A friend of a friend thought he would invest in a city appartment and approached the developer about a year ago and managed to negotiate the sale of one of the planned appartments, at a 'discount' which were due for completion in september 2007. He paid a £35k deposit. and the projected selling price was to be £235k.
Now with a lot of construction projects the completion date has been delayed and is now March 08.
Another similar devlopment close by has been recently completed and despite a reduction in asking price none of the appartments have sold.
The friend of a friend contacted the developer of the completed appartments to be told that he could have one for £190k. That's already a potential £45k loss he is currently looking at and he still has 3 months to wait before he takes possession of his depreciating assett.

DOH!

New-build apartments: Never really a good long-term investment as I posted on the main thread.

Given the disgraceful quality of some that I've seen, I have wonder if many aren't destined to become the slums of tomorrow. You'd think that in a sustained property boom where flats are selling for silly money that the builders could afford to take their time and do a good job. Instead, greed kicks in and they slap them up as cheaply and quickly as possible while asking top dollar.

Very true, look at this poor effort. I only assume its on for 250k. In Ballyhackamore!
http://www.propertynews.com/brochure.php?r...;p=BTWBBTWB0110
You would have thought they could have integrated the fridge instead of pushing in that cheap Currys effort. A breakfast bar might have helped break up the room and why is the sink below the window in the bathroom. How is anyone going to shave? Plus a toilet would be handy!
And this is penthouse luxury living?

One of the pictures has a caution sign outside the apartment block - very apt indeed. Heard on the grapevine - one of the largest but definately the most successful construction companies and developers has entered into involunary liquidation at the end of last week for some of its holding companies, allegedly. I will say no more on this until it becomes published. If it is the case it will be surprising, huge news!

The other problem your friend of a friend will have is that come completion time, the builder will come knocking on his door for the remainder of the contracted £235k. As lenders have drastically cut back the LTV's they are prepared to lend on new build Apt's, your friend might have to fund quite a further amount from his own available funds before lender will approve loan poss only 65% LTV. As the lenders valuer will also be aware of price falls of the market + develpment, plus local competing prices, he/she may recommend that the lender doesnt even touch it, leaving your friend of a friend unable to complete..

Not sure what happens in that scenario, can he just put his hands up + say 'can't pay' + surrender his deposit and walk away breaking contract?

The "bog" as its called round here is just visable on the right of the picture....

Aside from that, yes a shocking build. Those shoved in white goods, really scream cheap and nasty.

A snip @ 1/4 million.

Well if you want 'apartment' living come to the metropolis that is Lisburn (no hotels allowed!). Oh so many are going to get burnt in the flat market here.

Even with the crazyness you can get three bed houses for less then most of the 'apartments' listed here!
325k for a 2 bed apartment because it is 2 mins walk to the station!

http://www.propertynews.com/results.php?s=35489319&p=1

Pay an extra 25k and you can get a 4 bed house but its a 10min walk further! Oh the decision!
http://www.propertynews.com/brochure.php?r...mp;p=FDPFDP2123

utter madness

look what you can get in Notts for 125k - where wages are higher incidentally

http://www.rightmove.co.uk/viewdetails-180...=1&tr_t=buy

edit - this is bang in the city centre as well

if they had that over here I'd buy it ...but they dont

Thanks. Please let us know when it is reported in the media.

Don't forget service charges within apartments for depreciation and maintenance. Also lifts etc have to be replaced as well as serviced annually, with monies set aside in a sinking fund. An apartment purchase in a rationale market against the purchase of a semi or terrace is always a zero based argument. Will keep you informed Tara but it is going to be major if true. One of the biggest caught out in land banking and the interest rollover no longer allowed by the banks - £100m’s involved.

I drive past this everyday - it dosen't look any better from the front either. £250K is a f***ing joke for this property, even if it is on the Sandown Rd.

Notts must offer good value for money. In the TONITE show special shown last week the young FTB got a well presented semi-detached for 122K with front and rear garden - for that sort of money you can buy a skanky terrace in Belfast - if you're lucky. Properties here are seriously over-valued.

http://www.propertynews.com/brochure.php?r...mp;p=CPCCPC1302

If this is such an 'ideal investment opportunity'why is this E.A. off-loading it now? Mmmm, I wonder. What is a "kitchen air gap to bathroom area" anyway?

Sounds like you can pop in for a dump while watching the dinner cook

Edited: Maybe best to keep rumours off the forum.

LOL..smells like ...err..Chicken Tonite?

Allegedly a developer had to be removed from a bank by police - the sum in question loaned by the bank - 70mil.......

Also allegedly a number of developers have been told that if things do not improve by March 08 the banks will move on them....

Are these two stories linked by any chance?

No - as I am led to believe there are a number of developers / builders that are allegedly in trouble and had been before Christmas.