Buyers agreed to pay up to £250,000 for a two-bed, two-bath flat two years ago, but current mortgage valuations fall far short, and the few remaining buy-to-let mortgage deals require huge deposits. Unable to stump up the difference, the original purchasers have walked away en masse.
The developers have retained their 10 per cent deposits, but are saddled with nearly 80 empty flats that must be sold. The solution? A heavily publicised "stock liquidation sale" at huge discounts to original prices, which had bargain hunters queuing round the block last weekend.
Gutted that you missed out on a bargain property? Well, don't be. This won't be the last 'fire sale' of new-build flats in the current slump. But canny investors looking to snap up a distressed buy-to-let bargain should think very carefully before jumping in, and pay careful consideration to the plight of the original investors.
