This sorry tale from the Daily Mail tells of a Leeds new build flat that was sold for £238,000 two years ago and has just sold at auction for £71,000.
That is a record drop to my knowledge, of 70%.
Can anyone beat that?
As many 'pundits' have been saying, "you can't go wrong with 'bricks and mortar'."
I think this finally shuts up the salesmen and barrow boy pundits who have appeared over the last couple of years.
I just hope the poor investor didn't buy any others.
BTL RIP?
or BTL TTFN?
or BLT, cappucino and a packet of Mcoys Beef and Onion, please.
I bought an apartment in Ipswich through 1st Property Investment - who guaranteed to find "the little nuggets of gold" in 2005.
ReplyDeletePromised rental value of £1100pcm and capital value of £250,000.
It's now worth £140,000 and rents at £625 pcm.
1st Property Investment still maintain it was a sound investment.
If thats a sound property investment then I really am a half man / half bird thingy.
ReplyDeleteThat's a painful situation to be in, do you keep or sell the property investment?
Presumably you are having to find money to subsidise your mortgage repayments?
The problem is that at £140,000 with a £625 rental it is still a fairly low rental yield.
We are going to be looking into city centre values and investments over the coming weeks as regards the investment returns so keep popping back to the site.
For now I would read up on investment fundamentals before you decide to keep or sell this one.
There's loads of honest, factual content on the property hawk site regards this.
I feel your pain as to the promises of rental and capital value. Most of those who appear to be acting as "sourcing agents" make their money up front leaving the punter waiting for a decent return. We need to make our own due diligence before proceeding with these "deals". Rightmove.co.uk is still a good source on historical prices for traditional properties; but there are few comparables with new build apartments. BUT - where an apartment block has been around for a few years there will have been some activity to gauge values by. Digging deep will be influenced by the availability of sensible remortgage facilities - amazingly one of our Mortgage Express mortgages is quite sensible at the SVR as against what is currently available at fixes of 6.99% plus 2.5% fees!!!
ReplyDeleteEach case on its own merits I guess