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darrude

To Buy Or Not To Buy?

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I know of an apartment which 18 months ago the cheapest in the block were selling for 200K, There is one now, which the equvilant ones were selling for 250K (18 months ago), where the sale has fell through due to the buyer pulling out, the price accepted 160K (currently on the market for 180K) and the seller is increasingly desparate to sell.

how many think this is a bargin, how many would say, not selling only going to drop.

Thoughts and Antedotes appreciated.

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I know of an apartment which 18 months ago the cheapest in the block were selling for 200K, There is one now, which the equvilant ones were selling for 250K (18 months ago), where the sale has fell through due to the buyer pulling out, the price accepted 160K (currently on the market for 180K) and the seller is increasingly desparate to sell.

how many think this is a bargin, how many would say, not selling only going to drop.

Thoughts and Antedotes appreciated.

It depends on its location - and size, if it is in London then it is probably a bargain but if it is in the real world the probably still a bit pricey.

Personally for £160,000 I would expect to buy a small house with garden for that (not that I can afford it)

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I know of an apartment which 18 months ago the cheapest in the block were selling for 200K, There is one now, which the equvilant ones were selling for 250K (18 months ago), where the sale has fell through due to the buyer pulling out, the price accepted 160K (currently on the market for 180K) and the seller is increasingly desparate to sell.

how many think this is a bargin, how many would say, not selling only going to drop.

Thoughts and Antedotes appreciated.

Yer go for it follow the sheeple if they say its cheap it must be :P

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I can't substantiate this with links, but reading around, I've read quite a lot of instances where brand new £250k flats end up selling at £160k.

So, on that basis, it's actually lost nothing except what it was due to lose under "everything's normal" conditions.

So, if you want the flat, then buy it.

But I'd be thinking it wasn't THAT much of a bargain - and if you are a bear you will believe that the £160k is the "actual/true price for a 2nd hand flat of that age/type" and that there are bargains to come in the future on others.

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and the seller is increasingly desparate to sell.

This is the key phrase. There will be plenty of others in this position before long, particularily in the BTL/flat sector. Why not wait for a couple of months and see what happens? There isn't exactly a shortage of flats being built around the county.

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This will be the decision that many of us will face over the next few years. As someone who is old enough to have bought and sold many properties over the years I'd advise you to look any property gift horse very, very closely in the mouth!

I start from the assumption that in almost every UK price band and every UK region there's roughly 10% of the properties that are really good, 60% that are average, and 30% that are problem properties. Take a single street in a decent area and look at number one, on one side of the street, and number two, on the other side of the street. They're both in the same location, both have the same access to public transport and civic ammenities, and both fall in the same school catchment area. Consequently, in today's market they're a similar price.

But number one has a south facing garden overlooking open land, where as number two has a north facing garden that's overlooked by other properties. They both have central heating, but number one had the boiler replaced two years ago, where as number two has an uneconomic twenty year old boiler. Number one had an extension by a quality local builder but number two had an extra bedroom grafted on by the DIY disaster owner and his semi-competent father in law. I could go on and on, but you get the picture.

Let's say in today's market number two sells for £200k and number two sells for £220k. But if the market drops 20% these two properties won't fall equally. In a tough market number two will be very difficult to shift and will drop say 25% to £150k, where as number one will still be an attractive property and will only fall 15% to £187k. The trick of course is to find the rare examples of number one type properties that have taken the full 20% hit in price.

It's tempting to think that a house price crash is a buyer's paradise. But as someone who lived through the 1989-95 crash I can tell you it's not. The quality properties within any price band become quite scarce or bogged down in endless chains, and you still need patience and dilligence to find the real bargains.

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