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There has been some recent media reports about the purchase prices of sheltered housing and the subsequent drop in their values. It appears that due to the very small market for this kind of property many purchasers (and their beneficiaries) have found that selling is very difficult and often results in the eventual sale price being way below the original purchase price.

It would also seem that there could be a problem with purpose built student accommodation. Whilst this sort of property is exempt from the additional 3% stamp duty and is often advertised with excellent yields there are potential pitfalls. Apparently lenders won't lend so it's cash buyers only and the lease restricts letting to students only. This may seriously affect the ability to sell the property as it going to attract property investors only and those who can pay cash only......a very small market.

I was always taught that when making any business decision you should always ensure that there is a viable escape plan.......thats something that appears not to exist in both these examples.

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I could write a book on my dealings with Mc Cathy & Stone retirement flats.  My advice to anyone thinking of buying one of these places is to avoid the purchase of one of these flats like the plague.

In brief I had to sell my Aunt's flat to pay for nursing home fee's. Difficult to sell on. I was lucky but I had to completely refurbish it with new kitchen, bathroom, carpets, decor etc. etc.  I managed to attract a buyer eventually, but only one, after a 4 month selling time.

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