Builder Incentive - Try B4 U Buy

MICKUPTON

We've seen an 3 bed townhouse (new build) on a development in Wakefield by Portford Homes.

We first time buyers who would have bought however they wouldnt knock off more than £20K off with no other incentives (carpets etc) - the house 1 year ago was £225K, they went down (after lots of negioution) £205K!
I thought this is still overpriced so we walked away.

Anyway we got a call on Friday offering us the house on a 12 month rent with an option to buy at the end of it for £205K

What do you think the chances are i could re negosiate at the end? my thoughts are it would no longer be brand new and with probable further falls i should get cheaper

what are peoples thoughts on this offer?

poppysarah

You'd get it a lot cheaper in a year. Even if it hadn't been lived in by tenants.

alisonp_2

On a rent to buy/lease option scheme the price will be fixed when you sign the tenancy/option to purchase agreement. Your deposit and rent payments should then go towards the deposit when you buy the house in 12 months.

The sellers are legally bound to sell to you at that price but you can decide not to proceed.

If at the end of 12 months you decide not to go ahead and buy you risk losing your deposit and rental payments.

Be very careful what you sign and have any forms given to you checked over.

abbecer

I think that is very expensive even with the discount. I live in a fantastic new build in Hemsworth. It is a 4 bed detatched period looking house. I only paid 173k.

Do you definitely have to live in Wakefield?? You might get better value to move your search a bit.

Rebecca x

spuds_2

What would it cost to rent a house like that anyway? If it is the same, or less, then you are better off waiting. They are basically saying they think their house will be worth £205k in 12 months time - do you think houses in Wakefield will not lose value in the next year? I would guess they will - so wait a bit longer. They are trying to tie you in to a set price - as another poster says be very careful what you sign.

I bet if you say no they will come back with a better offer in a few weeks time.

geoffky

who was the seller ..!!!!!! turpin..they must love you

MICKUPTON

It's portford homes
why do you say that?

phil_b_2

£200k+ sounds pretty damn expensive for a townhouse in Wakey. I widened my search from Leeds a while back to see what was on offer and there seemed to be loads of new builds flooding the market around Wakefield.

They are having a laugh if they think it'll still be worth £X in 12 months time too.

MICKUPTON

On the price I totally agree (read my first post, I walked away) however the plan is, I move in, live in it for a year then hopefully renogiate the price in 12 months. If not move out and on.

my question was how likely do people think I'll be able to do this, just wanted other peoples thoughts on it.

poppysarah

Living in a new build is quite nice - friends told me - apart from the lawn never got put down, the carpets were the lightest colour off white possible and they had to pay for a wheely bin! OH and all the nightmare of sorting out water rates, meters for gas and electric and ringing people who declared quite happily that your street doesn't exist.

epz_2

I have noticed the trend of developers renting out their new builds the cant sell.

Essentially developers do this for 3 reasons and are more desperate by comparison to a landlord that bought a place 10 years ago,

a) they want to raise some income to pay the interest on the capital they have spent.

b) they will be unable to sell to anyone still interested if the rest of the estate is still empty.

c) they dont want to maintain the houses empty, especially given the bodges many newbuilds are, a burst pipe would be a minor issue for a tenant to report but a lot more expensive to repair if not noticed quickly.

as such if you are considering renting i would negociate hard on the rent even if you have no intention of buying saying things like you will need time to save up extra deposits etc and use this opertunity as a way to reduce your outgoings for a year.