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Old March 26th, 2006, 03:52 PM   #1
Deepster
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Greenbank Leeds | Canc | 100m & 48m | 33fl & 15fl

I am i small time investor from Northampton (originally born in Leeds). I have just put a deposit down on a 1 bedroom apartment in Pioneer Reach due for completion in 2008 with guaranteed rent for 2 yeasr (with funriture pack).

I did feel this was a good investment longterm ie 2012 onwards once this area has been rejuvinated we all the other developments due in 2008 onwards.

However i am having a few concerns on if i have paid too much 163k + 20k parking.

I know in todays market a can buy a similar flat for 130k + parking but those areas have already shown growth. Globe Road is really just starting out and i would hope in 5-10 years time i should see a reasonable return?

Also my other concern is after 2010 will i be able to get 700pm rental considering the amount of new builds that will be on the market at that time.

Any views would be much apprieciated as i don't know whether i should stick to my orinigal instincts or pull out and loose my deposit.
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Old March 26th, 2006, 05:08 PM   #2
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I'd stick to it- the site itself is in an area thats on the edge of the main development area and things haven't quite started to happen there yet, but there are lots of proposals near by that will boost the land values and make it a more attractive place to move into- aka lots of money! I think any investment, at a reasonable price I may add, along the western riverside corridor is good. It is a fast upcoming area.
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Old March 26th, 2006, 05:28 PM   #3
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Hi Deepster, 183k seems very steep for a 1 bed. I was looking for an investment property in Leeds at the start of the year, I forget what I was quoted for an off plan 1 bed with parking in the new build element of Roberts Wharf but it was nothing like 183k. Look at some of the city centre estate agents sites to suss out what comparable properties are going for, Morgans normally have a good selection for sale.

I decided against going for it as I feel that there is a whole glut of new builds about to hit the market and my gut feel is that Leeds will have massive oversupply of city centre flats in a few years. I still think that conversion flats or really top drawer quality new builds will be a good investment, but I wouldn't touch one of the 'commodity' new builds with a bargepole, from either an architectural or financial investment perspective. That is just my view though and I expect a flaming from certain posters!

I agree with LN1 that it is certainly an up and coming area (although the plans for Whitehall Rd do nothing for me personally) but it seems that you've paid an upped and come already price!

Last edited by Smoggie_Si; March 26th, 2006 at 05:34 PM.
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Old March 26th, 2006, 06:36 PM   #4
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Yeah I msut say 183k is alot- for that much you could get quite a good proper city centre apartment.
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Old March 26th, 2006, 09:27 PM   #5
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Cheers for that. So i'm left with the following i think?

1. take a risk and hope property prices will raise enough in the greenbank area for it to be a decent investment long term

2. Walk away from a grand - that's painful =(

I suppose no ones got a cyrstal ball but if it was your money what would you do?
I think losing the grand deposit is making it hard to walk away from this...
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Old March 26th, 2006, 09:44 PM   #6
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If it was my money I would write off the grand and walk away. I think for 183k you could get a far, far better investment than a 1 bed in Greenbank. Your call though.
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Old March 26th, 2006, 09:55 PM   #7
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183k seems pretty steep.

For 175k you can pick up a 2 bed 2 bath overlooking millenium square. It's an already well established location, in a high quality new build.

http://www.rightmove.co.uk/viewdetai...a_n=2&tr_t=buy

For 180k there are plenty of 2 beds on the market in more established riverside locations.

You never know how the market will behave, but I think a better investment, would be trying to get a period/factory conversion in the city centre, in a more established area. These are in shorter supply, so will always command a premium over some of the near identical new builds.

Out of interest what floor is the flat on?
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Old March 26th, 2006, 10:09 PM   #8
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the apartment is on the 6th floor out of 11 floors. The more i speak to people the more i think i made a rash decision. I have raised my concerns with King Sturge and asked George Wimpey to give me reasons not to walk away and why their property is 20k more than the market? I'm not sure what they will say?

