How To Make £150,000 on a Property: without finishing it, buying it or living in it

Investors start flipping Battersea Power Station flats – and they’re not even built yet!

We at Four Corners Properties are always advising our customers that their money is always save and productive when they improve their homes. When you put money in your property you are not spending money you are investing it.

Upmarket apartments in the new Battersea Power Station development, which are not even built yet, are already being sold on at a 40pc mark-up, fuelling fears that investors are “flipping” the flats and pushing up prices.
An early-bird investor who reserved an unbuilt flat in the south London scheme two years ago is understood to stand to make about £150,000 by selling the apartment on the market.
The two-bedroom, two-bathroom flat in Faraday House is part of phase one of the residential conversion of the prestigious landmark and is expected to be completed by next year.
The investor is thought to have put a 10pc or 20pc deposit down in February 2013 to reserve the apartment with a £722,000 price tag, as part of a flurry of property companies and investors who snapped up the first 600 homes.
The property has now been put on the market by the estate agent Chestertons, with an asking price of £865,000.

A second flat also appeared on the Chestertons website this week. This property was reserved at a value of £711,000 and is also on the market for £865,000. It is unclear whether it was reserved by the same investor.
This reignites concern that homes built in the early phase of the huge project, were mainly reserved by investors – who have waited for the market to pick up before “flipping” them – and overseas buyers.
A private buying agent said: “This is not illegal, but at a time of huge pressure for new housing for Londoners and with house price inflation pushing home ownership beyond the reach of many, there must be a question mark over this kind of naked profiteering.”

Another professional, central London buyer told the Telegraph: “I saw a round-robin email very recently asking for buyers for a Battersea Power Station flat that was bought by an investor in phase one but who cannot pay the second deposit [she said two 10pc payments were to be made for this apartment a year apart].”

Battersea Power Station Development Company’s chief executive, Rob Tinknell, said last year that phase three was marketed to British buyers first.
A spokeswoman for the company said: “We launched phase one at Battersea Power Station over two years ago and we are pleased to see that the early pioneer purchasers, who helped to get this project off the ground have experienced good levels of growth.
“Of the small number of resales – we are finding that the majority have been to local purchasers. We have made every endeavour to attract owner occupiers to this mixed use new urban quarter. The size of the new homes, the interiors and the top class amenities mean our homes are desirable places to live.”

Source: Anna White, Property Correspondent, The Telegraph

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