As a development, the future of Pan Peninsula is assured. Work is said to be several months ahead of schedule and the towers appear to be almost finished. But as an investment, the immediate future is far less rosy. A local estate agent revealed that a client bought a one-bedroom flat two years ago, off-plan, for £420,000. So far he has paid two deposits totalling 20 per cent of the price, just over £80,000. Now the flat is thought to be worth only £375,000. He is trying to sell for that price. If he can sell, it will limit his loss to £45,000. If he cannot, he faces losing his deposit of more than £80,000.

This is what the expression "crunch time" was invented for. We say... if the buyer has the cash (and that's not inconceivable considering the kind of investor who was eyeing up flip possibilities when the Pan Pensinsula project was launched)... go ahead, finish the deal, live in it or get a tenant, and wait. You've only lost money if you sell at or near the bottom.

"Several months ahead of schedule", though... interesting, isn't it, how falling prices can focus a developer's mind?

Pen Peninsula - details emerging [December 5, 2008]

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