Link to comment Share on other sites More sharing options...
AteMoose Posted April 10, 2006 Author Share Posted April 10, 2006 Is that the Diglis basin? It also fronts on to the Severn so I think I'd be a bit worried about flooding down there. Entire town centre was submerged for days on end in winter of 2000-2001. yes, it is diglis basin, its about 15m above the normal river level. Quote Link to comment Share on other sites More sharing options...
Goat Posted April 10, 2006 Share Posted April 10, 2006 Now that everyone is an 'executive' in the UK who is doing all the work? "refuse executive" - binman "telesales executive" - call centre operator "environmental health executive" - rat catcher. "debt enforcement executive" - baliff. "Inland Revenue executive" - untrained lobotomised moron (sorry, couldn't resist). Quote Link to comment Share on other sites More sharing options...
FreeFall Posted April 10, 2006 Share Posted April 10, 2006 Point them to the Daily Mail article about the couple who lost their deposit when the value of their Birmingham new build 'investment flat' collapsed. Thing is, the price hasn't collapsed - it's had a minor downward "twinge" in which they lost 20 grand. Wait until the sh1t hits the fan and then see what these flats are worth... Quote Link to comment Share on other sites More sharing options...
isv Posted April 10, 2006 Share Posted April 10, 2006 Well this one in Diglis basin was reduced by £2k last week: http://www.rightmove.co.uk/viewdetails-7943729.rsp Quote Link to comment Share on other sites More sharing options...
dogbox Posted April 10, 2006 Share Posted April 10, 2006 (edited) I don't do new builds. It's like buying a new car, 20% lost when driving off the forecourt etc. I know I ought to change the record, but I just have to make this point again: The smart money is buying abroad. Anyone looking to aquire UK stock now really is not an investor. People form all over Europe are investing abroad - this is where the momentum is. Im currently looking at off - plan in Saidia Morocco (the new Cote D'Azur). I only invest 40% now, the rest in 3 years and capital growth will be 25% + pa, no income tax on the rent, 20% cgt over £60 k gains reducing to ZERO after 10 years, Spain Morocco tunnel being built. THE UK IS A MATURE MARKET AND SPAIN IS IN DEATH THROWS. See my thread in 'investing abroad' - Morocco. Edited April 10, 2006 by dogbox Quote Link to comment Share on other sites More sharing options...
doomwatch Posted April 10, 2006 Share Posted April 10, 2006 IMHO, these flats are over priced and there are so many posh flats going up in worcester, if you have alot of flats how can they be special, how can they be executive? How can they double in price and be a good investment? How can they rent out for over £1000 a month when there are so many? How can they cost more than houses? Saw a mate at the weekend also who live in Guildford. Apparently there's a new block of "exec" flats in the centre near the town hall that have had to follow the new gov initiative to house a certain % of council residents. Apparently all the posh BTLs are up in arms as the "council residents" are taking over place by inviting their pikey mates into the shared pool & having all weekend parties, dealing all sorts of goodies etc. We laughed all the way to the pub. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted April 10, 2006 Share Posted April 10, 2006 I don't do new builds. It's like buying a new car, 20% lost when driving off the forecourt etc. Yeah... and you invariably end up driving over some slimy toad, which just messes the tyres up. Quote Link to comment Share on other sites More sharing options...
BillyShears Posted April 10, 2006 Share Posted April 10, 2006 Saw a mate at the weekend also who live in Guildford. Apparently there's a new block of "exec" flats in the centre near the town hall that have had to follow the new gov initiative to house a certain % of council residents. Apparently all the posh BTLs are up in arms as the "council residents" are taking over place by inviting their pikey mates into the shared pool & having all weekend parties, dealing all sorts of goodies etc. We laughed all the way to the pub. But I thought it was meant to be like Pygmalion with the young executive professionals in the role of Henry Higgins and the council tenants in the role of Eliza Dolittle... Billy Shears Quote Link to comment Share on other sites More sharing options...
doomwatch Posted April 10, 2006 Share Posted April 10, 2006 But I thought it was meant to be like Pygmalion with the young executive professionals in the role of Henry Higgins and the council tenants in the role of Eliza Dolittle... Billy Shears Oh yes, I forgot to mention, they have also trashed 2 lifts & pissed all over in the underground exec car park. Quote Link to comment Share on other sites More sharing options...
BuyingBear Posted April 10, 2006 Share Posted April 10, 2006 Oh yes, I forgot to mention, they have also trashed 2 lifts & pissed all over in the underground exec car park. How I love our high density socially engineered future. Quote Link to comment Share on other sites More sharing options...
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