Are there any other investors here that have also purchased in greenbank. When we went down to london on the open day the flats were selling like hot cakes and thats one of the reasons i jumped at the opportunity myself (thinking to myself if all these guys are buying them they can't be that badly priced?).
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Old March 26th, 2006, 11:03 PM   #9
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Although 183K seems a high price for a one bedroom apartment, it is important to know how large the apartment in square feet. This will determine whether your investment is sound or not.
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Old March 26th, 2006, 11:08 PM   #10
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True, there are some huge 1 bed flats on Park Row selling for about 300k.
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Old March 26th, 2006, 11:17 PM   #11
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Expensive, but if you can afford it what a great location! This clock needs to go forward too... but anyway!
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Old March 27th, 2006, 10:04 AM   #12
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Again its not that big 512sq ft. It has a balcony but its not facing the front onto globe road. It is looking onto the communial gardens.
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Old March 27th, 2006, 11:45 AM   #13
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bearing in mind that it's £163K - the £20K is for the parking. A friend lives in Whitehall further down Whitehall road towards the train station and they have been offered £40K for their parking space! well, you're getting a fully fitted apt + 2 years guaranteed rental income. seems like a reasonable gamble to me.

you pays your money and takes your choice. anyway, why throw £1K away now - you WILL regret it i have no doubt. in 2010 things will start to look very different down that end of the city. personally, i would go for it. if you want to bail out in 2010, then i wouldn't expect you to be losing very much if anything at all.

remember, the wellington place development will be huge plus the completion of whitehall road on the other side, plus doncasters. lots of activity. and don't forget further down globe road is the expansion of Holbeck Urban Village.

Forget Smoggie - if you've got the balls, go for it!
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Old March 27th, 2006, 05:29 PM   #14
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Thumbs down

Quote:
Originally Posted by Skopie
True, there are some huge 1 bed flats on Park Row selling for about 300k.
No they don't! Some people would like to think they could though
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Old March 27th, 2006, 05:32 PM   #15
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Well, being offered at 300k
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Old March 27th, 2006, 05:37 PM   #16
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Current acheivable sales rates


City west: £240 - £270psqft (ie whitehalls / city island / westpoint)
City riverside: £250 - £290psqft (ie dock st / calls / brewery wharf)


Apt in question - 163/512 = £318 psqft
with parking - 183/512 = £357 psqft

ouch...

Sorry but you won't see 1 beds that size for sale in Leeds for any more than £150k for the next 5 years.
You have made a very wise decision to buy a parking space - but at todays prices you wouldn't get more than £140k for the flat.
Your direct competition will be Velocity (granted slightly smaller apts - av 480 sqft) but they're not selling for anymore than £130-5k at the moment.
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Old March 27th, 2006, 06:23 PM   #17
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Quote:
Originally Posted by magicrealist
Forget Smoggie - if you've got the balls, go for it!
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Old March 27th, 2006, 07:50 PM   #18
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I thank you all for your opinions-it has really helped. I have till the 11th April to decide as thats the exchange date.

Ok i can just about swallow paying more for the flat and hope to hold onto it for a good 7-10 years but after 2010 what rent can i achieve? As part of the package i am guaranteed 758pm (net) until 2010. I very much doubt i will get that after?
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Old March 28th, 2006, 03:26 PM   #19
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Quote:
Originally Posted by Smoggie_Si
cheer up smog!

btw, like the billy bragg sig!
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Old March 28th, 2006, 03:34 PM   #20
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Quote:
Originally Posted by Stig282
Your direct competition will be Velocity (granted slightly smaller apts - av 480 sqft) but they're not selling for anymore than £130-5k at the moment.
I disagree - I don't see how Velocity can compare with Greenbank which is in a much better location and is a much better scheme.

I can certainly see that £163K is a bit overpriced, but the reason for that is the guaranteed two year rental income plus the fully furnished apt (although furnished with what? ikea?). I would suggest you try and negotiate on the price of the apt and/or parking pace. You never know!

Also, although the £/sqft argument is reasonably solid, it's not the definitive answer. Having the parking space is crucial and will make the gaff much more sale-rent-able. Go for it mate - what the hell!
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