There is £4bn worth of new build property that were to be sold to unsuspecting first time buyers and novice but to let landlords which are now for sale at bargain prices from distressed builders.

Even at big discounts at 35% off today's RICS is still not cheap enough.   Since the builder or even worse the administrator have only professional property investors as their potential buyers they are going to have a hard time in 2009.

Why?  Because we like a bargain!  Especially in this climate.  You can now look at these flash looking apartments in city centres as yours, as they soon will be.  When the yields start hitting 9% the professionals will crawl back and start buying.  Not apartment by apartment but BLOCK BY BLOCK!

I bought a couple of blocks back in April 2007 and Septemebr 2007.  Only small blocks (16 flats and 12 flats) but I certainly did not pay 2007 prices.  I paid £56k each for the 1 bed flats and £77k for the 2 beds.  They were not great yields but boy am I glad I got them.

These flats have no voids and very little rent arrears.  They rent out at around £350 each and the mortgages are around £140 and are set to fall.

These blocks are cash cows and we will be getting them by the block load.  Another good thing is these blocks are not going to be built for a long time.  There will be a few springing up but there will be nowhere near the government target of building 250,000 homes per year.

Lowering supply and the same demand for property means increasing prices.  As long as the finance comes back which I am sure it will (since we had over 25 mortgage offers for our clients last month in this climate!) then it will be bargain city like we have never seen before.

If you want to get involved become a client of The Ahuja Group for life to ensure you get these bargains as they become available.

Ajay

 

 

Posted on: 2nd Jan 2009