General (main property discussion here) - Flat in Leeds City Centre

This is my first time to post on this site but have been reading the different posts now for over a year.Some very good information from different people so i was hoping that someone can help me with my problem. Last year i agreed an off plan 1 bedroom apartment in a new development in Waterloo Road in Leeds City centre,(no parking and around 480 square feet)It was a local developer (McGinnes Group ,Northern Ireland)who were building the apartments and a lot of local people from around Derry City bought here from a local agaent who was selling them. Anyway i agreed my flat for £140k and paid a 10% deposit, flat should be ready some time around sept/oct 2008, what i need to know is this flat now worth £140k or less? If it is worth less than 125k should i just forget about my deposit and throw up the flat. Thanks Gerry.

A quick search on fish4homes shows lots of apartments in Leeds from £120,000 upwards, with quite a lot over the £140K level, much depends on the location...

Lumiere and Clarence House are developments with prices higher than £140K, but most in that price range were 2 bed apartments

Hi Gerry, Leeds has had a lot of bad press as of late with the apartments in the Aspects 13 and 14 developements springing to mind,That was due to there prices being inflated by the developer and investment company.I would look to what you are wanting to do with this flat.If your planing on flipping it then I think your going to struggle to achiveve any profit however the rental market is quite good in the Leeds area and I think as with any property longer term (5 years+) you will be fine if not do quite well out of it. Cheers Damian

Thanks for the help Bill and Damien.I am based in Ireland and i don't know enough details of Leeds City Centre to know if this is a good location. It's just off Dock Street which people tell me is a good location with trendy bars,cafes,shops and restaurants. As a general rule how much more is a 2 bed apartment compared to a 1 bed. Thanks Gerry .

Still looking for some more advice regarding this flat in Leeds city centre.Surely someone knows the true market of Leeds at the minute. Thanks Gerry.

Gerry, you have paid £14k towards it already. Don't waste your money and walk away.

Your suspicions are correct - resale wise, you wouldn't get £140k for it. But this is only because of the large amount of new build in the area (this is a problem with buying in City Centres). It is probably worth £120k. HOWEVER, who cares? You wouldn't be thinking of selling it as soon as you complete anyway. And, after the market settles down a bit, you will get some good capital growth on it. You just have to ride the storm.

Rental wise, you should get £500pcm(ish). And most agents will tell you to furnish it.

Whenever buying new build you need to realise you are buying (most the time) over the odds. And because of the massive supply of new builds throughout the UK, you have to hold on to them for a while to see some good returns.

If this is an investment, why are you thinking about its market value now? As there is so much new build in Leeds, you can always find comparable to refinance to a higher level than is TMV (true market value).

To sum up, your flat is worth about £125k. But, you should keep it untill you have got some good growth. You will always let the property out in Leeds as long as you have a competant letting agent and you are demanding relaistic rent. This will be a very low maintenance investment that in a few years time should have some good growth.

Hope this helps mate!

James.

Thanks for your advice James. My only problem is if i had invested my 14k in BTLs in Scotland at the same time(i did purchase 3) i would now be in profit by maybe 8-10%, while with this investment in leeds i am already losing money because when the flat is build it probably will not be worth what i paid for it £140k.I think i will probably hold onto the flat and hope the market recovers and i recoup my deposit at least.Anyway here is the details of the development from the developers wedsite

** Apartments all booked, subject to contract **

Rarely does an opportunity to live in one of the most sought after addresses in Leeds come along. “The Calls” with its multitude of bespoke boutiques, bar and eateries is undoubtedly the most stylish location in Leeds City Centre.

One the corner of Waterloo Street and Hunslet Road, steps away from Dock Street, Malmaison and the famous Adelphi pub, residents of this development will be able to combine the convenience of city centre life with the village like atmosphere of The Calls.

This truly unique scheme comprises 74 luxury 1 and 2 bedroom apartments boasting secure underground car parking and a superb level of specification and finish to all apartments.

Completions expected Spring 2008.

For more information, please visit www.mcginnisurban.com