Buying on the EasyBuy scheme offered by Crest Nicholson

wymondham

sidge66 wrote: »

Trollfever I guess you may be right but there are 37 properties on this site, they only have 9 left so it can’t be all doom and gloom can it? Or am I just being too naïve and positive about a bad situation.

I do think you may be being a bit naive about a bad situation.

Re read the thread and count up how many people have said it's a good opportunity and you should buy. Look at other threads with users in similar positions. You seemed to have have the right idea on post #11, but you're swaying ... I'm interested to hear what is keeping the idea alive for you?

Property prices have fallen 10.5% in a year, this in itself should set big loud alarm bells ringing. You have unfortunately a unique set of bad circumstances to contend with:

1. Buying a new flat ... always overpriced regardless of 'deals'. Plus if rumours are to be beiveved there will shortly be a sell off of unsold flats to housing associations, some people have firm views on this...
2. Buying with a scheme .... just to enable them to sell, not for you to buy.
3. Buying at the top of a crest with a long way down ..... ensuring you will be in negative equity and trapped in this place, unable to sell for an unknown period... Don't brush this off lightly, even if you intend to stay, as this can financially ruin people, especially those in your financial position.
4. You seem to have an inherent dislike for renting, saying it's dead money ..... Buying now and you will loose about 2% a month, this is far in excess of what your rent will be.

The number of people in negative equity is 300,000 and growing so you can see how many this is already effecting..

I would urge you to get back to post #11 and reconsider. Sit tight, save, watch prices tumble and revisit the idea when the market looks better. Ultimately it is of course your own choice so I wish you the best of luck with whatever you decide.

SouthCoast

A 2 bed flat on the development can be rented for £775 a month.

http://www.rightmove.co.uk/viewdetails-10777821.rsp?pa_n=2&tr_t=rent

A 2 bed terraced just round the corner can be rented for £695 a month.

http://www.rightmove.co.uk/viewdetails-8492673.rsp?pa_n=4&tr_t=rent

And this is a 2 bed flat in an excellent location for £720 a month:

http://www.rightmove.co.uk/viewdetails-19093192.rsp?pa_n=4&tr_t=rent

sidge66

Chewmylegoff- The fees are covered by the builder so would not need a loan for these. The easiest way I can explain the scheme is we get a mortgage for 75% of the property, the builders loan us the other 25%, interest free for 5 years then 3% for the next 10 years. If we haven’t paid back this loan by the time we come to sell we’d owe them 25% of the value we sold at.
The principle mortgage we have on offer to us is £690 on a fixed rate of 6.2% for the first 5 years then adding the over 3% (from the loan) for the rest of the term.
Since posting they have contacted and rejected the £155,000 we offered so I don’t think I will be able to go back and offer lower anytime soon.
Wymondham- I still haven’t come to a decision either way yet. We both like these as soon as we saw them, I know your bound to being brand spanking new etc but the location is a five minutes walk to my work and this too attracted me. My partner would still have to drive as she works in Crawley which is about a 45 minute journey.
Southcoast- The first property you have found for renting is in the same development as what we are looking at and the rent is more than we’d pay on the mortgage. I know its for not as long a period but we wouldn’t be able to afford to save if we took this option.
If we ended up renting it would be a one bed place, not a studio flat though. The idea of buying a two bed was appealing as it would give us more space and a spare room which could be used for a variety of options.

dubsey

In 1992 I nearly fell for one of these schemes too. I totally fell in love with a brand new 3 bed house which was £65k. Was desperate to live with my then BF (now DH) and that way of buying would have been my only option. I went to see a friend of mine who was a mortgage advisor for a large bank, she said if it was anyone else she would arrange a mortgage for them but because it was me she advised me not to touch it with a barge pole. I too had the argument that prices may start to go through the roof and then I would never be able to buy, then two years later we bought a much nicer house (albeit 2nd hand and needed work) two streets away for £36k.

There have been some relevent, informed posts here. No - you cannot accurately predict the market, but that is partly the point. Read some of the threads where a couple were convinced their 'strong' relationship would last forever and hasn't and now what do they do about their property that they can't afford to keep but can't sell. This forum has effectively handed you a crystal ball, please try and look into it. If you want to move in say four years, so you still technically owe the full amount and prices haven't risen back to that level, then what? You say renting one in the same building is more expensive so maybe look at a different area that you can afford and save for a deposit, you will be in a much stronger position when you do want to buy, even if things are by then starting to pick up.

Not doing the new build deal I was offered all those years back was the best decision I ever made.

tweetyshells

You don't know someone until you live with someone. Rent for a bit and see how you get on.

chewmylegoff

sidge66 wrote: »

Southcoast- The first property you have found for renting is in the same development as what we are looking at and the rent is more than we’d pay on the mortgage. I know its for not as long a period but we wouldn’t be able to afford to save if we took this option.

If we ended up renting it would be a one bed place, not a studio flat though. The idea of buying a two bed was appealing as it would give us more space and a spare room which could be used for a variety of options.

it's on the market for more - that doesn't mean you have to pay that much to get it. what is the rental market like around where you live? are there lots of properties available - what sort of price could you get a one bed for in an area that you would want to live in?

SouthCoast

Barnard Marcus auction 19th August 2008

Lot 192 studio flat @ 14 Heene Terrace, Worthing BN11.

Unsold at £65k.

http://www.eigroup.co.uk/auctioneers/templates/lotdetails.asp?a=5&c=brn&l=509658

SINDYGIRL

hi-i'm in same situation with you thinking about buying a property from crest nicholson in bristol. i too am concerned about the 25% payback - have you discovered anything more so i can use this to help me make my decision?

Incisor

sidge66 wrote: »

... it can’t be all doom and gloom can it? Or am I just being too naïve and positive about a bad situation.

Too naive. Sit it out and rent. Prices will not bounce, so take your time. You might find something which will be a reasonable deal for you over the next few months, but leave it a couple of years and save up a deposit, you'll be in a very strong position to buy. But Shared Ownership is just a way of trying to make last year's prices on property. It is the wrong place to start. You will think it is working fine all the time you are in the property. It is only when you come to try moving out that you will discover the pitfalls. By that time, Shared Ownership will have gone away and nobody will want to touch a resale Shared Ownership property, because 100% ownership will be much more attainable.

SINDYGIRL

crest nicholson easy buy isnt shared ownereship though ...is it??