Flat Prices 'now Trailing Houses'

[sossij]

http://newsvote.bbc.co.uk/1/hi/business/6267588.stm

"In the first quarter of 2007, flat prices in nine out of 10 regions fell below those of houses."

Edited July 4, 2007 by sossij

[Guest KingCharles1st]

http://newsvote.bbc.co.uk/1/hi/business/6267588.stm

"In the first quarter of 2007, flat prices in nine out of 10 regions fell below those of houses."

I dont know what you do with some people- I mean, a bullet is too good for him.

[sossij]

I dont know what you do with some people- I mean, a bullet is too good for him.

Hmmm, I think he means the rate of increase of prices, rather than the actual prices themselves... heh heh, it would nice if houses were cheaper than flats

Edited July 4, 2007 by sossij

[Orbital]

I found it bizarre that they come so close in price in the first place. Having lived in both, houses are sooooo much more pleasent. You get a garden, more space, more room, and you dont have neighbours next to you above you and below you. I even lived on a 2nd floor once - never ever again! Moving in (and thankfully out again) was a total nightmare, and then when you forget something you have to go alllll the way back up again. Moved into rented houses after that one (before buying).

But where I live you can buy flats for as much and sometimes more than nice 2 or 3 bed terrace/semi houses. You have to hand it to the marketing men - they've done their jobs well. But no doubt flats will be the first to drop quickly and fast - which will be nice if you are an FTB looking for a flat.

I also sometimes wonder if people just assume flats are the cheapest and exclude themselves from considering houses. I see this attitude a lot on this board. People pick out the worst overpriced properties and seem reluctant to accept any thing else exists.

edit: point in case, the above posts. Yep some houses are cheaper than flats where I live. The flats are pretty average but they are labelled "luxury" or "prestigeous" or the old classic - "penthouse"!

Edited July 4, 2007 by Orbital

[Guest KingCharles1st]

Hmmm, I think he means the rate of increase of prices, rather than the actual prices themselves... heh heh, it would nice if houses were cheaper than flats

I really pity the poor ******* who get caught in flats when the negative equity trap springs...

[thedebtisreal]

I found it bizarre that they come so close in price in the first place. Having lived in both, houses are sooooo much more pleasent. You get a garden, more space, more room, and you dont have neighbours next to you above you and below you. I even lived on a 2nd floor once - never ever again! Moving in (and thankfully out again) was a total nightmare, and then when you forget something you have to go alllll the way back up again. Moved into rented houses after that one (before buying).

But where I live you can buy flats for as much and sometimes more than nice 2 or 3 bed terrace/semi houses. You have to hand it to the marketing men - they've done their jobs well. But no doubt flats will be the first to drop quickly and fast - which will be nice if you are an FTB looking for a flat.

I also sometimes wonder if people just assume flats are the cheapest and exclude themselves from considering houses. I see this attitude a lot on this board. People pick out the worst overpriced properties and seem reluctant to accept any thing else exists.

edit: point in case, the above posts. Yep some houses are cheaper than flats where I live. The flats are pretty average but they are labelled "luxury" or "prestigeous" or the old classic - "penthouse"!

Flats are so expensive because that's what the BTLers are buying. I don't know one BTL that has bought a house, none.

[Guest Cletus VanDamme]

Flats are so expensive because that's what the BTLers are buying. I don't know one BTL that has bought a house, none.

TTRR buys houses. Sensible chap I think, he'll be one of the few (relatively) recent entrants to BTL that escapes this pretty much unscathed I reckon.

[thedebtisreal]

TTRR buys houses. Sensible chap I think, he'll be one of the few (relatively) recent entrants to BTL that escapes this pretty much unscathed I reckon.

Ah-ha found one! I knew there had to be someone somewhere.

I'm getting a bit of grief from the missus boss' this week. I need to go four times joint IO! His BTL property has made 20k in two months. He's bought a two bed flat, above a shop on hammersmith high street for £250k, just below the stamp duty.

[skomer]

But where I live you can buy flats for as much and sometimes more than nice 2 or 3 bed terrace/semi houses. You have to hand it to the marketing men - they've done their jobs well. But no doubt flats will be the first to drop quickly and fast - which will be nice if you are an FTB looking for a flat.

I also sometimes wonder if people just assume flats are the cheapest and exclude themselves from considering houses. I see this attitude a lot on this board. People pick out the worst overpriced properties and seem reluctant to accept any thing else exists.

In the last HPC, early/mid 1990's, it was common for FTB's to go straight in and buy 2 or 3 bed terrace/semi's, thus depressing demand for flats even more. This was certainly true of the south coast at the time.

[Englebert]

Who wants to live on the 15th floor of a block of flats anyway? A muggers paradise.

[joey]

If getting into appartments always best to buy in a low size complex minimum of say six and be in a good area and high owner occupancy .(You can spot the BTL strongholds by a mile now hundreds of For Sale signs in the same street). The reasons why appartments loose value alot more in a crash is that if there is a reposession in a large block and it sells for peanuts it drags the rest down with it as they are all the same. Also during the last crash you had quite a few selling in a large complex dragging the price down lower. Houses are harder to tell as there may be an extra room, extension, ensuite. Basically even in London duiring the last crash it wasn't uncommon to hear prices fall from 100K to 40K/50K in the appartment world. Now everyone has got access to Nethouseprices.co.uk you can see the values even better visit your local auction clearance house.

Presently up North I am seeing alot of new build appartments bought by Southerners off the plan in the middle of nowhere. These were primarily bought to flip but were worth less than their sale price on completion and noone is touching them with barge pole. They are stuck with them and trying to rent them out which is another challenge.

[booboohoo]

Most houses in the area I live in (West London) are in need of a major overhaul and a complete gutting. On a cost per sq ft basis houses are going for more than flats in this area. Forget a garden most flats have balconies that are larger. I appreciate that this may not be the case outside of London but within London flats are often a better buy.

[Smell the Fear]

BBC London news covered this story, illustrated with an example.

Young lady, bought a flat in surrey a few years ago. Now trying to sell, can't get what she paid for it. She has bought a new house, and is renting the flat out even though the rental income doesn't even cover the interest on mortgage for the flat.....

Disaster looms.

[Smell the Fear]

duplicate post. What is wrong with hpc.co.uk? It needs a kick up the technological ar se!

Edited July 4, 2007 by Smell the Fear

[FernandoMorientes]

Houses go down as well as flat's and don't think they won't get clobbered in London they will, it's a hive of specualtion just as the last HPC was.

TTRR buys houses. Sensible chap I think, he'll be one of the few (relatively) recent entrants to BTL that escapes this pretty much unscathed I reckon.