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  • FIRST POST
    • samsam89
    • By samsam89 12th Sep 17, 5:24 PM
    • 120Posts
    • 34Thanks
    samsam89
    Another 'what to offer' thread
    • #1
    • 12th Sep 17, 5:24 PM
    Another 'what to offer' thread 12th Sep 17 at 5:24 PM
    Sorry, it's another one of those threads.

    Basic gist: Sold our property and staying with in laws. Have £50-£60k in savings plus a little bit more invested in a 5 year dividend scheme which negates need to pay tax or NI (roughly £6k). We are currently saving between £1000 and £1500 every month.

    We are (fingers crossed) able to borrow £190-200 - meeting broker next week. Perhaps slightly less.

    A small development of houses are due to begin construction in the next 2 weeks and one is on at £280k. They are set to be completed in 9months and have a non refundable reservation fee of £1000. They aren't registered for HTB and don't appear to want to do so.

    Is this too optimistic as a price range, taking into consideration offers? And what would be a good starting point if so...

    http://www.rightmove.co.uk/new-homes-for-sale/property-50169732.html

    Yes, I know a property is worth what someone will pay for it.
Page 1
    • Crashy Time
    • By Crashy Time 12th Sep 17, 5:35 PM
    • 5,229 Posts
    • 2,207 Thanks
    Crashy Time
    • #2
    • 12th Sep 17, 5:35 PM
    • #2
    • 12th Sep 17, 5:35 PM
    Others here will no doubt disagree, but if you pay 280k for that you are definitely going to lose money IMO. The 9 months might be a godsend because if the market deteriorates in that time you have a chance to pull out, and will have been building up your cash cushion, losing the 1k is no big deal in that situation because you will be saving much more in the long run. If you enjoy being at the in laws, and they like having you there, why not stay on a while?
    • Cakeguts
    • By Cakeguts 12th Sep 17, 6:57 PM
    • 3,072 Posts
    • 4,252 Thanks
    Cakeguts
    • #3
    • 12th Sep 17, 6:57 PM
    • #3
    • 12th Sep 17, 6:57 PM
    How many cars have you got? The cheapest plots which look as if they are going to be 4 and 5 have what looks to me as less parking than all the others.
    • samsam89
    • By samsam89 12th Sep 17, 7:23 PM
    • 120 Posts
    • 34 Thanks
    samsam89
    • #4
    • 12th Sep 17, 7:23 PM
    • #4
    • 12th Sep 17, 7:23 PM
    How many cars have you got? The cheapest plots which look as if they are going to be 4 and 5 have what looks to me as less parking than all the others.
    Originally posted by Cakeguts
    Just the 2. Interestingly the bungalows are the cheapest at 270 & 275.
    • diggingdude
    • By diggingdude 12th Sep 17, 7:28 PM
    • 45 Posts
    • 52 Thanks
    diggingdude
    • #5
    • 12th Sep 17, 7:28 PM
    • #5
    • 12th Sep 17, 7:28 PM
    I may be wrong but in my experience I have never been to a development which will negotiate price unless they are trying to flog a problem one. Good luck regardless
    • glasgowdan
    • By glasgowdan 12th Sep 17, 9:42 PM
    • 2,583 Posts
    • 2,903 Thanks
    glasgowdan
    • #6
    • 12th Sep 17, 9:42 PM
    • #6
    • 12th Sep 17, 9:42 PM
    I don't think you can afford these houses. They'll sell to people who can and you are probably best to keep looking.
    • samsam89
    • By samsam89 12th Sep 17, 10:24 PM
    • 120 Posts
    • 34 Thanks
    samsam89
    • #7
    • 12th Sep 17, 10:24 PM
    • #7
    • 12th Sep 17, 10:24 PM
    I don't think you can afford these houses. They'll sell to people who can and you are probably best to keep looking.
    Originally posted by glasgowdan
    Thanks. I think it's touch and go depending on price. If the price came down slightly I'd be more optimistic, for example if the developer doesn't sell them quickly then I think we could afford one as they'd be more willing to negotiate. Average sold price for 3 bed detached in area is £257k which we could afford, but just a lack of property makes it hard.

