Advice on buying a new build

GDB2222

babycakes2k wrote: »

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.

So, what will you do with the one you are living in now?

GDB2222

I just noticed that nobody has mentioned the major problem with buying off-plan at the moment. The standard contract from the builders has a 2 week completion clause in it. That means that you have to complete 2 weeks after the house is built. However, there is no clause requiring the builder to build it by a specific date. So, with the market so slow at the moment, the builders collect buyers and keep them waiting until they have enough to make it worth going on site and actually building the houses. There are horror stories on this forum of people waiting over a year, during which time they were locked into a contract and their mortgage offer expired.

Catblue

Compare the asking price for the new build with older houses in that area. Make sure you take plot size into consideration. Few new builds have a decent size garden.

One of the problems with new builds (in my opinion) is that square footage rarely equates to usable floor space. There are ensuites a plenty, but no real space for storage.

If you don't like the area you are currently in, why don't you move into one of the three other properties that you own?

System

GDB2222 wrote: »

So, what will you do with the one you are living in now?

Let it out.

System

Catblue wrote: »

Compare the asking price for the new build with older houses in that area. Make sure you take plot size into consideration. Few new builds have a decent size garden.

One of the problems with new builds (in my opinion) is that square footage rarely equates to usable floor space. There are ensuites a plenty, but no real space for storage.

If you don't like the area you are currently in, why don't you move into one of the three other properties that you own?

They are currently being let out and would also be too small for our family.

System

GDB2222 wrote: »

I just noticed that nobody has mentioned the major problem with buying off-plan at the moment. The standard contract from the builders has a 2 week completion clause in it. That means that you have to complete 2 weeks after the house is built. However, there is no clause requiring the builder to build it by a specific date. So, with the market so slow at the moment, the builders collect buyers and keep them waiting until they have enough to make it worth going on site and actually building the houses. There are horror stories on this forum of people waiting over a year, during which time they were locked into a contract and their mortgage offer expired.

The developer's for some reason have only released prices on 6 properties on the development and the plot we were interested in is one of them (it would be wouldn't it!). Any ideas why they would do this?

I really don't think we will proceed at the moment, maybe just find somewhere to rent for a while but out of curiosity, what would happen then if your mortgage offer expired or the value of the property dropped even further by completion. Would you not be able to withdraw from the sale?

GDB2222

babycakes2k wrote: »

The developer's for some reason have only released prices on 6 properties on the development and the plot we were interested in is one of them (it would be wouldn't it!). Any ideas why they would do this?

I really don't think we will proceed at the moment, maybe just find somewhere to rent for a while but out of curiosity, what would happen then if your mortgage offer expired or the value of the property dropped even further by completion. Would you not be able to withdraw from the sale?

I don't know for sure why they have only 'released' 6 plots. Presumably, this way they can say 'only 6 plots available, so hurry!'. I would guess that if they thought they could sell more they would release more. I thought that the big builders were only selling around 1 property a week at the moment?

There are indeed horror stories on here about people whose mortgage offers lapsed some time ago. With the tightening of the mortgage market they have been unable to complete their purchases. They have lost their deposits and must reimburse the vendors for any shortfall in the prices the properties eventually sell for.

Natty082

Near us they are 'building to order' ........ which means they won't build until they have a large number of properties reserved........... could be in for a LONG wait..........

Banderman

Cat695 wrote: »

Anyway new builds are badly built

In most cases you'd be better off with a tent

neverdespairgirl

babycakes2k wrote: »

Now because of all the recent financial events in the media, my husband is quite concerned that we're buying at the wrong time.

1. Do you agree?

2. Are house prices going to fall further?

3. Is there anyway we can proceed with a reservation without committing too much?

4. Should we try to negotitae?

5. If so, by how much / which extras.

My personal view is:

1. Yes.

2. Yes

3. Don't know - depends on the t & c

4. If you absolutely have to, negotiate it down a lot.

5. Don't worry about free carpets, focus on paying less.