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flats don't ever buy

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  • flats don't ever buy

    investors nightmare never buy flats i have never bought any in my 22 years of buying i hate them there not even a investment basically your paying a lump sum in advance to the freeholder....

    flats will turn sour inthe next 14 months losing on average over 25% more on top of already lost and by 2014 they would have lost you over 60% yes you read that right.

    i will go into more detail tomorrow but if you have any questions please ask.

    bye.

  • #2
    I do agree with you to a certain extent. Having a few issues with the management company on one of my flats and also the block needs lots of improvements. Bit of a nightmare at the moment.
    Portugal Property for Sale

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    • #3
      thank you for your reply.
      have you thought of moving in to a house, do you rent or have you bought your flat.
      how long have you been there.

      i have never liked flats they are danager to wealth they are danager to health. you can always buy a nice house for the same price just outside the city with gardens and most important it's yours FREEHOLD.

      when i go past flats they look to me as an open prison nothing more. there is no appeal you can't even take back your girl friend as space is limited.

      now i will tell you all this..... you here and see apartments for sale, apartments tolet etc... but apartments are flats just a nice way of fooling people and i just want to add another note before i finish to nite.

      FLATS were built for 1 purpose and that purpose was for city and county council to house the Poor nothing more. if people couldn't afford to buy a house and they were on the dole living of the government flats welcomed these people.
      now when i see this and you all know that in most cases the flats house single teenage mothers who live of the dole.

      i see you all next time....

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      • #4
        Hm, I never looked at Manhattan or Docklands in that way before!

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        • #5
          We are a working family and we have lived in flats for 7 years now. They have their advantages too, though it depends a lot on what your neighbours are like.
          House Prices in Devon

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          • #6
            If you look at any town centre in the UK - anywhere near a commutable railway line - there is a glut of flats on the market. Most of them are empty - supply and demand dictates that the price of these should fall.

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            • #7
              Originally posted by jonwell View Post
              thank you for your reply.
              have you thought of moving in to a house, do you rent or have you bought your flat.
              how long have you been there.

              i have never liked flats they are danger to wealth they are danger to health. you can always buy a nice house for the same price just outside the city with gardens and most important it's yours FREEHOLD.

              when i go past flats they look to me as an open prison nothing more. there is no appeal you can't even take back your girl friend as space is limited.

              now i will tell you all this..... you here and see apartments for sale, apartments tolet etc... but apartments are flats just a nice way of fooling people and i just want to add another note before i finish to nite.

              FLATS were built for 1 purpose and that purpose was for city and county council to house the Poor nothing more. if people couldn't afford to buy a house and they were on the dole living of the government flats welcomed these people.
              now when i see this and you all know that in most cases the flats house single teenage mothers who live of the dole.

              i see you all next time....
              This seems like personal opinion and a very generalised view rather than sound investment advice "you can't even bring your girlfriend back...."

              I happen to agree that from a residential point of view there are more issues owning a leasehold or for that matter a freehold flat - management companies are useless in most cases and as freeholder you have the added headache of maintaining communal areas, collecting rent etc - but they do suit some people as one other commentator stated.

              From an investment point of view, the demand for land has led developers to build upwards to maximise profits but we are not a nation that generally embraces the compact urban life style that florishes in other countries around the world. This apathy toward the apartment lifestyle in conjunction with a glut of properties that have been built in the last few years leads to unsustainable values and in some cases serious losses on investment - I've heard of £250K new build flats selling at auction for less than £150K in parts of the South East.

              I think that to say that these flats are all used by single mums shoved in there by the council is a bit ignorant and I can't with most of your reasoning; however I do agree with the point itself...steer clear of flats/apartments - particularly new builds - unless they are unique, at the highest end of the market and in a sort after location.

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              • #8
                Flats seem to invoke a lot of passion in people who don't like them. I think they're a terrible investment, but as a renter, they work very well, and prices are pretty good in certain cities suffering from over-supply.