    We are continuously looking nonetheless!
    • juniordoc
    • By juniordoc 12th Sep 17, 11:36 PM
    • 226 Posts
    • 187 Thanks
    juniordoc
    • #8
    • 12th Sep 17, 11:36 PM
    • #8
    • 12th Sep 17, 11:36 PM
    Worth waiting a few weeks to see where they are with offers and see how your savings are stacking up. Be patient and in a while they might accept an offer. Good luck!
    • Crashy Time
    • By Crashy Time 14th Sep 17, 5:35 PM
    • 5,229 Posts
    • 2,207 Thanks
    Crashy Time
    • #9
    • 14th Sep 17, 5:35 PM
    • #9
    • 14th Sep 17, 5:35 PM
    It`s nothing special in the middle of nowhere, save your money IMO, there will be bargains when they are forced to raise rates and Brexit comes off the rails.
    • samsam89
    • By samsam89 3rd Oct 17, 4:37 PM
    • 120 Posts
    • 34 Thanks
    samsam89
    Called estate agent few days ago. They mentioned they've had "a bit of interest", in plots 1 and 5. The interest in those plots could well have been my other half mailing them under a different email address. EA did say there hasn't been any reservations at the present time.

    My income has gone up and we are able to roughly borrow £193k. We're definitely saving well with circa £1300 being put away this month.

    Just wondering if a cheeky offer is worth it, and at what price point.. hmmmm.
    • martinsurrey
    • By martinsurrey 3rd Oct 17, 5:23 PM
    • 3,183 Posts
    • 3,875 Thanks
    martinsurrey
    It`s nothing special in the middle of nowhere, save your money IMO, there will be bargains when they are forced to raise rates and Brexit comes off the rails.
    Originally posted by Crashy Time
    http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58508458&sale=5708203&cou ntry=england

    There is a new build in Norwich that has risen by £51k in the time Crashy has been advising against it.

    edit

    4 Malthouse Drive, Hoveton, Norwich, Norfolk NR12 8GN

    06 Dec 2013 Detached, Freehold (New Build) £269,950
    11 Aug 2017 Detached, Freehold £325,000
    Last edited by martinsurrey; 03-10-2017 at 5:25 PM. Reason: link not working
    • Scotbot
    • By Scotbot 3rd Oct 17, 5:39 PM
    • 130 Posts
    • 91 Thanks
    Scotbot
    Called estate agent few days ago. They mentioned they've had "a bit of interest", in plots 1 and 5. The interest in those plots could well have been my other half mailing them under a different email address. EA did say there hasn't been any reservations at the present time.

    My income has gone up and we are able to roughly borrow £193k. We're definitely saving well with circa £1300 being put away this month.

    Just wondering if a cheeky offer is worth it, and at what price point.. hmmmm.
    Originally posted by samsam89
    It is always worth a cheeky offer, the worst they can do is laugh and say no.If interest rares increase and they have plots left they may come back to you next year
    • ReadingTim
    • By ReadingTim 3rd Oct 17, 5:40 PM
    • 2,151 Posts
    • 3,048 Thanks
    ReadingTim
    I doubt the developer would negotiate much, if any, on price so early into construction, even if they are the last remaining plots. If anything, the price is likely to go up as buyers can see the finished, or near-finished product.

    You're only likely to get much of a reduction once they've been finished and stood empty a while, ie the last remaining plot or two, which they're trying to sell in time for their financial year end.

    An offer now, even at your max price would probably be a waste of everyone's time. It may prompt an EA to recommend properties more within your price range, but may also mark you out as a time-waster dreaming over unaffordable properties. If you're set on this place rather than alternatives, it's probably best biding your time just now and reassessing the situation once the build looks close to completion.
    • Quizzical Squirrel
    • By Quizzical Squirrel 3rd Oct 17, 5:58 PM
    • 164 Posts
    • 4,146 Thanks
    Quizzical Squirrel
    Others on here have reported that builders are more likely to give you extras than drop the sale price significantly.

