Buying a new build

adamwilliams50

Hi there,
Im in the process of looking at buying a new build property.
It's a 2 bed a apartment and was originally on the market (4 months ago) at £169,950.

The builder has since dropped the price by £22k to £147,950.

What would you see as a reasonable offer in the current housing climate?
I was thinking of going in at £125k (15% under) - but i'm not sure if this is way too cheeky?

I'm a believer in "don't ask don't get" but is this pushing it?

Any advice would be greatly recieved.

beingjdc

I think that's very generous. Without knowing the area it's hard to say, but I'd be tempted to start even lower. Or wait and see what happens to prices, it obviously isn't being snapped up. By then you may see some Land Reg recorded sales and see what prices he's been accepting in the rest of the block.

GDB2222

adamwilliams50 wrote: »

Hi there,
Im in the process of looking at buying a new build property.
It's a 2 bed a apartment and was originally on the market (4 months ago) at £169,950.

The builder has since dropped the price by £22k to £147,950.

What would you see as a reasonable offer in the current housing climate?
I was thinking of going in at £125k (15% under) - but i'm not sure if this is way too cheeky?

I'm a believer in "don't ask don't get" but is this pushing it?

Any advice would be greatly recieved.

You haven't said anywhere what the property is worth, just what the asking price is.

truman_sparks

GDB2222 wrote: »

You haven't said anywhere what the property is worth, just what the asking price is.

Not being picky at all,

but isnt it worth whatever you can sell it for?

or do you mean what its worth at a certain time, ie now as some have sold at a certain price this month?

I think its a bit of a brain teaser to try to asses what something is worth at the moment, its a bit too subjective in an uncertain market.

My own take is, unless a property is 40% ish under current market value (based on estate agent prices and 2006 prices for same street) its worth nothing, if you know what i mean .

ixwood

Don't do it. A new build flat now is probably the worst investment/purchase possible. Half the original price and it'll more reasonable.

truman_sparks

missed that its a flat, as above, change 40% to 50%.

some are changing hands for 50% below 2006 prices already.

Not for the faint hearted because the figures the op is looking at means approx 30k neg equity is easily achievable in 18 months.

Nice!

LandyAndy

Offer 89,950 and wait.

New build flats are the single biggest sector influencing the 'apparent' huge drop in property prices.


Fill yoir boots.

niceguyed

We don't even know what area or what development and already people are saying don't buy regardless of the facts. As soon as the words "new build" are mentioned you get the same tired blinkered comments. Some comments may be close to the mark but others are almost scripted, herd mentality. Now, I'm not for one second saying in some cities with a high concentration or percentage of stock of flats/apartments/studios people were paying way over the odds in 04/05/06. When for the same price or less you could get more space/extra room/better build quality with an older house, terrace, semi etc. All things are not equal and there are some reasonable developments out there which as long as you do your homework can represent good value compared to more traditional housing. Just remember you are buying space, get clued up on your metre squared which is where a lot of investors/first time buyers went wrong buying those "aspirational" one bed rabbit hutches. What are other property types in the area going for with similar space in reasonable nick? All I can say is do your research and base your offer on that rather than rely on opinions from strangers who aren't even blessed with all the facts of the property in question.

ixwood

Own a new build flat do we? Sorry, I mean luxury apartment..

Buying anything now is crazy. Buying a new build is crazy. Buying a flat is crazy. Put them together and it's bad news.

Never mind. I'm sure your flat is very nice and it is a home, not an investment after all.

Treadmill

Offer 100K and don't budge on it, they will reject it out of hand, when they ring you back in about a week... knock your offer down by another 10K, If its not already finished I would steer clear of buying it as its going to be worth less by the time you complete and that affects LTV etc. I doubt it will be sold anytime soon so play it cool

hethmar

Adam, my son has just had an offer accepted on a flat which was £330k as a newbuild. Was sold last year for £300k - son has offered just over 50% of that price and been accepted. It was a repossession though, which makes it a bit more liable to low offers.

Flats which are still new builds on the development are going for £265-285k at the moment. I was wary of him buying this place but it is in a nice position and convenient for the tube. At the price he has offered he should be buffered against massive drops.

If you really love the flat you have seen, make the offer you were thinking of and see their reaction.