Persimmon Homes

wsharp

We looked at a Persimmon's development today. There are 2 choices for us, 3 beds the asking price is 190k and they said would low down to 170k, and 4 beds the price is not released yet as its in their next year's development plan but they are going to release it for us tomorrow and let us know the price. So my questions are: Is Persimmon reliable? How much discount should we ask for?

Any advice would be much appreciated.

Thanks

QTPie

Personally - not matter who the developer is - I would be VERY weary about buying "off plan" at the moment...

....Firstly, if money is tight, then they will delay and delay the construction (you will VERY likely not get it when you expect to).

....Secondly the house may very well be worth nowhere near what you have agreed to pay for it now, when it is completed. You may be ok if you decide to pull out and just loose the rservation fee (£500/£1000?), BUT most developers will push for an early as possible exchange of contracts (quite possibly 6/9 months before "due" completion).

Although I don't think now is necessaily a bad time to buy (IF you get the right house, for the right price and intend to stay there some time) - we will start looking in about a month - I don't think it is a good time to buy a new build off plan. A completed "ready to move in" new built at the right price is a different matter.

Good luck
QT

wsharp

QTPie wrote: »

Personally - not matter who the developer is - I would be VERY weary about buying "off plan" at the moment...

....Firstly, if money is tight, then they will delay and delay the construction (you will VERY likely not get it when you expect to).

....Secondly the house may very well be worth nowhere near what you have agreed to pay for it now, when it is completed. You may be ok if you decide to pull out and just loose the rservation fee (£500/£1000?), BUT most developers will push for an early as possible exchange of contracts (quite possibly 6/9 months before "due" completion).

Although I don't think now is necessaily a bad time to buy (IF you get the right house, for the right price and intend to stay there some time) - we will start looking in about a month - I don't think it is a good time to buy a new build off plan. A completed "ready to move in" new built at the right price is a different matter.

Good luck
QT

Thanks QT :beer:

We are just looking at the moment, wont commit ourselves into anything maybe in a month or 2 months time, as we got to open our restaurant first next month, then after that we'll serious about put a deposit down for a house...so by then, the price may go down a bit further (hopefully)... I wish we could buy a new built ready to move in, but at the current market doesnt seems like it...I've read another thread about delays, some people was suggesting ask the solicitor to put a date on the completion...It's a very difficult decision:mad:

Pssst

Check if the development is part social housing in case thats an issue ..

elspeth240

....Secondly the house may very well be worth nowhere near what you have agreed to pay for it now, when it is completed. You may be ok if you decide to pull out and just loose the rservation fee (£500/£1000?), BUT most developers will push for an early as possible exchange of contracts (quite possibly 6/9 months before "due" completion).


I know of at least 6 people who are being threatened with Court action by Persimmon because of exactly what QT is describing. They could no longer get a mortgage as the value had dropped when the property was completed or they couldn't sell their own property to finance the purchase. Persimmon are now trying to get tens of thousands from 4 people and will not allow the other two to withdraw.

PS
They don't have a very good reputation as a builder either.

QTPie

wsharp wrote: »

Thanks QT :beer:

We are just looking at the moment, wont commit ourselves into anything maybe in a month or 2 months time, as we got to open our restaurant first next month, then after that we'll serious about put a deposit down for a house...so by then, the price may go down a bit further (hopefully)... I wish we could buy a new built ready to move in, but at the current market doesnt seems like it...I've read another thread about delays, some people was suggesting ask the solicitor to put a date on the completion...It's a very difficult decision:mad:

Take your time: starting a new business can be stressful (especially financially) by itself - very good luck with that by the way!

Husband has his own business and it took a few years for financial confidence to grow.

Also have a GOOD look at what you can get for your money: often you can get much more spacious properties (with bigger rooms and better storage) and on bigger plots and with much more longer term "potential" than new builds...

We are currently in a new build (we bought off of plan, but 5 years ago) and it is a very nice one, but it doesn't have any potential to exploit and we are just "out-growing it" (a lot sooner than I thought we would when we bought it!). We have exchanged contracts to sell it today.

So have a goooood look around to see what your money will get you

QT

SkipE

I would second what is said above about being cautious about buying off plan at the moment.

We were unable to complete on a new build due to mortgage offer expired and the value of the house going down etc. We were VERY lucky to only (and I use that term loosely) loose our deposit (10%). Which is a hell of a lot of money with nothing to show for it.

there are some bargains out there to be had so you may be lucky. Do your research first and check the contact very carefully.

I worked for Persimmon Homes many years ago. I did not enjoy it because of the complaints we recieved. I have no idea if they have improved since then. I would hope they have.

Good luck whatever your decision.

fergual2

Well I would not buy new you pay a premium over the going market rate. Smaller plot smaller rooms etc. The house prices have not bottomed out and I have insider info that housebuilders are looking at 3-5 years before recovery. So I would hold out for a big discount or further drops. If you must buy now Persimmon is actually better than average in terms of build quality and that comes from someone I know who inspects new builds for a living. If you want to check out build quality on site and some homes are lived in why not check with them 1st and get there feedback on site and any issues seen.

wsharp

Thanks for all your advice. This is the house we are looking to buy from Persimmon http://www.persimmonhomes.com/detail.aspx?development_id=2885 (if you hoover your mouse over the small pic its the 2nd from left - called Winster). How much do you think its worth buying at the current market and take price continue to dropping into consideration...

wsharp

elspeth240 wrote: »

....Secondly the house may very well be worth nowhere near what you have agreed to pay for it now, when it is completed. You may be ok if you decide to pull out and just loose the rservation fee (£500/£1000?), BUT most developers will push for an early as possible exchange of contracts (quite possibly 6/9 months before "due" completion).


I know of at least 6 people who are being threatened with Court action by Persimmon because of exactly what QT is describing. They could no longer get a mortgage as the value had dropped when the property was completed or they couldn't sell their own property to finance the purchase. Persimmon are now trying to get over £35k from 4 people and will not allow the other two to withdraw.

PS
They don't have a very good reputation as a builder either.

Could you please explain to me why the house price drop would effect mortage? Sorry, not good at maths

wsharp

QTPie wrote: »

Take your time: starting a new business can be stressful (especially financially) by itself - very good luck with that by the way!

Husband has his own business and it took a few years for financial confidence to grow.

Also have a GOOD look at what you can get for your money: often you can get much more spacious properties (with bigger rooms and better storage) and on bigger plots and with much more longer term "potential" than new builds...

We are currently in a new build (we bought off of plan, but 5 years ago) and it is a very nice one, but it doesn't have any potential to exploit and we are just "out-growing it" (a lot sooner than I thought we would when we bought it!). We have exchanged contracts to sell it today.

So have a goooood look around to see what your money will get you

QT

Thanks again QT. The new business I am really just an investor, I still have my full time job, and fingers crossed we dont think would have a big problem for the business to be successful...

Personally, I dont really like old houses and always lived in new properties when lived with parents... We want to buy a house as a home not for investment and would live for at least 3-5 years, and if we do move in the future would be abroad and still would keep the house. any suggestions in this situation?