We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
FTB, making an offer on new build tomorrow - advice needed please!
pete96
Posts: 108 Forumite
Hi there all,
I am new to the housing market as you can see, and new to the forum (which i think is great from what i've read so far!). I'm looking to make an offer on a new build house with my girlfriend tomorrow. The decision to buy has been a sudden one, although rational, and things are progressing very quickly. I do appoligise now if this is somewhat of a re-post, and the advise given is repeated, but because the offer is being made tomorrow i simply dont have time to trawl through the forum looking for threads directly relating to my sitiuation. So sorry
but here goes...
Facts -
House:
2 bed terrace, new Barrett home, located in Eastleigh, Hampshire. Eastleigh is currently undergoing substaintial development to it's shopping town centre (is this a good or bad thing regarding future house prices in the area?)
Asking price - £195,000
The house is a show house, so has alot already in it, white goods, floors covering, lights etc etc.
The development i feel is still fairly young, yet quite large, i'd estimate that less then 50% of the homes are completed.
Personal circumstances:
Budget - approx £196,000. This is made up from a mortgage DIP of around £134,000, plus a FTBI equity loan of around £62,000 through Thames Valley Housing. The loan has been approved and funds are available.
Savings - £1000 between us both
I will be starting my final year of uni come October, which is why i am eager to get everything done as soon as possible (probably not a good thing i know, but Barrett dont have to know that!)
The the advise i'm after is on the offer i should make tomorrow. Obviously i want the best possible offer for us, but i'm also eager to have to first offer i make accepted - i know it wouldn't be the end of the world if it wasn't, and i'm fully expecting that it wont, but it would be the most ideal senario if it was. This is what i had in mind:
£180,000 + incentives (to include stamp duty and legals fees included as a bare minimum, given the situation with our savings.)
How does this offer sound?
Likely to be rejected (stupidly low)? Likely to be accepted (reasonable offer)?
What other incentives could i possible throw into the negotiations?
Is there any further general advice when going in to make the offer?
Many thanks for your time reading and any advice you can give. Sorry again if this is a re-post, but i hope you can understand my reasoning for posting:o
Pete
I am new to the housing market as you can see, and new to the forum (which i think is great from what i've read so far!). I'm looking to make an offer on a new build house with my girlfriend tomorrow. The decision to buy has been a sudden one, although rational, and things are progressing very quickly. I do appoligise now if this is somewhat of a re-post, and the advise given is repeated, but because the offer is being made tomorrow i simply dont have time to trawl through the forum looking for threads directly relating to my sitiuation. So sorry
but here goes...Facts -
House:
2 bed terrace, new Barrett home, located in Eastleigh, Hampshire. Eastleigh is currently undergoing substaintial development to it's shopping town centre (is this a good or bad thing regarding future house prices in the area?)
Asking price - £195,000
The house is a show house, so has alot already in it, white goods, floors covering, lights etc etc.
The development i feel is still fairly young, yet quite large, i'd estimate that less then 50% of the homes are completed.
Personal circumstances:
Budget - approx £196,000. This is made up from a mortgage DIP of around £134,000, plus a FTBI equity loan of around £62,000 through Thames Valley Housing. The loan has been approved and funds are available.
Savings - £1000 between us both
I will be starting my final year of uni come October, which is why i am eager to get everything done as soon as possible (probably not a good thing i know, but Barrett dont have to know that!)
The the advise i'm after is on the offer i should make tomorrow. Obviously i want the best possible offer for us, but i'm also eager to have to first offer i make accepted - i know it wouldn't be the end of the world if it wasn't, and i'm fully expecting that it wont, but it would be the most ideal senario if it was. This is what i had in mind:
£180,000 + incentives (to include stamp duty and legals fees included as a bare minimum, given the situation with our savings.)
How does this offer sound?
Likely to be rejected (stupidly low)? Likely to be accepted (reasonable offer)?
What other incentives could i possible throw into the negotiations?
Is there any further general advice when going in to make the offer?
Many thanks for your time reading and any advice you can give. Sorry again if this is a re-post, but i hope you can understand my reasoning for posting:o
Pete
0
Comments
-
New Build? you must be stark raving.......you know the rest0
-
From what I have read on here, it seems the consensus for a new build is to offer at least 25-30% under asking price, and make sure the place you are buying is already built and ready to move into.0
-
By the way, when you say your savings are £1000, I take it that is what you will have left AFTER paying the solicitors fees, mortgage arrangement fees, deposit, etc?0
-
£1000 savings won't cover your fees. You don't have a job - you are a student, so how are you getting the mortgage? To get £134k of mortgage, your partner should be on more than £40k, as you don't earn anything at the moment. If with that salary all you managed to save is £1000, I don't think it is a good idea to buy at all, be it new build or not...
Is this a wind-up post?...
Edit: What about the deposit? Is it only Equity loan that you are using for a deposit? I think it is a very bad idea!!!!!Spring into Spring 2015 - 0.7/12lb0 -
New build? Attending Uni? Falling market? Even if your relationhip is stable this is a huge risk. What if when you finish Uni you are offered a good job miles away? This could be next year and it is more likely the property will be worth less not more then. You'll be stuck unless you can raise the negative equity to move and find a buyer.
Why on earth are you not renting? This is such a risk.
I also cannot believe this is a real post.0 -
I thought the same, but I had a meeting with an IFA last year when I was still at uni, but working all the hours under the sun that I wasn't at uni, and we decided we could afford a budget of around 150k if we wanted at that time. Things have changed since then though, so I'm surprised that he can get a such a high afforability...£1000 savings won't cover your fees. You don't have a job - you are a student, so how are you getting the mortgage? To get £134k of mortgage, your partner should be on more than £40k, as you don't earn anything at the moment. If with that salary all you managed to save is £1000, I don't think it is a good idea to buy at all, be it new build or not...
Is this a wind-up post?...0 -
Im sorry i should have mentioned, i'm a part-time student and have a very secure job at an architects practice with a salery of over £20k... my bad! lol0
-
Have you really looked into this?
Mortgage lenders typically require at least 5% equity to be put in by the borrower (not sourced from another loan) On a £195k property that amounts to almost £10k
You only have £1k
Now I'm not sure how that works with shared equity, but perhaps they say you are buying a £133k share in the property (£195k - £62k shared loan) and so need to supply 5% of £133k i.e. £6650.
Whichever way, I can't see anyone lending you almost 100% of the property value, even if via 2 loans from 2 institutions, where both loans are secured on the property."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
£180k for a 2bed terrace? You could pick up a 3bed semi for less than that in Southampton.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.8K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards