Interesting. Cash is king. I predicted that already last year. Anyone who has read my posts knows that I have been bearish.
But if you look again at some of the maths now based on the article:
> an Albion Mill flat which sold for £171,000 in December 2004 went at auction for £87,000. In February, another valued at £219,950 in June 2005 fetched a highest bid of £110,000.
Rent of 800 is quoted (if you can find someone) but even assuming undercutting the market by going at 600 per month @ 10 months a year to ensure income.... and you can pick it up and furnish it for 100K
yield = 10*600/100000 = 6%
Now those are starting to look like very reasonable investment yields all of a sudden if you can buy now for cash at auction, and avoid the whole block/neighborhood going into decline.... and of course wait it out for the long term. There'll come a day when you can remortgage it and get your cash back out. Better take a cold shower before I sound too much like a rabid bull property agent.
[edit] after a bit of detective work: the two 2 bedroom flats mentioned on the reedsrain website in Albion Mill sold at auction yesterday for 111 and 113K pounds respectively.
property site:
auction site:
Lot 298 Guide price 100K, result 111K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=307
Lot 299 Guide price 100K, result 113K
http://www.auction.co.uk/Both/LotDetails.asp?Pos=308
here's a fact based report showing trend development over time:
http://www.auction.co.uk/pdf/resi/RAPID_2007_2.pdf
Doesn't look like the trend in repossessions has peaked yet.
I'm gonna wait just a little longer to see how far this goes.....