Can you negotiate on the Purchase Price on a Housing Association New Build?

icebergx

At the end of the day, if you can buy anything at the right price, in can make sense.
Do your sums, offer low, find out the rental increase T&Cs and don't over-stretch yourself.
Some of these schemes can be very good (and relatively cheap) but it all depends on price.

losborn9

Hi Dean
I disagree with some of the replies here...we have done quite well out of our s/ownership.
We found or housing assoc undervalue their s/o properties...our flat was valued for 135k 3 years ago and the same flats were going for 145k privately. In our area at least, it seems that the H/a undervalue properties compared to a traditional estate agent (who is obviously a vested interest in getting a high a price as possible) Now the h/a value our flat at 142k privately it's about 150k. I think the h/a undervalue because they have much more in depth valuations (theirs include things like supply/demand of like properties in that area which standard valuations do not) I think this is what makes them work; because they undervalue you are almost guaranteed equity.
If we sold today, we would make 8.5k equity in 3 years; quite a good return in this market, for such a small mortgage 67,500. They don't always take ages to sell, in some areas they are in real demand and in this market it can be the only way some people get on the ladder.
Our rents never went up once in the 3 years so far.

Why not look at slightly older properties (resale s/o) then you can negotiate..we want to sell ours and we would prefer to knock a grand or two off the price than to have it unsold for months.

Good luck

icebergx

losborn9 wrote: »

Hi Dean
H/a undervalue properties compared to a traditional estate agent (who is obviously a vested interest in getting a high a price as possible) Now the h/a value our flat at 142k privately it's about 150k. I think the h/a undervalue because they have much more in depth valuations (theirs include things like supply/demand of like properties in that area which standard valuations do not) I think this is what makes them work; because they undervalue you are almost guaranteed equity.

This isn't the norm. I've had many occations where H/As over value and purchasers surveyor's valuations have come in lower (10-12% lower). H/As are often subsiduries or connected to private developers so they do have a bit of a vested interest in maintaining high prices.
This interest is also way more than significant than that of an Estate Agent. Say an EA was to some how magic an offer of £10k above mkt value. If they're being paid 1.5%, that'll ony equate to an increased commission of £150. Do you really think that would be enough of an incentive for them and worth them doing potentially doing a lot more work?
The individual sales people will, in all likely hood ony make £20 to £30 pounds more.