New Builds, can someone explain please?

hethmar

Without leaping on me for even considering purchasing at the moment, Im interested in why its often said on here that new builds will fall the most and that they should be the greatest opportunity for asking for big discounts please.

I appreciate that the developers have paid out for the land/workers/materials and that they wish to recoup that money but will they really discount heavily as suggested? Ive seen some 2 bed flats currently released at £220k far out of my reach - can one really go in and offer way below this without being laughed out of the sales office?

The company - George Wimpey, say they offer incentives but from what I can see those incentives are only for a couple of their developments, not the one Im interested in and anyway they arent wonderful offers.

Merlot

New builds are sold at a premium, most are overpriced.

We currently have a new build Persimmon estate, not one house has been sold as of yet. A small three bedroom (detached) is £175,000, I live directly opposite this new build in a Barratt 4 year old 4 bedroom detached and mine is currently worth £180,000.

No one in their right mind is going to offer £175,000 (no carpets included or white goods etc, not even a fire place is included) when my neighbours larger 3 bedroomed detached home is currently valued at £164,000.

There are deals to be done, I would find out how much similar flats/houses are in the area you want to purchase and offer accordingly, even a cheeky offer, they can only say no, start low and work your way up.

Merlot.x.

hethmar

Problem is I think flats in the area are all a similar price

Merlot

You need to find out for definate the prices of flats in the area before deciding on what to offer, I would go in low, you may get laughed out of the office but on the other hand, they may just snatch your hand off if you have a mortgage in principle.

chewmylegoff

the issue with new build price falls that is hitting the headlines is that there has been a lot of building of flats in certain city centres over the last few years. a lot of the houses were bought at inflated prices by 'buy to let' investors. the number of flats has got to the point that there is complete oversupply in some areas and no-one who wants to rent the flats from the landlords. the landlords therefore can't afford to keep the flats and have to sell. however, as there is a credit crunch on no-one can get mortgages to buy them, and in a lot of cases no-one would buy them even if they could afford them as they are badly built and aren't in particularly nice places.

as a result prices in many areas have gone down the toilet. birmingham, manchester and leeds have been particularly badly affected.

i expect there are new builds in other places that aren't going to be as badly affected and will only see falls in line with older properties, however remember that anything a developer is selling now is likely to be priced in line with a business plan drawn up 2 years ago i.e. unrealistically.

i think you can offer as low as you want. who cares if they laugh you out of the office, it's better than overpaying and losing a load of money.

Debt_Free_Chick

One of the reasons ...

When you buy a new build, you're are paying "full price" for all the extras - fittings, carpets, white goods etc.

The day you move in, these are second-hand and valued only at car boot sale prices.

hethmar

I am tempted to offer the 1 bed price for a 2 bed.

Merlot

Do you have a link to the property you have in mind?

hethmar

http://www.georgewimpey.co.uk/newhomes/North+Thames/TheVenue/

Ive just been reading that Wimpeys are in a very poor way financially.

Looking at the site map, Im slightly concerned about the land to the right which seems to have been earmarked for "industrial/commercial use subject to planning approval"

OMG, just seen the time, many thanks for you input, must get my well needed beauty sleep

Merlot

I like the look of the development, I would be concerned too about the land earmarked for industrial use (subject to planning), I think you can look on your councils website and find out if an planning application has been made for this land. £182,500 is the starting price of a 1 bedroomed, and £219,950 for a 2 bedroomed.

65% sold already, is it finished? if so, as Wimpey are having a tough time, I would be giving them a cheeky offer.

Jonbvn

Without a doubt there is a massive over-supply of NB flats in many places in the UK. Personally this was as a grossly misconceived idea from the onset. Who exactly did the developers think would live in these very small "executive apartments"? Clearly such properties are useless to any family with kids.

Personally, I see many of these properties eventually being taken into public ownership, and becoming the "sink-hole estates" of the future.