UK Landlord Forum / Life

you should never buy flats it's the worst investment in fact i wouldn't call it a investment just a building in which you paid a lump sum in advance rental...

why the flats will drop in price by another 28% within the next 12 months.

i will cover more tomorrow..

bye

Hmm...not sure i completely agree.
But I must admit, I prepare freehold properties.

Cant say I really agree either. The first property my sister bought was a flat, she sold it without spending to much on it ( just decorating) within about 18months. Selling it for about £25,000 more.

This really helped her then move up the ladder to a terraced house, and i know she couldnt of saved that amount of money within such a short period of time.

However I do hear what you mean. I viewed afew flats on a new development at £105,000. That was two years ago they are all selling for roughly 80k at the most. So im glad i didnt buy! However i bought a terraced house instead did it up, tried to sell it..... Its probably worth about £5,000 more than what i bought it for and i spent £11,000. So I think right now and for afew years to come its risky to buy any kind of property. Though there will always be a huge market for flats.

Hello,


From investment purpose flats are not good options, if you are planning to live in it then it is ok, otherwise it is advisable to invest in land or some commercial property, but commercial properties are also not very promising.


Regards,
sarah_9

Southern Maryland Real Estate

Don't agree with that at all. My brother-in-law has made a complete killing on flats/apartments. If its in a the right location they can be just as profitable as houses.

Sorry but I can't totally agree with you that flats are the worst property investments out there. Depending on the location, you can actually make a killing by investing in a flat. It is also easier to sell than other houses and a fast turnaround is what you want when it comes to investing.

However you do have a point that the price of some flats would drop drastically in the next few months. That is why it would be wise to invest in flats in places with a strong market.


James
http://www.propertyinvestmentgurus.co.uk/

Not sure about flats being the worst ever investment - they can appreciate over time... On the other hand I agree with you that ant property where you don't own the freehold is always a risk because the management company can hike up the service charge at almost any time or worst - the roof needs changing and you're quids out before you know it...

Tim

My two-penneth............
Flats in the North of England can be bought with the greater part of 999 year leases to run, a peppercorn groundrent and no maintenance costs. The ground floor flat is responsible for drainage and the uppermost flat for the roof. There are thousands of these properties.  I bought one built in 1896 for not much over £20K in 2000 and its worth £80K now. Rents haven't fallen but have gone up by 15% in 10 years.
Like all property its location, location, location.....as the TV program goes. New flats tend to be pricey, maintenance costs can be high and they allow little room for improvements. Victorian flats can be solid and good for another century. Just make sure you have a good survey done before you buy. Concentrate on single flats with one or two bedrooms rather than bigger houses converted into HMO's.

Thinking from the realtors point of view they know what it takes to sell a house. They know where they can cut corners and get away with it. I suspect that the old time experienced buyers who are cashed up are cherry picking property they like, and that everyone else is stretched with no borrowing ability.