offered a good deal on a newbuild flat....but not a house

k1984

Hii,

Ok asking for some more advice.

The area we're looking at (renfrewshire, scotland) is giving some cracking deals. I went in to the sales office and was offered a 2 bedroom flat down from £154,000 to £110,000! (saving of £44k equivilant to 30%)

However, after taking advice from most people on here (and elsewhere) I ve decided that buying a new build flat may not be the best way forward.

Ive turned my focus on either a 2 bedroom or 3 bedroom new build (good idea or not?). Possibly a townhouse or end terrace.

Anyway the prices I was offered werent that great - I was offered a 3 bedroom townhouse with detatched garage for £175,000 down from £195,000 (saving of £20k quivilant to 10%)

I asked why the flats were going for 30% off and the houses are only 10% off but was never really given an answer. does anyone know why this would be? and when im ready to put an offer in should i put in 30% off or what?

Also I was looking at their plans and the sales girl said that completion for the whole area was due in 3 years however that isnt the case now. It looks like they have only built 20% of the area. Would anyone stay clear or would that not be an issue? I would only put an offer in on a house that was completed but not sure how it would be if the area wasnt complete.

Thanks in advance.

K

socrates

The amount they are dropping the price by is irrelevant - what are they actually worth?

I could say I was selling a flat for £200k dropping it to £100k - if its only worth £80k the discount is irrelevant.

Forget what the sales people tell you. Their only job is to get you to sign on the dotted line - if they want to make promises get them to put them in writing

k1984

How do i find out what a new build is worth?

Should the percentage drop not be the same though? if they are dropping a flat by x% should they not be reducing houses by the same?

That might sound stupid however im just a newbie.lol

cheers,
K

socrates

If you are a newbie you should not be jumping into anything - use rightmove and propertybee to do your research.

There are other posters on here who are experts on propertybee and track prices and trends. Do a search on google for it.

Personally I would not touch a new build.

k1984

socrates wrote: »

If you are a newbie you should not be jumping into anything

You have to start somewhere though. I wont be jumping into anything - wont be buying anything until summer at least.

Correct me if im wrong, but the like of rightmove give prices for houses/flats at the price the seller wants - it doesnt really help with getting a true value for a house?

socrates

Thats why I said propertybee in conjunction - you look at whats available on RM - see whats relevant and use propertybee to look at the trends.

Zelie

Newbuilds have no set value. Their value is not determined until somebody has bought them. Ergo you are going to be the person who decides the value. Make an offer based on what you think it is worth and what you can afford. The builder will advise a price based on their expenditure and expected profit margin. You will meet somewhere in the middle.

k1984

Zelie wrote: »

Newbuilds have no set value. Their value is not determined until somebody has bought them. Ergo you are going to be the person who decides the value. Make an offer based on what you think it is worth and what you can afford. The builder will advise a price based on their expenditure and expected profit margin. You will meet somewhere in the middle.

thanks zelie,

do you think there is a reason that tehy only reduced it by 10% as apposed to the 30% reduction on the flats?

Maybe a stupid question - what would be an appropriate offer?

Cheers,

K

socrates

k1984 wrote: »

thanks zelie,

do you think there is a reason that tehy only reduced it by 10% as apposed to the 30% reduction on the flats?

Maybe a stupid question - what would be an appropriate offer?

Cheers,

K

I thought you was not buying until the summer?

Why would you need to make any kind of an offer?

Doozergirl

New build flats have always been incredibly expensive, much moreso than houses.

The huge demand for BTL proeperties was met with an even greater supply of new build flats. Bizarrely the actual demand from people wanting to live in them was less than the number wanting to rent them out. A great number are half empty and a great many number with PP are left unbuilt. It would be fair to say that the BTL bubble has truly burst.

I honestly can't comprehend how people thought that prices would rise continuously and paid no heed to the actual income they might achieve from properties OR bother viewing a flat or even visit the area in some cases, let alone compare the price and size of the flat to the prices of houses in the vicinity. Looking at Birmingham, you could buy a decent house in a decent area for the same price as a 2 bed [strike]magnolia shoe box[/strike] apartment I don't know how the developers got away with it for so long.

Mortgage companies are very wary of new build, especially flats and this is reflected in the prices that the developers can achieve - if mortgage valuers confidence has gone then the developers don't stand a hope of selling them because even if buyers want to pay their asking prices, they can't raise the mortgage on them.

A new build flat in an area which doesn't have lot of flats is okay - it's just that the number of flats needs to be proportional to the demands of the population.

City centre luxury living was such a huge White Elephant. The idea that living in a flat is cool is a little odd. I think it was the London factor but people in London live in flats because they have to! There's no space for everyone to have a house like they do where I live now,

k1984

socrates wrote: »

I thought you was not buying until the summer?

Why would you need to make any kind of an offer?

Thanks dad

Im asking so i can get an idea of what kind of money id be talking about. Like to be prepared, especially with £££