Should i buy now ?
Discussion
I've seen a new build flat with excellent links to the motorway and amenities near by. The 1 bedroom flats were selling for around £125000 last year and the development has now finished leaving two 1 bedroom apartments left, plus quite a few 3 and 4 which are not moving.
I actually went to see them when i popped over to a friend who rents one a few months back and they're still up for sale at a reduced price of £116,995. They were keen to get rid back then and i think they would of taken £100000 if pushed but that was then and they still haven't sold.
I was going to have a bid at £85000 and see if they will bite but whats in the back of my mind is the fact that most people who would buy these places would probably be on no more than £20000 a year. If the market actually does sort itself out over time then surely these one bed apartments would be only worth £60000/£65000 ?
Would i be grabbing myself a bargain or about to throw £20000 onto the fire ?
I actually went to see them when i popped over to a friend who rents one a few months back and they're still up for sale at a reduced price of £116,995. They were keen to get rid back then and i think they would of taken £100000 if pushed but that was then and they still haven't sold.
I was going to have a bid at £85000 and see if they will bite but whats in the back of my mind is the fact that most people who would buy these places would probably be on no more than £20000 a year. If the market actually does sort itself out over time then surely these one bed apartments would be only worth £60000/£65000 ?
Would i be grabbing myself a bargain or about to throw £20000 onto the fire ?
Edited by Chipper on Tuesday 19th August 14:59
What are the already sold flats renting out for per month?
That should give you a better idea of a realistic value for the property.
If you think it is all £20k per year renters who put in say 1/3 of their net salary to rent that might be c.£400 per month.
But with a £85k BTL mortgage at say 7% you need c.£500 per month to cover the interest.
Perhaps I am just redoing your maths, but £85k sounds too expensive.
That should give you a better idea of a realistic value for the property.
If you think it is all £20k per year renters who put in say 1/3 of their net salary to rent that might be c.£400 per month.
But with a £85k BTL mortgage at say 7% you need c.£500 per month to cover the interest.
Perhaps I am just redoing your maths, but £85k sounds too expensive.
Chipper said:
I've seen a new build flat with excellent links to the motorway and amenities near by. The 1 bedroom flats were selling for around £125000 last year and the development has now finished leaving two 1 bedroom apartments left, plus quite a few 3 and 4 which are not moving.
I actually went to see them when i popped over to a friend who rents one a few months back and they're still up for sale at a reduced price of £116,995. They were keen to get rid back then and i think they would of taken £100000 if pushed but that was then and they still haven't sold.
I was going to have a bid at £85000 and see if they will bite but whats in the back of my mind is the fact that most people who would buy these places would probably be on no more than £20000 a year. If the market actually does sort itself out over time then surely these one bed apartments would be only worth £60000/£65000 ?
Would i be grabbing myself a bargain or about to throw £20000 onto the fire ?
To be honest whether or not it is a good time could be irrelevant, as I can't see any developer accepting an offer of £85k if they are marketing them at £117K. That's almost 40% off.I actually went to see them when i popped over to a friend who rents one a few months back and they're still up for sale at a reduced price of £116,995. They were keen to get rid back then and i think they would of taken £100000 if pushed but that was then and they still haven't sold.
I was going to have a bid at £85000 and see if they will bite but whats in the back of my mind is the fact that most people who would buy these places would probably be on no more than £20000 a year. If the market actually does sort itself out over time then surely these one bed apartments would be only worth £60000/£65000 ?
Would i be grabbing myself a bargain or about to throw £20000 onto the fire ?
Edited by Chipper on Tuesday 19th August 14:59
Scott328i said:
digimeistter said:
Timmy35 said:
Scott328i said:
Timmy35 said:
No.
Why not then?I think the time is credit crunch.
I would imagine the last thing you want to buy is a flat. Give it 5 or 6 years and all of these empty 1-2 bedroomed apartments will be replacing inner city slums as the no go areas.
Benefit scroungers are already being housed in 'exclusive luxury' marina view apartments here and property values have no where near as far to potentially fall in the north east as in some parts of the country.
To landlords once they see that they cannot sell at the profit they projected, income is income, and state income is safer than private.
Benefit scroungers are already being housed in 'exclusive luxury' marina view apartments here and property values have no where near as far to potentially fall in the north east as in some parts of the country.
To landlords once they see that they cannot sell at the profit they projected, income is income, and state income is safer than private.
GuildfordPaul] said:
To be honest whether or not it is a good time could be irrelevant, as I can't see any developer accepting an offer of £85k if they are marketing them at £117K. That's almost 40% off.
It dosent matter. If they are recovering their build cost+ a bit; in the current environment they will be happy. plasticpig said:
GuildfordPaul] said:
To be honest whether or not it is a good time could be irrelevant, as I can't see any developer accepting an offer of £85k if they are marketing them at £117K. That's almost 40% off.
It dosent matter. If they are recovering their build cost+ a bit; in the current environment they will be happy. plasticpig said:
GuildfordPaul] said:
To be honest whether or not it is a good time could be irrelevant, as I can't see any developer accepting an offer of £85k if they are marketing them at £117K. That's almost 40% off.
It dosent matter. If they are recovering their build cost+ a bit; in the current environment they will be happy. Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff