FTB - older or newer property?

driver85

First post on here, looking for some advice on what type of property to buy.

Bit of background...FTB, got a 10% deposit saved and have decided now is the time to buy. Not because we think the market has bottomed out but because we want to move out of rented accomodation into something we own.

We're interested in a number of properties but they broadly fit in 2 categories: 3bed semi, older property, needs a few improvements eg - new bathroom, good lick of paint etc - nothing too major
- 2 bed semi, newish (c.2-5 years old) wouldn't need a thing doing to it.

Basically we're trying to decide whether we're best taking a newer house as it's a safer option and won't need any work doing, albeit it'll be a bit small. Or if we should go for an older property with the risk that it might need work doing but which is bigger.

The houses we've viewed are similar prices, 2-beds are a bit more expensive but offset by immeadiate extra costs on 3 bed.

Anyway, just interested to hear some opinions on this and anyone who's been in a similar position previously? Thanks!

confused31_2

I wouldnt touch a new build, they lose a lot more money than traditional houses, and in my opinion are not built has good, most of the walls in new builds are paper thin.

Theres loads of post's on this subject already, but i think you will find most people wont touch new houses.

hethmar

Go for the 3 bed semi as long as you have the spare cash for any improvements.

ray123

Very true that new builds have a reputation of being a waste of money. The builders can barely give them away!
Also, I heard that some lenders will not provide a mortgage on a new build property for someone with a deposit of 25%, however, this should not be a problem as the government has a no.of schemes, as do the house builders to provide loans...

sarah_elton

How old is the older one?

My mum bought a 60s-70s build house a couple of years ago and has spent a lot on repairs to it. Houses that are 40 years old start to have things go wrong.

It depends how much cash you'll have in the bank after buying in case of any problems. If paying for any issues you uncover will be difficult, go for something newer. If you can afford to cover repairs, go for older as you tend to get more space and a better sized plot for your money.

Some people have said don't buy a new build, but you're looking at 2.5-5 years old. I don't think this is as bad as an actual new build - like a new car they should have depreciated a bit already.

confused31_2

sarah_elton wrote: »

How old is the older one?


Some people have said don't buy a new build, but you're looking at 2.5-5 years old. I don't think this is as bad as an actual new build - like a new car they should have depreciated a bit already.

they are still new build houses, with paper thin walls. they might be a bit cheaper has they are not brand new, but the build is the same, i think you will find most houses that are 10 years older and less, will be buit the same, maybe even longer.

What i have also seen with new houses they seem to cram them in right next to each other, by me theres a estate with detached houses, but the gap between them is about a foot.

Its has if with new houses, they have tried to get as many houses has they can in a little space and then they seem to have been built has cheap as they can, i suppose this is so they can make as much money as they can and thats what builders are out to do.

The other thing ive noticed with new builds the gardens are very small in aspect to the house, so you might get a big detached house, but it will only have a small garden, this is also down to the builder getting more houses on the plot.

whathavewedone

Definitely go for the 3 bed semi. Aside from the new build/old build issues an extra bedroom will mean that when you come to sell you can appeal to the family market and not just the FTB market.

The money you spend updating it will be worth it in the end. If you don't have the money right now just save up to do a room at a time. Get a full survey and if anything structural needs to be done you can negotiate the price downwards. If it's just dated decor etc then you can live with it until you can afford to do it.

GDB2222

I would go for the three bed semi-detached house, but for a different reason from the ones given above. If you buy at the moment, with a 10% deposit, you are likely to be in negative equity by the end of this year, and so you are not likely to be able to move until the property market picks up again, which may not be for another seven or eight years. Hopefully, the three bed house will be all right for you during that period, whereas you are far more likely to outgrow a two-bedroom house.

malli_2

I'll be watching this thread. :beer:

barnaby-bear

driver85 wrote: »

First post on here, looking for some advice on what type of property to buy.

Bit of background...FTB, got a 10% deposit saved and have decided now is the time to buy. Not because we think the market has bottomed out but because we want to move out of rented accomodation into something we own.

We're interested in a number of properties but they broadly fit in 2 categories: 3bed semi, older property, needs a few improvements eg - new bathroom, good lick of paint etc - nothing too major
- 2 bed semi, newish (c.2-5 years old) wouldn't need a thing doing to it.

Basically we're trying to decide whether we're best taking a newer house as it's a safer option and won't need any work doing, albeit it'll be a bit small. Or if we should go for an older property with the risk that it might need work doing but which is bigger.

The houses we've viewed are similar prices, 2-beds are a bit more expensive but offset by immeadiate extra costs on 3 bed.

Anyway, just interested to hear some opinions on this and anyone who's been in a similar position previously? Thanks!

Things you can't change at all or easily.... number of bedrooms, 3 is a lot more flexible....

but also location (you'll never be able to move the house) - older houses tend to be better located - new builds often in places people didn't build for a reason... further away from facilities/town centre/station, on flood plains, on toxic land etc.... but some older areas have deteriorated and are run down so not necessarily true and some new buid estates have decent facilities....

new builds on estates often on developments with 25-40% requirement for affordable housing (or trouble as it can be known) so check out the people who live there, maybe key worker but may also be the other type.... older areas avoid some of these issues....

spuds_2

I know that First Direct will only do 75% LTV on 'new' houses, ie. less than 2 years old. They are more likely to be harder hit by price falls.

I would definitely go for a 3 bed, though location should be a big factor in what you decide. As GDB says, a 3 bed is a house you can live in for a long time. You can quickly outgrow a 2 bed. Also, I would look for a house that you can add value to. You can put your own stamp on a place and new kitchens and bathrooms don't have to cost a fortune if you shop carefully.

Good luck.