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nick22abdn

Are Old Properties Likely To See The Same Falls As New Builds?

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Just trying to get peoples opinions. We can all see that there has been a vast oversupply of new build flats and people are having problems shifting them at a loss (see post with Telegraph article). However, how affected does everyone think older period properties will be.

By way of example, I will use Aberdeen. The market has grown faster than most other markets in the last few years (nearly doubled in the last 3 years). There has been a large influx of Polish workers and expansion in the oil industry which has undoubtedly contributed to price rises along with all the other reasons (loose credit, BTL etc). Barratts and Stuart Milne have a few developments up here and are asking a ridiculous £300k for a shoddy 2 bed flat at the moment. These will almost certainly lose value, especially as lots have been bought by speculators/ Btl "investors". However, there are also a large amount of flats that are circa 100 years old in granite tenemant buildings. These are very cheap by comparison. My flat is a 2 bed, one of four converted from a large detatched family house 40 years ago. If has a much larger floorplan than the new builds, large rooms, period features, separate kitchen etc and it also done to a much higher spec - solid oak flooring and doors, cast iron firplace, top spec bathroom and kitchen etc. Currently could sell quite easily (market still very buoyant with places selling in 2-4 weeks) for 180k to 200k. Just curious to see how much less affected people think properties like this will be given the current state of affairs.

Before anyone starts slating me for being one of those hated OO's I would like to point out that I am not too concerned by what happens in the market, a fall will make it cheaper to move up to a larger place. I have more than 50% equity and rent for a place done to a lower spec would still cost me twice as much (£800pcm) as I am paying in my mortgage.

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Just trying to get peoples opinions. We can all see that there has been a vast oversupply of new build flats and people are having problems shifting them at a loss (see post with Telegraph article). However, how affected does everyone think older period properties will be.

By way of example, I will use Aberdeen. The market has grown faster than most other markets in the last few years (nearly doubled in the last 3 years). There has been a large influx of Polish workers and expansion in the oil industry which has undoubtedly contributed to price rises along with all the other reasons (loose credit, BTL etc). Barratts and Stuart Milne have a few developments up here and are asking a ridiculous £300k for a shoddy 2 bed flat at the moment. These will almost certainly lose value, especially as lots have been bought by speculators/ Btl "investors". However, there are also a large amount of flats that are circa 100 years old in granite tenemant buildings. These are very cheap by comparison. My flat is a 2 bed, one of four converted from a large detatched family house 40 years ago. If has a much larger floorplan than the new builds, large rooms, period features, separate kitchen etc and it also done to a much higher spec - solid oak flooring and doors, cast iron firplace, top spec bathroom and kitchen etc. Currently could sell quite easily (market still very buoyant with places selling in 2-4 weeks) for 180k to 200k. Just curious to see how much less affected people think properties like this will be given the current state of affairs.

Before anyone starts slating me for being one of those hated OO's I would like to point out that I am not too concerned by what happens in the market, a fall will make it cheaper to move up to a larger place. I have more than 50% equity and rent for a place done to a lower spec would still cost me twice as much (£800pcm) as I am paying in my mortgage.

Now this is only my own 'non-expert' opinion, but I would imagine that it mostly will be down to Location (Location, Location! ;) ) when and if any crash comes. Alot of the new built flats have all been lumped up together with nothing but concrete jungles sprawling as far as you can see.. These will be hit hardest, with cheap new build houses in those same areas next hardest to fall. I'd imagie older flats will be larger, with and be more in keeping with their surroundings, keeping their value more than some others. Then the larger, family houses will be the least affected.

But like I say, only my opinion.

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Depends on how you look at it.

If youre in Tewkesbury I'd say a 3rd floor flat is a better bet than a 3 bed vic terrace.

Most people would prefer the 3 bed though.

The build quality on modern houses is supposedly atrocious but 100 year old houses will cost you more in repairs and energy.

Six of one, half a dozen of the other.

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Guest Cletus VanDamme

This topic has been previously discussed at length on this forum.

The short answer is no.

The longer answer involves looking at the fact that flats rise more than houses in a boom, but then fall back by much more in a bust. Given that 99.9% of new builds are flats (and in undesirable, brownfield/ring road locations), it would make sense that new builds will be hit hard.

However, when sentiment has completely turned against property, look out for some nice old victorian doer-uppers that some old dear has died in, and that most people won't want to touch (particularly with HIPs)

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