It's legal, but is it moral??

tiamai_d

So here is the deal, I have been qweuing for a new build the past two days and so far, I will get a 3 bed not yet built house for lets say £130k.

There is a huge demand becuase this type of new house in my area is worth over £150k on the market.

After looking at our personal finances we can afford thsi house (and morgage) but we have to say goodbye to impulse buys and saving and lots of little treats.

Our estate agent has told us that if we get into difficulty we can still sell the house after the missaves have been signed but before the move in date (June 09).

The appeal of making cash is appealing (it would go toward our small morgage on our smaller-not-as-nice 2 bed house.

I am torn 50/50, I want this new house it is everything we want, but also the idea of lowering our morgage on our existing house is equally appealing.

So opinions everyone, greedy cow or make money where you can?

lynzpower

Let me get this right.

You are thinking about signing missives ( is that the same as exchanging in England- I get the sense it is) on a property that is not yet built.

You then believe that you will be able to sell this property before it is built - to someone else for more.

Or you might actually live in it yourself?

I suggest you serarch this forum for "new build missives" and see what other MSErs have found. they have found that properties aree not being built, sites abandoned, that they have to pay X price for a property that has devalued, that lenders wont lend adn the property is not built

I WOULD NOT RECOMMEND YOU SIGN MISSIVES ON A PROPERTY NOT YET BUILT.

Cat695

Just one question

How are you going to make money on a house when house prices are coming down???

And especially as new builds are taking the biggest hit??

AND how can you say your debt free....when you have a mortgage??

I know thats two questions.....

Running_Horse

If you believe you can make money from property in this market, and if that's what the developer and your estate agent told you, then you should buy ten of them. Prices only ever rise and you can't lose.

lynzpower

Running_Horse wrote: »

If you believe you can make money from property in this market, and if that's what the developer and your estate agent told you, then you should buy ten of them. Prices only ever rise and you can't lose.

RH

Please be aware that some newbies wont understnd your sarcasm, and may well believe you and run headlong into doing so :eek:

clearly OP is vulnerable to believing EA patter about the markets- I worry she will think you are being serious

stonethrower

I wouldn't touch a new build full stop. I work in the building industry and the standard of 90% new builds is shocking. If you are going to do it for a quick buck good luck.

Running_Horse

Naughty me. Must not tease the ever optimistic amateur property barons.

roddydogs

Course you can still make thousands-didnt you watch "Homes under the Hammer"?

tiamai_d

Firstly, where I live house prices have not gone up enough to go down.

Secondly, the builder is a company who have built thousands of houses so not likely to go out of business.

Thirdly, I do understand sarcasm.

Fourthly, I don't see a morgage as 'debt' and I couldn't care less if you think dfferent.

Fithly, I have not yet decided whether to live in the property or not, and it will probably take till June for me to decide.

ad9898_3

Is this a wind up?, the OP has a large post count, so can't believe they can be so naive. Anyway the answer to the question is no, no, no and er no.

poppysarah

tiamai_d wrote: »

Our estate agent has told us that if we get into difficulty we can still sell the house after the missaves have been signed but before the move in date (June 09). ?

Never mind the EA what does the independent legal advice (completely not recommended by the builders/developers) say?

There's no such thing as each money, but a fool and his are easily parted.

Give up the " impulse buys and lots of little treats." for 2 months before you make a decision - and put every penny you've got other than bills & absolute essentials into a untouchable for 3 months account.
After you've discovered you can/can't live like that, then make a decision.