So house building carries on?

carefullycautious

Is this a more realistic pricing.

Persimmon are building a development on the old gas works site in Redditch called Windsor heights B97 post code and they are marketing a three bed end of terrace for 114,000 (sorry not able to do links) It is on rightmove. This site is just starting up. They are still doing 'The 75%25% scheme' that most people love to hate. So what do peeps think of this? Still too high.

Most properties in this postcode are still in the denial stage and do not seem to be dropping in price except for repos, houses in bad areas and flats.

anotherpaul_2

It might be a reasonable price, but be very cautious buying off-plan or on incomplete developements. There a higher then normal risk the developer will go bust and fail to complete the house or the infrastructure.

Also, consider where house prices are likely to be when it's actually finished and you can move in.

SavingSteve

anotherpaul wrote: »

It might be a reasonable price, but be very cautious buying off-plan or on incomplete developements. There a higher then normal risk the developer will go bust and fail to complete the house or the infrastructure.

Also, consider where house prices are likely to be when it's actually finished and you can move in.

This is an important point often neglected.

There have been threads on here in the past with regards a developer not getting a road 'adopted' by the council as the developer has gone bust.

Suppose the point of my post is that even if a development is partially completed (i.e. in phases) until the whole is completed and relevant contracts signed re adoption of the infrastructure then new builds carry certain risk.

carefullycautious

Hmmm thats funny in the local paper they are now marketting the first phase of 3beds for 164,999 and asking people to come along to the open day. There is nothing on the site at present

I have no intention of buying into this or any other development, also not the right area. With unemployment rising in this area only one thing can happen and they will eventually become homes for tenants at a greater ratio than private. Exactly what happened to the op in Hampshire who paid such a high price.

Im amazed that builders are able to fund this at the moment.

anotherpaul_2

carefullycautious wrote: »

Im amazed that builders are able to fund this at the moment.

I suspect there's an element of continuing with development because stopping and not completing them is too expensive - all the money tied up in part finished, unsellable, properties.

Some of them do seem to be starting new developments though, which does seem crazy.

Having said that, if you already own the land and can build a house on it for 50K and sell it for 100K (where you would have got 150K a year ago), you're still making a profit. I think the problem is the quantity of new builds (and other properties) that don't sell at any (reasonable) price at the moment.