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                • #9
                  Re: flats don't ever buy

                  When most people hear about the millions of dollars investors make buying and selling real estate, the majority of them think about homes and duplexes. That's because nearly everyone starts in the single family market.
                  But they don't have to. The main reason investors start out buying homes is because they've heard all the stories or watched an infomercial where some guru is pitching the latest and greatest "no money down" technique. Buyers think they can purchase homes with no cash using a variety of methods including foreclosure, rehab, fix and flip, subject to, lease option, partnerships, wholesaling and more. And they're right-you can buy homes that way. But you can do the same thing with apartment buildings.
                  The benefits of investing in multifamily properties are out of this world. I haven't found a single reason not to invest in apartment buildings. Let's review five of the top reasons apartments simply make more sense.
                  Apartments almost always provide a more affordable housing option:
                  I can't get into all the economics explaining why apartments provide a more affordable housing option in this article because it would turn into a book. So let's try to simplify it. The difference between the amount of rental and mortgage payments consumers spend each month is what I call the "gap". Picture a bar graph where the average rent is $600 per month and the average mortgage is $1,000. The difference is the gap. As the gap increases fewer people can afford to purchase a home. There are only two ways the gap can get bigger. First, the mortgage payment increases or second, rental rates decrease. Most of the time rents do not decline, at least not significantly.
                  Mortgages, on the other hand, usually increase. If enough homes exist in the market, to meet demand, builders stop building. When demand catches up, they start developing again, because it becomes profitable. That means prices increase, and with them, mortgages. As mortgages increase the gap gets bigger and we experience greater demand for apartment rentals and that pushes rent higher. Rent growth always follows mortgage growth. This is one of the best reasons to buy an apartment building.
                  Somebody else manages the property:
                  One of the biggest advantages of buying apartment buildings is leverage. All real estate investors understand the term leverage, but most relate the term to money. There are lots of ways to leverage; money is just one of several. When you buy apartments, you leverage off the work and effort of other people because you can afford it. A lot of investors don't want to be property managers-I'm one of them. Others don't trust them and with good reason. But if you take the necessary steps, you'll enjoy the benefits of apartment building ownership (cash flow, appreciation, tax advantages, or principal reduction or a combination of them) for many, many years to come. The best part? Somebody else does all the work.
                  The numbers make more sense:
                  When you buy single family homes and 2-4 unit properties your expenses usually consist of taxes and insurance. If you're lucky, you might find one other line item such as management or utilities. But that doesn't mean other expenses don't exist. We all know there will be turnover, resident issues and the like. When you buy apartment buildings, expenses include taxes, insurance, utilities, maintenance, management, advertising and much more. Not only that, but you get to spread out the cost of maintaining the property across more units. The economies of scale are far superior to homes and 2-4 unit properties. For example, if you have a total of 20 houses, you have 20 different roofs. You also have 20 different utility bills, tax statements, mortgage payments and who knows how much time you'll spend traveling from property to property. The numbers just make more sense with apartments.
                  Increase income (and property value) and spend very little doing it:
                  I have personally bought and sold many apartments where I didn't spend a penny improving the property, yet I increased the value hundreds of thousands of dollars. While doing it, I also improved cash flow. "Forcing appreciation" on an apartment building can be as simple as increasing income and decreasing operating expense. To increase value with most real estate, you have to spend money improving the look of it. But that's not necessarily the case with apartments. You might not have to spend anything at all.
                  Less competition:
                  Most investors limit their potential by selecting properties that require conventional financing. Then they shop based on the amount of money they have. When you look for a car, one of the first questions the salesperson will ask you is, "What price range?" Then they try to fit a car into that range. It's true that the number of opportunities increases in relation to the amount of money you have available, but that's the worst way to shop. There are lots of ways to buy apartments with no money, and because most buyers are looking for homes, you eliminate a majority of the competition when you invest in apartments.
                  Again, these are not all of the benefits to owning apartments, but it is a good start. I encourage you to check out The Successful Real Estate Investor, which is the first course many investors take to build a foundation for their overall investment plan. Once you do that, you'll understand how and why investing in apartment buildings can make all your dreams come true.

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