Tonight:
4°c
Value of my flat has fallen by 50 per cent
Elizabeth Hopkirk, Evening Standard20.10.08
MAURICE CONROY bought his flat in Pimlico at the height of the market and has seen its value fall by 50 per cent.
He purchased the property as an investment, hoping its value would soar so he could sell it for a profit within a year.
Instead he finds himself in a negative equity nightmare and has no idea how long he will be forced to hang on to the property for.
Mr Conroy, 43, from Chelsea, and his partner Caroline Faulkner bought the tiny 120sq ft flat for £175,000 in August last year.
They had it valued soon after and were told it could sell for £225,000. But a year later its value had fallen to as little as £80,000.
Mr Conroy said: "It's like being hit in the stomach. It's the biggest drop I've heard of, and I scan all the property news. A £95,000 drop that's 50 per cent."
He admitted he paid over the odds for the flat in a Regency stucco-fronted terrace in Winchester Street. Its original asking price was £150,000.
But at the time the property market appeared to be soaring and Mr Conroy was convinced it was a good investment.
The full-time property investor, who owns a string of buy-to-let flats, said he would rent it out. But if he cannot attract enough rent to cover the mortgage he will be in a serious financial trap.
Rents are falling by 20 per cent across the capital because of over-supply.
Thousands of owners who hoped to ride out the credit crunch with lucrative buy-to-let investments are being hit by the drop in rents.
The owner of one Chelsea house, which was let last year for £2,700 a week, was taking offers for £2,000 a year later.
Reader views (5)
I am in your boat, friend, there are many like us. Dont worry, be happy. No need to loose your health TOGETHER with the 90,000.
- Mezmail, Tanzania
All this article proves is that the flat was grossly over valued in the first place so its probably at more like its normal value now. If this man was that stupid to think the bubble wouldn't burst, he's not exactly the best property developer ever is he.
- Louise, Essex.
Boo hoo.
I honestly don't know why people like Mr Conroy are so willing to make public their utter stupidity.
- St, London
No point being gutted, just live with it. The Market will return but I can't see it 1012 more like 2022. Stop whinging is the first thing to do. Nobody but yourself to blame.
- Mike, London
A professional property investor admits paying 17 per cent over the asking price for a microscopic 'flat', in the hope of a speculative price rise and then loses money. My heart bleeds at hearing this piece of non-news. Are his other 'investments' performing as well?
By the way, 80k is still too much. A couple of years ago I paid less than 175 (and less than the asking price) to buy and renovate my 800 sq ft flat, and it's lost very little in value. But of course, it's not in Chelsea! How much would you pay for an article about it?
- John, London
