Advice on buying a new build

Legacy_user

We are currently looking to buy a house on a George Wimpey development. There is only a show home built yet so we would be buying off plan. We have been waiting a while for the homes on this development to be released and have just been advised that the home we are interested in has been released at £230,000. George Wimpey are asking for a £500 reservation fee and are willing to loan us 10% to put towards our 10% deposit, which will be interest free but repayable in 10 years or if we sell the house at 10% of the market value at that time.

Now because of all the recent financial events in the media, my husband is quite concerned that we're buying at the wrong time. Do you agree? Are house prices going to fall further? Is there anyway we can proceed with a reservation without committing too much? Should we try to negotitae? If so, by how much / which extras.

I would really appreciate any advice.

Thanks.

Cat695

DON'T buy a new build especially now.....DON'T get taken in by this pay a bit now and the rest in 10 years......as soon as you move in you will have lost money

House prices are and will continue to fall........if i was you i would wait and continue to save a bigger deposit.......the more deposit you have the more choice you will have with mortgages and houses

I would say you would be making a BIG mistake if you was going to buy a new build now......!!

There are people on this forum who have had new build prices reduced by 70k (the house was priced 30+ grand more than what your looking at) so it goes to show......unless this is your dream house and your willing to take a BIG risk then DO NOT BUY NOW!!!don't put any money down what so ever

Anyway new builds are badly built

lynzpower

No dont researve one now whatever you do!!

there are LOADS of sites that have been started- then stopped. Some people have exchanged at this point- totally financially committed to buying it- then theyve stoipped building, the buyers cant pull out as they have to give 10% this is a NIGHTMARE.

WALK AWAY PLEASE!!!

poppysarah

They'll loan you the 10% deposit you haven't saved?

So you'll be borrowing all of it?

When you have saved 10% of the price of a house then come back and ask the same question.

Do you not think them lending you the deposit stinks of desperation to sell?

clutton_2

buy a second house house - MUCH better value = FAR bigger rooms - they have been "bedded" in and there are rarely "snaggings" like you get on new build sites - and their prices are established

New builds pricing is notoriously 0ver-egged.

brit1234

Uhm 100% mortgage. I hope you declare this to your mortgage lender or you are committing fraud if you hide it. Personally I don't no any lender providing 100% mortgages, they dissapeared a year ago (good riddens).

Walk away now and save a deposit or be prepared to go to prison if you decieve the lender and get a criminal record.:exclamati

check the article below to see the CML trying to stamp this out.

http://www.fool.co.uk/news/property-home/mortgages/2008/09/03/the-true-value-of-new-build-property.aspx

GDB2222

I strongly agree with the suggestions not to buy now, not to buy a new-build at all, and above all not to buy a new-build off-plan. For an example of how new-build prices can plummet see this post:
http://forums.moneysavingexpert.com/showthread.html?t=1170779

GDB2222

Oh, and if you are buying, well of course you should be negotiating extremely hard (try for 25%-30% off list price). It's not like buying a newspaper in WH Smiths.

System

poppysarah wrote: »

They'll loan you the 10% deposit you haven't saved?

So you'll be borrowing all of it?

When you have saved 10% of the price of a house then come back and ask the same question.

Do you not think them lending you the deposit stinks of desperation to sell?

I've just re-read my original post and it doesn't seem clear that I meant they will lend us 10% to add to our 10% deposit. We actually have a 20% deposit but they will only match up to 10%.

System

brit1234 wrote: »

Uhm 100% mortgage. I hope you declare this to your mortgage lender or you are committing fraud if you hide it. Personally I don't no any lender providing 100% mortgages, they dissapeared a year ago (good riddens).

Walk away now and save a deposit or be prepared to go to prison if you decieve the lender and get a criminal record.:exclamati

check the article below to see the CML trying to stamp this out.

http://www.fool.co.uk/news/property-home/mortgages/2008/09/03/the-true-value-of-new-build-property.aspx

No it isn't a 100% mortgage at all. I own 3 properties in addition to the 1 I'm living in at the moment and I never have nor would I ever dream of getting a 100% mortgage. We have a 20% deposit and and I was simply stating that George Wimpey had offered to match our deposit up to 10%. I may not have made my self too clear, so apologies.

System

clutton wrote: »

buy a second house house - MUCH better value = FAR bigger rooms - they have been "bedded" in and there are rarely "snaggings" like you get on new build sites - and their prices are established

New builds pricing is notoriously 0ver-egged.

That's what we thought too but this house is very spacious (not just looks wise, I've compared measurements). We live in a really rough area at the minute (very, very bad decision!) and my little boy is nearly 3 now so I have been desperate to move for over 2 years. This new build is in the ideal location and we have waited ages for the developer to release it but now there is all this worrying stuff going on in the media.

Dream house or not, I don't want to make another bad decision amd regret it for years. Thanks for your post.