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New build homes... the catch

2

Comments

  • LandyAndy
    LandyAndy Posts: 26,377 Forumite
    First Anniversary First Post
    Don't forget, today's shoddy new build is tomorrow's well constructed older house.
  • Katapolt
    Katapolt Posts: 291 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Having recently gone through all these options myself, heres what discovered:
    - If you want to use the HTB Equity Loan scheme to MUST be eligible for a mortgage for the full purchase price (minus deposit) of the property, as you will be paying back the mortgage AND the loan every month they wont accept it if you can only get a mortgage for the price -20% equity.

    -theyre overpriced and often rushed, especially on large developments. youll lose value the second you move in.

    -with an income if 18-19k you should be looking in the region of £150,000 max, as its really hard to find a mortgage for more than 4 times your wage. again, this must be the price BEFORE any equity loan.

    i sacked off the idea of a new build and now have a very nice little place that i can put my own stamp on :)
  • bouicca21
    bouicca21 Posts: 6,513 Forumite
    First Anniversary Name Dropper First Post
    I rarely agree with Money, but this time I reckon Money is right on the money.

    I am possibly even more cynical as I'd point out that property development companies like TW contribute large sums to Tory coffers.
  • mailmannz
    mailmannz Posts: 311 Forumite
    First Post First Anniversary Combo Breaker Debt-free and Proud!
    Do yourself a favour and stay away from the new build property.

    Save for a bit longer and buy an older house that will most likely be bigger, more solid AND not have endless services charges that only ever go up!!!
  • gycraig_2
    gycraig_2 Posts: 533 Forumite
    From experience Newer New builds tend to be a bit smaller but use the space a LOT better, access is better thought of than it was years ago, selling sofas for a living im yet to have a single issue with a customer getting a sofa into a new build.

    I loved that I could move into my new build and just crack on, it came with all the basics is very energy efficient and shouldn’t need any work for a fairly long time.

    No stupid sticky out bits, cupboards hidden everywhere, two ensuite bathrooms. I personally love my new and much prefer it to the bigger ones I could of got down the road for less money
  • Davesnave
    Davesnave Posts: 34,741 Forumite
    Name Dropper First Anniversary Photogenic First Post
    HampshireH wrote: »
    Why specifically do you want to buy a new build?

    What's wrong with other lived in homes?
    Many young people are scared-stiff of DIY and want to avoid doing work on a house at all costs.

    I put it down to Britain's education system that doesn't sufficiently value practical skills, or do much to encourage them in the later years of secondary school.

    Mind you, the woodwork teacher asked me not to return after a year with him at my school, so perhaps I'm biased! :rotfl:
  • xsor
    xsor Posts: 90 Forumite
    Combo Breaker First Post First Anniversary
    The catch.. is literally because it's 'new'.

    You're paying premium to move in somewhere that no one has done so before, no one has !!!!ed or shat in your toilet (apart from builders).

    Is it worth it? Well, it's up to you to decide..

    The H2B equity will help in ways that you borrow less from the lender, which means paying less interest etc.

    So the government will own an x amount of %, of your property. You don't have to pay any fees/interest until the end of the 5th year, which is something like 1.75% of your property value + RPI increase and a further 1% (So something like 2.75%, which can increase to 2.80%) - correct me if wrong.

    Might be okay if you want to sell it after the 5 year, but not sure if property value increase will cover your premium.
  • moneyistooshorttomention
    moneyistooshorttomention Posts: 17,940 Forumite
    edited 5 January 2018 at 12:27PM
    Davesnave wrote: »
    Many young people are scared-stiff of DIY and want to avoid doing work on a house at all costs.

    I put it down to Britain's education system that doesn't sufficiently value practical skills, or do much to encourage them in the later years of secondary school.

    Mind you, the woodwork teacher asked me not to return after a year with him at my school, so perhaps I'm biased! :rotfl:

    Not just younger people - speaking as mid-60s person that can just about change a light bulb and has come to the conclusion I'd probably be a better decorator myself than any of the ones I've employed on current house (:cool:not hard).

    I'd much rather move into a house that I didnt have to lift a finger on and that was already in 21st century style - so I do see the attraction. Even bigger attraction when living in an area where a lot of people agree with me that tradespeople often have a manana attitude.

    Personally - I think probably the ideal option for house-buying is probably a house around 5-10 years old. No new build premium and hopefully someone else has sorted out any building defects ("snagging" as they call it:cool:). Hopefully also the first owner hasnt done any bodge DIY in the place altering it:cool:. When a house has had several previous owners - there's a good chance at least one of them has bodged and/or neglected the place.

    LOL at the thought the woodwork teacher didnt chuck me out the class Dave - despite the novelty of me being the only girl he had in it....
  • WeAreGhosts
    WeAreGhosts Posts: 3,099 Forumite
    First Anniversary Name Dropper Photogenic First Post
    NineDeuce wrote: »
    Why do people apologise for putting posts that might have been on before?

    Because there's always some smart, cocky eejit who says "why not Google it?" or "use the search"....
  • p00hsticks
    p00hsticks Posts: 12,805 Forumite
    First Post Name Dropper Photogenic First Anniversary
    teddysmum wrote: »
    Older houses usually have more garden and a garage big enough to park a car with room to get out. New estates also seem to have parking problems for visitors as road spaces/bays are limited. (One near us has double yellow lines, allowing no road parking at all and each house has a tiny garage, with drive parking for one car.


    I'd say your comments about garage sizes aren't necessarily true - cars have gotten bigger over the years, so garages in older houses are often smaller and won't always accomodate modern vehicles. Our small corsa just about fits into the garage of our 1947 house
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