New build advice pls!

Cat695

NoDebtForMe wrote: »

Whats with all the exclamation marks ???????? Be careful cos it looks a bit aggresive
Im not saying mine will be built quicker. I have no idea. Ive never bought a newbuild before and dont work for a builder.
Like I said everyone has their own opinions.

It wasn't an opinion its a fact that houses aren't being built at the moment

And believe me I'm about as aggressive as a cheesey wotsit;)

I am just warning the OP in buying an unbuilt house in a recession where these companies are in trouble.

NoDebtForMe_2

Cat695 wrote: »

It wasn't an opinion its a fact that houses aren't being built at the moment

And believe me I'm about as aggressive as a cheesey wotsit;)

I am just warning the OP in buying an unbuilt house in a recession where these companies are in trouble.

I absolutely agree with you and the thought had crossed my mind too but the fact remains what someone has already mentioned in that you dont pay till it has finished so what have you lost? In my case I either get the newbuild or stay where I am. If it takes longer to build then I just remain in my house dont I? What have I lost? The fact that they have bought my house from me feel puts me in a better position as well as they have said I remain in it until it's built so if they sell it and Im in it they cant complete.
I may be in cloud cuckoo land but it comes down to what you feel is right at that time really.
Sarah x

Cat695

NoDebtForMe wrote: »

I absolutely agree with you and the thought had crossed my mind too but the fact remains what someone has already mentioned in that you dont pay till it has finished so what have you lost? In my case I either get the newbuild or stay where I am. If it takes longer to build then I just remain in my house dont I? What have I lost? The fact that they have bought my house from me feel puts me in a better position as well as they have said I remain in it until it's built so if they sell it and Im in it they cant complete.
I may be in cloud cuckoo land but it comes down to what you feel is right at that time really.
Sarah x

well I'm guessing the OP is renting so she will have lost a years money on rent....lost any interest on her deposit money....house prices have and will continue to drop so the value of the house has dropped (but your still paying last years price)

The Mortgage company will not mortgage the house because its dropped in price but the builder won't shift on the price because it will be at a loss....you then can't get a mortgage but your in a contract to buy the house so the builder sues you (which has happened). You lose your deposit and you have legal fees to pay....worse case scenerio but has happened.

ANd its a year of your life worrying and thinking about it....when you could be in your nice new home

pinkshoes

Personally I wouldn't touch anything that was even just at foundation levels, let alone not even built yet.

Firstly, you won't even know if it will get built, say if the builder goes bust.

Secondly, you don't know what prices will be like around the completion date, so could end up either with a bargain, or paying completely over the odds.

Thirdly, you don't know what the financial market will be like upon completion, and you could find yourself unable to get a mortgage.

Why not buy something that's already built (or very nearly completed), or wait until they're finished and then buy one.

With our newbuild (small local builder building small development), we only had to pay a £1000 holding deposit, then exchange and completion only happened when the building was finished.

NoDebtForMe_2

Ive already spoken to my mortgage adviser about any decrease in value and she claims it wouldnt be a problem as all that would occurr would that we would go into the next bracket for something (didnt quite understand what she meant tbh but will be asking again) Apparantley the surveyor will go and see an equivelant house already built and price it with the decline in mind. (?) Not sure how it works but she felt it wouldn create thetype of problem you are saying. Why would she have lost a year in rent? She is paying for a home and gets a home.
Pink shoes - We only had to pay £500 and then exchange will take place with no other changing hands until it's built so slightly better than your situation.

Darth_Marty

The vast majority of developers cant build at the moment because they cant afford to build a whole estate and then not sell them. In this particular case if the property is purchased and a deposit is given then the builder will build and build quickly, after all its on completion that they get the remaining funds and whatever profit they still manage.

There are too many problems being mentioned which just arent there in many cases, do your homework of course but its by no means the terrible risk which its being made out to be.

System

We are currently renting but only because we need to be near family at the moment. We do actually own 2 other properties but they are being let out. We hate where we live and are desperate to move but the delay in a house being built is not my major worry. The way I see it, it would just give us more time to save for furniture, extras, etc. However, I don't want to be waiting years!

My main concern is losing the plot of our choice and the only advice given to me on this forum that is holding me back is if the developers go bankrupt and we lose our significant deposit (they are asking for 10% at exchange of contracts which is £19,000) or that they stop building before they build ours or even stop building after they've built our selected plot and we end up stuck on a building site!

Also, about 18 months ago, we reserved another new build by a smaller developer and on the day the contracts were due to be exchanged, it turned out that as they were having problems selling the properties, they had sold the majority of them to a housing association who in turn were going to rent them out. We lost a lot of money then and I would hate for that to happen here too... What do you think the likelihood is?

poppysarah

babycakes2k wrote: »

We are currently renting but only because we need to be near family at the moment. We do actually own 2 other properties We lost a lot of money then and I would hate for that to happen here too... What do you think the likelihood is?

High.
If you can afford to throw the money away then send it this way.

System

poppysarah wrote: »

High.
If you can afford to throw the money away then send it this way.

Thanks for your reply.

We're not rich but are financially ok. However, we've worked very hard and sacrificed a lot to get here so we don't want to be throwing money away, no matter how much we've got, so I suppose we'll have to wait a little longer to see how things pan out.