    If they drop the price for you, that has a knock-on effect on all their future sales whereas discretionary extras protect that higher price structure.
    You still pay more or less the same but feel like you're getting more. That's not much good in your particular situation.
    • Crashy Time
    • By Crashy Time 4th Oct 17, 1:05 PM
    • 5,229 Posts
    • 2,207 Thanks
    Crashy Time
    http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=58508458&sale=5708203&cou ntry=england

    There is a new build in Norwich that has risen by £51k in the time Crashy has been advising against it.

    edit

    4 Malthouse Drive, Hoveton, Norwich, Norfolk NR12 8GN

    06 Dec 2013 Detached, Freehold (New Build) £269,950
    11 Aug 2017 Detached, Freehold £325,000
    Originally posted by martinsurrey

    How much will it drop in future though? That is what you need to ask yourself if you bought in August.
    • martinsurrey
    • By martinsurrey 4th Oct 17, 2:03 PM
    • 3,183 Posts
    • 3,875 Thanks
    martinsurrey
    How much will it drop in future though? That is what you need to ask yourself if you bought in August.
    Originally posted by Crashy Time
    That is exactly what you would have said to the person buying it Dec 13, which is my point.

    If they had listened to you they would have missed out on 20% HP growth, and paid more in rent than their mortgage (due to ultra low rates).
    • Crashy Time
    • By Crashy Time 4th Oct 17, 2:16 PM
    • 5,229 Posts
    • 2,207 Thanks
    Crashy Time
    That is exactly what you would have said to the person buying it Dec 13, which is my point.

    If they had listened to you they would have missed out on 20% HP growth, and paid more in rent than their mortgage (due to ultra low rates).
    Originally posted by martinsurrey

    I would have said then that we were in a general bubble, and that it had to pop sometime, now I would say we are at a critical phase, Brexit alone is a sentiment game changer. Sales volumes have dropped, "20% HP growth" is meaningless if you can`t find a buyer, and the house you want to buy has also had it`s "value" pumped up by cheap money and government props. Depending on how much someone borrowed, three years paying a mortgage instead of renting won`t be much comfort if rates rise and the market/economy goes South?
    • martinsurrey
    • By martinsurrey 4th Oct 17, 2:38 PM
    • 3,183 Posts
    • 3,875 Thanks
    martinsurrey
    I would have said then that we were in a general bubble, and that it had to pop sometime, now I would say we are at a critical phase, Brexit alone is a sentiment game changer. Sales volumes have dropped, "20% HP growth" is meaningless if you can`t find a buyer, and the house you want to buy has also had it`s "value" pumped up by cheap money and government props. Depending on how much someone borrowed, three years paying a mortgage instead of renting won`t be much comfort if rates rise and the market/economy goes South?
    Originally posted by Crashy Time
    3 years ago you actually said

    The Ponzi is collapsing, and it feels good not to have any skin in the game.
    Originally posted by Crashy Time
    I don't argue with you anymore, I just use your post history to show people your long running "HPC is just around the corner", and real world evidence that you have been wrong at every turn.

    Even a stopped clock is right twice a day!
    • martinsurrey
    • By martinsurrey 4th Oct 17, 2:42 PM
    • 3,183 Posts
    • 3,875 Thanks
    martinsurrey
    I would have said then that we were in a general bubble, and that it had to pop sometime, now I would say we are at a critical phase, Brexit alone is a sentiment game changer. Sales volumes have dropped, "20% HP growth" is meaningless if you can`t find a buyer, and the house you want to buy has also had it`s "value" pumped up by cheap money and government props. Depending on how much someone borrowed, three years paying a mortgage instead of renting won`t be much comfort if rates rise and the market/economy goes South?
    Originally posted by Crashy Time
    haha also from 3 years ago

    I don`t do predictions, but the market is at a critical point, all the daft money is in, it is just a case now of who makes it to the exit.
    Originally posted by Crashy Time

    Seems the last "critical phase" has lasted over 3 years.

    or was that critical phase not really critical but the one you just said is critical really is critical?
    Last edited by martinsurrey; 04-10-2017 at 2:45 PM.
    • Crashy Time
    • By Crashy Time 4th Oct 17, 2:50 PM
    • 5,229 Posts
    • 2,207 Thanks
    Crashy Time
    3 years ago you actually said



    I don't argue with you anymore, I just use your post history to show people your long running "HPC is just around the corner", and real world evidence that you have been wrong at every turn.

    Even a stopped clock is right twice a day!
    Originally posted by martinsurrey

    So nobody who bought three years ago is having any problems finding a buyer to pay them more (or even the same) as they paid?
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