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dude wheres my house

Been Offered A Flat At 10% Below Valuation

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I have been offered a stunning flat at 10% below valuation from a family friend.

If prices where going to stagnate or rise i would buy it in a second.

I dont know what to do, on this site it is easy to be ultra bearish and shout on about the impending crash but now i am talking about a real house, with a real mortgage and a real chance to change the way i am living (still with parents)

In my head i know this would be a really stupid thing to do, but the urge is still there to get my own pad.

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Personally, in a heartbeat. I would feel the 10% was reasonable enough insurance against drops for what would be a great benefit to your life (as long as it's well within budget).

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are you sure its 10% below? Check sold prices for the area... advertised prices are at least 10% above the selling price, would he go lower? It is possible to buy well below the average selling price for an area

Edited by moosetea

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If you can afford it, and want it then yep. Dont just buy it cos its cheap if you dont actually want to live there! Similarly dont not buy it because property might drop in value. Things go up and down all the time, its now a recognised cognitive phenonmenon that people dont like commiting to something when conditions are unknown. Yet people are blind to this trap and will refuse to buy something that they actually want simply because they dont know what will happen in the future.

Either you want the place, or you dont...

if you buy it, accept the fact that you are probably losing a 'family friend'.

didnt the friend offer it...

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I have been offered a stunning flat at 10% below valuation from a family friend.

If prices where going to stagnate or rise i would buy it in a second.

I dont know what to do, on this site it is easy to be ultra bearish and shout on about the impending crash but now i am talking about a real house, with a real mortgage and a real chance to change the way i am living (still with parents)

In my head i know this would be a really stupid thing to do, but the urge is still there to get my own pad.

It's a flat. In the medium future nobody will want city flats, as peak oil kicks in and a subsequent flight to a more agrarian lifestyle takes preference.

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if you buy it, accept the fact that you are probably losing a 'family friend'.

Are you aware that you are being slated on **** by somebody under the name of 'Big Al'? That forum seems to carry a lot of ex-HPCers with a grudge. I read and post there occasionally but there is little in the way of lively discussion. Just thought I'd let u know.

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Personally, in a heartbeat. I would feel the 10% was reasonable enough insurance against drops for what would be a great benefit to your life (as long as it's well within budget).

I suppose it depends on what part of the country you are from.There have been threads re. the East Midlands showing falls on flats by as much as 40%.The over-supply of flats here is taking its toll on the prices.Nor are things getting any better,that 2026 study showing house prices soaring to 10 times earnings showed an under-supply in every region except the East Midlands which would have a chronic over-supply.Here in Nottingham the brown field sites for redevelopment are inexhaustable but there is no one to live in them.

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I'm curious - what is stunning about this flat ? Don't tell me - it has laminate flooring and brush chrome fittings ?! Why would someone 'let you have it' for 10% BMV ?

IMHO you'd be making an enormous mistake. I believe research has shown that flats have at best held their value for the last 3 years and have fallen in many areas. They will be the first to go when prices start to slide and they have a very very long way to go before they reach a realistic market value. Flats for 300k plus is just plain absurd - they cost about 40k to build - even the stunning ones!

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I'm curious - what is stunning about this flat ? Don't tell me - it has laminate flooring and brush chrome fittings ?! Why would someone 'let you have it' for 10% BMV ?

Bigger than most flats i have seen

Built inside a renovated Listed building

In a conservation area with mature woods around, in the city but feels like the countryside.

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I reminded of that ol saying "House are for nesting in not investing in" which I am sure will become fairly common parlance before long.

If you love it buy it, but beware, house prices can fall as well as plummet.

Edited by Timil

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Bigger than most flats i have seen

Built inside a renovated Listed building

In a conservation area with mature woods around, in the city but feels like the countryside.

Check out the service charge,can be a lot of variation depending on if the leaseholders are managing it themselves(£200 pa) or a management firm such as an EA are taking leaseholders for a ride (£2000pa.)

Edited by crashmonitor

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Guest DissipatedYouthIsValuable
I have been offered a stunning flat at 10% below valuation from a family friend.

If prices where going to stagnate or rise i would buy it in a second.

I dont know what to do, on this site it is easy to be ultra bearish and shout on about the impending crash but now i am talking about a real house, with a real mortgage and a real chance to change the way i am living (still with parents)

In my head i know this would be a really stupid thing to do, but the urge is still there to get my own pad.

Wait a bit and get 50% off.

I make it a point to always question the nature of apparent gift givers, but then I'm a cynical *******.

Just because you feel he is doing it to be nice, ask yourself, is he actually desperate to get rid of the flat without any regard for whether this will ****** you up financially.

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I have been offered a stunning flat at 10% below valuation from a family friend.

This whole issue revolves around these words " below valuation". You don't explain what "valuation" this is. The truth is that the only true valuation is when a willing seller and a willing buyer agree a figure. I assume that your "valuation" isn't one of these. If you are really satisfied that your family friend wants to gift you ten, twenty, thirty thousand pounds (you don't name the figure) then I imagine you don't want to look a gift-horse in the mouth. (You could, of course, take up your friend's offer and immediately sell it for a 10% profit! Do you think that would be possible? If not, why not? Would it be because you're not convinced of making 10%?) However, if you've been sitting on the sidelines waiting for the expected 'correction', then you have to ask yourself "What's changed?"

p

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I have been offered a stunning flat at 10% below valuation from a family friend.

If prices where going to stagnate or rise i would buy it in a second.

I dont know what to do, on this site it is easy to be ultra bearish and shout on about the impending crash but now i am talking about a real house, with a real mortgage and a real chance to change the way i am living (still with parents)

In my head i know this would be a really stupid thing to do, but the urge is still there to get my own pad.

I would consider now alot of the asking prices are 10% overvalued and being a falling market I would be looking at 20% below asking price. Flats are alot more susceptible in a crash, especially if you are a new build estate with loads of the same properties. One reposession could bring down the prices 50 %. Usually a block 6 flats with no similar ones in close proximity are a safer bet. Do your homework. What have other flats in your area been doing, also 2 to 3 bed properties. Have asking prices come down. Don't be scared of doing viewings you have no obligation to buy also you can back out of a deal until contracts are exchanged, with prices dropping you will be seeing alot of people pulling out. Unlike the boom where properties had only to be on the market for 5 minutes before they were sold now properties are staying on the market alot longer. Check nethouseprices.co.uk alot of properties since 2005 havn't moved in price also propertysnake.co.uk for price drops in asking price.

I am currently seeing drops in prices in a few months that would have taken a couple of years during the late 80s and early 90s just showing how much the UK market is overpriced due to easier loans and the speculator market. Be warned a valuation now, you may have to wait 15 years before it returns to that price.

Edited by joey

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