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Saturday, April 25, 2015

A tale of two properties

The general consensus is that property prices apart from in central London, where prices have rocketed have just about recovered their values since the crash. I can prove that actually not only have there been huge variations in property prices based on the part of the country you may have brought in, but also the types of property and the part of the same city.

As they say, a property investor makes their profit when they buy not necessarily when they sell.

Apartment 18, Bloomsbury Court, Beck Street, Nottingham, City Of Nottingham NG1 1DG


The first property is a 3 bedroom city centre apartment. We know that it has changed hands 4 times over the last 14 years and prices paid are as follows according to the Land Registry:

2001 26 Nov - £177,350
2004 18 Jun - £195,000
2006 24 Nov - £124,999
2014 2  Sep - £115,000

LOSS of 35%

180 Rutland Road, West Bridgford, Nottingham, Nottinghamshire NG2 5DZ

2001 22 Jun - £105,000
2005 27 May - £183,500
2011 3 Jun - £240,500

GAIN of 129%

Same city, same size (3 beds).  One of the property's is showing a loss of 35% and in the same period the other has grown by 129%. 

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saddat abid said...

I am not surprised apartments do not inspire own buyers. They attract tenants 6 months at a time. Not so good to take a loss.

Anonymous said...

It looks like the apartment was bought new in 2001, and well overpriced for the time. But hey, it is an apartment in a big city centre. Easy to overprice it. Just look at London.

Later it was either repossessed in 2006, or used in some tax avoidance scheme. 2006 had property prices sky rocketing. We would see huge losses like that in 2008/09, but not in 2006.

Now everyday that passes worth less because of the leasing. I bet original leasing was 100 years and freeholder is charging a lot to renew now. Banks don't like to do mortgages for short leases... so the value goes down the drain.