Sunday, March 29, 2009

More bad news for property ‘investors’

UK developers ready to take defaulting property investors to court

Developers in the UK are drawing up contingency plans to deal with an expected increase in real estate investors defaulting on payments for off plan properties including taking them to court. Developers are worried that investors who put down deposits on properties a year or more ago will either discover they can't find a mortgage to cover the balance, or will be prepared to lose their deposits rather than put themselves straight into negative equity. Builders are also looking at lobbying the Government to make up the shortfall for first time buyers.

Posted by little professor @ 06:19 PM (926 views)
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2 thoughts on “More bad news for property ‘investors’

  • Grillsbears says:

    “According to the House Builders Federation many developers may have to resort to slashing prices to keep off plan buyers interested. But builders are also looking at lobbying the Government to make up the shortfall for first time buyers and considering suing investors who don’t pay.”

    They are going to ask the government to give them money to maintain prices out of the reach of genuine first time buyers by using first time buyers taxes?

    These guys are comedy gold.

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  • It is often said that Britain follows on from America. More recently we have seen Housing prices tumble, Banks collapse, Stock markets almost halve in value. This all brings me to my next point.

    The New home Developers in England are getting hit hard where it hurts in terms of share values and also by the future sale prices expected from all their poor quality housing stock. (Shares are valued on expected future earnings anyway)
    I was driving through Arizona and Nevada for a few months late last year partly for a holiday and partly looking at properties.
    Therer are so many sub-divisions which are between 10% and 50% completed in Arizona, 4 and 5 bedroom houses being sold for around $100,000 or even less. Even some builder offering “buy 2 houses, get cheapest one free”
    This will probably happen here sometime in the near future with new home builders going to the wall (excuse the pun!) and half finished estates, where yes you can buy a nice cheap house but you will be living on a building site for 5 years or more.

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