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What is likely to happen to property prices and rental income if a bunch of nice new builds are built in a slightly dodgy area?
Is it likely to increase or decrease the price of terraced houses? These new build look like they will be priced above the equivalent bed houses I'm looking at..
New builds can help improve an area, but are often over-priced due to being shiny and new.It can, however, be an indication that the area is on the "up" as developers do intense due diligence before committing to new developments. They must believe that there is a appetite for their product.Overall, I would say it is positive as long as there are not too many newbuilds that it causes over-saturation.At the very least, they may help stabilise prices or slightly increase the value of existing stock and they may also highlight what good value existing houses in the area are.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
New Builds sell because of Right to Buy so FTB buy them
My own personal experience is New Builds are over priced an when buyers come to sell them. They then find out the real Value !
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
I think you mean HELP to buy...?
I bought a new build 2.5 years ago for £265k, one neighbour sold a few months back for £310k and my immediate neighbour has hers on the market for £325k.
However, I'm left wondering why my neighbours don't like me.
History shows that UK added 2/3rds to original housing stock over past 50 odd yrs (extra 10 million homes). Despite a 10 million pop increase that lowered average occupancy rate by around 30% - down to 2.4 persons per home today on average across the 3 main tenures.
Although logically that should have lowered property prices the opposite happened - they continued rising in nominal terms - although there were a few periods in the interim when real prices fell allowing for background inflation.
Thanks for all the responses so far - very useful!
This thread may shed some further light:Anatomy of a property hotspot - 12 indicators
Generally, there is always a big risk with too much new build, especially where a developer under Help to Buy (Yachts for Big Housebuilders' Directors) is building v large amounts of new build apartments.
This article I wrote at one of our blogs recently explains how to avoid this.... and why we prefer to buy houses not flats..... (Hint: God created unlimited sky for Mr Persimmon and Mr Barratt to build into, but the amount of land is limited#
Unbiased, independent consultancy for private landlord and resi investors
Author of two books for landlords
#Actually, in some earthquakes more land can be created. Island of Sumatra is now about a foot higher post tsunami and earthquake of 2004, but you get the point!