"I already know which one I want," he says, pointing at the plans. "It overlooks Canary Wharf." But have the Taos considered staying at home, and waiting for prices to fall further? "It's come to that time," he says. "If we rented somewhere, we might as well stay at home. I'd rather pay my parents money than a landlord."
Imran Ditta and his wife, Nadeem Chaudhry, are both 26 years old. They already rent a flat in this block, and like it so much they have borrowed the deposit from their parents to buy a £140,000 one-bed flat. They currently pay £700 a month in rent, and expect their mortgage to work out much cheaper.
With a 25 per cent deposit, they have been offered fixed-rate mortgage deals of 3.2 per cent. "That deposit size is required for all new builds," says Mr Ditta. "When you rent, you're throwing your money away. This is a new building, and everything's under warranty for two years." Their neighbour paid £180,000 for an identical flat six months ago. "That's going to be an interesting dinner party," says the sales rep.
Other first-time buyers in the queue report no problems getting hold of a mortgage – providing you have a substantial deposit. But some queuing find they need more than they bargained for.
"It is a bit cheeky to say they are selling two-bed flats for £165,000," says number four in the queue, 27-year-old Yash Kulshreshtha. "There is only one available for that price. The next cheapest is £180,000 which is quite a jump." Looking at the adverts, there is a tiny 'from' before the price.
"It seems a bit risky, but we'll have a look," is the attitude of Steven Law, 25, who is joined in the queue by fiancée Katie Kwok, 25. "We were planning to get a house in Barkingside with a garage, but for the same money we could get two flats here." His wife-to-be explains: "One to live, one to let!" Their biggest turn off is the absence of parking (although there is a bike shed).
Others in the queue say they lost out at the Poplar sale, and have come to try their luck here. Dinesh Savjani is considering buying a flat for his 24-year-old accountant daughter. "They are advertising discounts of £70,000 but, in reality, it isn't, as most flats are more expensive," he says. "Still, it obviously attracts people."
Zafar, who turned to buy-to-let investing in his retirement, is a little more cagey about his motivations. "I think I can get £750 a month rent for a one-bed, or £1,000 for a two-bed," he says. "That would give me a rental yield of 6 per cent."
He confesses he hasn't phoned any local estate agents to check these rents. "That's a good idea," he says. "What did they say?" A few hours later, he ends up buying a two-bed flat. "It was a good price," is all he says.
Stephen, an investor in his 50s from Enfield, is more cynical. "I don't know if it is a bargain. Yes, the price has dropped, but prices everywhere have dropped. I think I can get a better deal in my local area."
His friend Ali, another buy-to-let investor, is more concerned about the service charge. "There's a concierge in this block, and that's expensive," he says.
Val, 46, is another investor who says he is a cash buyer, and will buy a flat if he is given an even bigger discount than what's on offer. "I am a bit disappointed with these prices," he says. "The discount tempted me out here, plus it's close to the Olympics. But if I don't achieve what I want today, I will walk away."
Working mum Iman has bought a flat for her 19-year-old daughter who starts university in London in September. "All of our savings are going into this," she says nervously. "But the cost of renting in London is so high."
Buying the flat in her own name as a second property, Iman went to eight mortgage lenders. "Only one said yes, as it's a new build, and the interest rate is 5 per cent," she says. She is shocked when I tell her first-time buyers are able to get rates as low as 2.5 per cent. "I just hope we will be able to sell it in three years when she finishes college."
Castles in the air
If the buyers in Barking wanted a cautionary tale about buying off-plan, they could do no worse than head a couple of miles south to E14. One of the tallest residential towers in the UK, Pan Peninsula in London's Docklands promised to be the ultimate in luxury living, boasting a private cinema, luxury spa, and even a cocktail lounge on the 48th floor.
When construction began in 2006, studio apartments were sold off-plan for £250,000 and the most expensive penthouse was marketed at a cool £12m. Fast forward to 2009, and mortgage valuations are up to 30 per cent below the agreed sales prices. Buyers report that banks will only lend to a maximum of 60 per cent loan-to-value, leaving them to make up the shortfall.
Developer Ballymore has made it quite clear that buyers who try to walk away from their deposits and abandon the sale will be sued for non-completion, as the contracts were not agreed on a 'subject to mortgage' basis.
Now a group of 90 buyers, who have exchanged contracts on around 100 flats in the development, have formed the Pan Peninsula Buyers Association (PPBA) to mount a collective legal action against the developer. A further 70 buyers have signalled their support on the association's website, but are not contributing legal fees. Overall, the PPBA estimates it has support from 44 per cent of those who have bought flats, saying the majority still want to complete, but wish to negotiate on price.
"Total deadlock," is how the PPBA's spokesman describes progress to date. "Our members believe that Ballymore Properties have misrepresented and breached certain aspects of their contract. As a collective association, we aim to work with Ballymore to make good these issues where possible and reach an amicable solution. However, our members are simply being ignored."
Ballymore disputes the association's claims, stating that completions are "going well" at the development. "There are some people having difficulty completing because of their current financial circumstances," Ballymore's spokesman confirms. "On an individual case-by-case basis, we are helping them. Some can afford to close and are just trying to get out of the deal because the market has softened, but they signed a binding contract. In what other walk of life would they expect to renege on a contract – so why try it on with their property contract?"
In the meantime, the situation becomes more desperate. "Many of our members are professionals and their work is Financial Services Authority regulated," adds the PPBA's spokesman. The risks of being sued or made bankrupt could have devastating implications for their careers. Those who dreamt of living in the sky have come back to earth with a bump.
