Manchester City Centre Flats in Freefall

[ringledman]

What are people seeing on the ground in Manchester with the market?

I think the credit crunch and oversupply in the city centre is having a huge effect on apartment prices.

http://www.guardian.co.uk/money/2008/mar/25/houseprices.housingmarket

How boom quickly converted to bust

Repo man comes calling at former mill's flats bought at the height of rush for riches

• <LI class=byline>Robert Booth <LI class=publication>The Guardian,
• Tuesday March 25 2008
  
  Text of copyrighted article removed by moderator!

 

[Martin77]

Interesting. Cash is king. I predicted that already last year. Anyone who has read my posts knows that I have been bearish.

But if you look again at some of the maths now based on the article:

> an Albion Mill flat which sold for £171,000 in December 2004 went at auction for £87,000. In February, another valued at £219,950 in June 2005 fetched a highest bid of £110,000.

Rent of 800 is quoted (if you can find someone) but even assuming undercutting the market by going at 600 per month @ 10 months a year to ensure income.... and you can pick it up and furnish it for 100K

yield = 10*600/100000 = 6%

Now those are starting to look like very reasonable investment yields all of a sudden if you can buy now for cash at auction, and avoid the whole block/neighborhood going into decline.... and of course wait it out for the long term. There'll come a day when you can remortgage it and get your cash back out. Better take a cold shower before I sound too much like a rabid bull property agent.


[edit] after a bit of detective work: the two 2 bedroom flats mentioned on the reedsrain website in Albion Mill sold at auction yesterday for 111 and 113K pounds respectively.

property site:



auction site:
Lot 298 Guide price 100K, result 111K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=307
Lot 299 Guide price 100K, result 113K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=308

here's a fact based report showing trend development over time: http://www.auction.co.uk/pdf/resi/RAPID_2007_2.pdf

Doesn't look like the trend in repossessions has peaked yet.
I'm gonna wait just a little longer to see how far this goes.....

 

[Maine]

Interesting. Cash is king. I predicted that already last year. Anyone who has read my posts knows that I have been bearish.

But if you look again at some of the maths now based on the article:

> an Albion Mill flat which sold for £171,000 in December 2004 went at auction for £87,000. In February, another valued at £219,950 in June 2005 fetched a highest bid of £110,000.

Rent of 800 is quoted (if you can find someone) but even assuming undercutting the market by going at 600 per month @ 10 months a year to ensure income.... and you can pick it up and furnish it for 100K

yield = 10*600/100000 = 6%

Now those are starting to look like very reasonable investment yields all of a sudden if you can buy now for cash at auction, and avoid the whole block/neighborhood going into decline.... and of course wait it out for the long term. There'll come a day when you can remortgage it and get your cash back out. Better take a cold shower before I sound too much like a rabid bull property agent.


[edit] after a bit of detective work: the two 2 bedroom flats mentioned on the reedsrain website in Albion Mill sold at auction yesterday for 111 and 113K pounds respectively.

property site:



auction site:
Lot 298 Guide price 100K, result 111K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=307
Lot 299 Guide price 100K, result 113K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=308

here's a fact based report showing trend development over time: http://www.auction.co.uk/pdf/resi/RAPID_2007_2.pdf

Doesn't look like the trend in repossessions has peaked yet.
I'm gonna wait just a little longer to see how far this goes.....

Could never understand the prices that were being achieved in North of england, it was simply massive multiples of income and speculation as the salaries were not there to support.

Why buy an apartment in Manchester for £250k in 2004 & 2005 when you could buy an apartment in central London at the same time for maybe £25k more and a city with a completely different economic power