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

Negative Equity Birmingham City Centre

Recommended Posts

Hi Folks,

Local Midlands News reported that many of the new 'executive flats' in Birmingham have now dropped in value. Featured dissapointed buyers who had purchased flats, are still waiting for them to be finished and they have already dropped significantly in value (@20k).

Regards

Rich

PS: I have just read a post in relation to this on the forum - apparently it was a circa £40k drop!

Edited by BangCrashWallop

Share this post


Link to post
Share on other sites

Hi Folks,

Local Midlands News reported that many of the new 'executive flats' in Birmingham have now dropped in value. Featured dissapointed buyers who had purchased flats, are still waiting for them to be finished and they have already dropped significantly in value (@20k).

Regards

Rich

PS: I have just read a post in relation to this on the forum - apparently it was a circa £40k drop!

Which paper was it - I have looked at the Evening Mail (that includes the Post and Mercury) they are all very upbeat about property prices

I know Birmingham well and am interested in the market as I have a business there

They are still building in the City Centre and are want in excess of £300k for some of the better places

Share this post


Link to post
Share on other sites

Hi Folks,

Local Midlands News reported that many of the new 'executive flats' in Birmingham have now dropped in value. Featured dissapointed buyers who had purchased flats, are still waiting for them to be finished and they have already dropped significantly in value (@20k).

Regards

Rich

PS: I have just read a post in relation to this on the forum - apparently it was a circa £40k drop!

The reason that there have been so called drops in value of new executive flats is the sheer stupidity of many buyers in the city centre market. Developers are marketting new builds in comparative areas at 165% of the price of resales on like for like units. It is simply a matter of buyers not doing their homework. Buyers get taken in by the marketting bull, and do not see that no matter how nicely dressed a unit is, it is still in general only worth around the same as another one close by in terms of £s per square feet.

Even investment groups seem to be getting stung in this way. The principle seems to be that getting a 10-20% discount from the developers price on a bulk buy will make it a good deal. Even then they can be still paying 20% over the odds.

Regards

Dan (Bought and sold and bought again in this market as owner occupier)

Share this post


Link to post
Share on other sites

I think I've seen that Newspaper story elsewhere on the forum some months ago - it is dated April 2006 afterall.

At the end of the day, the "situation" that this "poor" couple find themselves in is reflective of the problem with a rampant bull market.......greed. They have only "lost" 20K or their deposit if they sell the flat now. If they actually choose to live there and use it as there home, the value is almost irrelevant (assuming the lender does give them what they need of course). They should just sit it out for 5 years or so and wait for the value to rise again. They are still young.

Share this post


Link to post
Share on other sites

Which paper was it - I have looked at the Evening Mail (that includes the Post and Mercury) they are all very upbeat about property prices

I know Birmingham well and am interested in the market as I have a business there

They are still building in the City Centre and are want in excess of £300k for some of the better places

The bizzar thing in birmingham city centre is that ppl even consider the new builds when there are loads of less than 5 year old resales available for 20-50% cheaper on a like for like basis! Buyers should really do their homework! Even a so called good deal with a developer could leave a buyer majorly out of pocket.

Orion Building (completed 2005-2006 next to mailbox and a main road but good views): 850sqft 2 bed 2 bath £385,000 (New Build)

Holliday Wharf (completed 2006 next to mailbox and very overlooked): 900sqft 2 bed 2 bath £390,000 (New Build)

Centenary Plaza (completed 2003 also next to mailbox with good views and not overlooked): 900sqft 2 bed 2 bath £250,000 (When was New Build)

Centenary Plaza (completed 2003 also next to mailbox with good views and not overlooked): 900sqft 2 bed 2 bath £180,000 (Resale)

The resale prices here are generally around 2001-2002 levels for bog standard 1 and 2 bedroom flats. This part of the market has been experiencing a bubble since then, and still is.

Edited by Dan In Bham City

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.