Persimmon Homes

ILW

I cannot understand why anybody buys off plan. Why not wait until the place is actually built. What am I missing?

QTPie

ILW wrote: »

I cannot understand why anybody buys off plan. Why not wait until the place is actually built. What am I missing?

We did - we bought VERY early on in a development: we got one of THE best plots and got to choose all of the fixtures and fittings. In a stable/rising market, then buying off plan (with a reputable builder) is not a problem. I wouldn't do it now though (in the current market).

To the OP - http://forums.moneysavingexpert.com/showthread.html?t=1572717 . This has just been posted today and illustrates some of the issues quite well (although the buyer in that thread seems to have been purchasing for an investment rather than for a home - it still highlights the extreme uncertainty of getting what you reserve). There are LOTS of threads like this at the moment: I certainly see several every week.

QT

MORPH3US

Feline_friendly wrote: »

WSHARP.....it does seem alot of people on here are against neẁ biulds and qiute nastily tell you so...even calling you names because you have reserved a plot.....

wsharp wrote: »

Can you not read my post???WE ARE ONLY LOOKING... is this board not suppose for people to ask questions?

I don't need your sarcasm!

Thanks

Sorry guys, but unless I missed something (I only skimmed the thread) I can see nothing but great advice on here.

You are of course welcome to ignore all or some of it, but on the whole this place gives great advice.... just sometimes people take things the wrong way (its easy to do as you can't see someone's expression or hear their tone when they type).

QTPie

MORPH3US wrote: »

Sorry guys, but unless I missed something (I only skimmed the thread) I can see nothing but great advice on here.

You are of course welcome to ignore all or some of it, but on the whole this place gives great advice.... just sometimes people take things the wrong way (its easy to do as you can't see someone's expression or hear their tone when they type).

Completely agree. There are some idiots on this forum, but you find them on any forum and in any and every walk of life, but the majority of posters here are just fab and all they want to do is help

There is nothing wrong with many new builds (although some are a lot better than others). There will always be both advantages and disadvantages of new builds over older houses. It will always be "horses for courses".

There are probably good deals to be had on some new builds out there... just a LOT of people think that "new build off plan" is just too risky at the moment. But, at the end of the day, people have to make their own decisions. We just all want to steer people into the best decision...

QT

MORPH3US

OP make sure you check out this thread...

http://forums.moneysavingexpert.com/showthread.html?t=1560133

Slightly different situation but has its similarities too...

There must be loads more threads all saying the same thing.

p00hsticks

wsharp wrote: »

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

As I don't think anyone has yet answered this explicitly....

If you exchange contracts on an uncompleted new-build now, you are comitting yourselves to buying it at the price agreed now - say £x. However, the completion date (if fixed) is likely to be a long time ahead (and for new builds I get the impression that in many cases the developers put in clauses that allow them to put back the date even further without penalty).

Therefore it may be eighteen months later before you complete, by which time the property value may have gone down considerably to £y - but you still have to pay the price agreed (£x).

You are not going to be able to agree a mortgage now that will still be valid in eighteen months time - most offers are only valid for a limited time. So you will just have to hope that you can get a mortgage nearer the time.

But when that time comes, you will find that no mortgate company is prepared to loan you more than the £y that the house is worth at the time (at most).

That means that unless you can come up with the difference (£x-£y), you will not be able to complete the purchase as agreed and could end up being sued by the builders for breaching the contract.

MORPH3US

Well said p00hsticks...

To illustrate that with numbers...

If you agree to buy that house now for £100,000.... (and the max mortgage you can get on that is 90% or £90,000)

In 12 months it might only be worth £90,000 but you will still be required to pay £100,000 for it....

However if the mortgage company will still only lend you 90% (of what the house is actually worth NOT what you are paying) then you'll now only be able to get a mortgage for £81,000

Therefore the amount you are paying £100,000 minus the amount you can get on a mortgage £81,000 means you now need to pay £19,000

Whereas if the house price hadn't falledn then you would *only* have been paying £10,000

wsharp

Thanks to all the guys/girls who been very helpful and patient with me. After I read all your posts(you have explained really well)made me to think more careful now, and I will keep you posted with our process to our first new home!:beer:

wsharp

here we go... this is the latest we have heard from Persimmon... for the house we like they have released the plot and priced for 234,950, and 'kindly' gave us 10k discount + 5% towards the deposit...sounds good? I dont think so...

wsharp

Richard_Webster wrote: »

If they will sell a 3 bed for £170K then the question is whether 5-25 year old 3 beds in the area are worth say £165K now. If they aren't then the new build is still overpriced.

The point about buying off plan is that people who did that a year or so ago are finding that because mortgage offers do not last that long they have to apply again for a mortgage when the property is nearing completion. The valuer then values it lower and the lender is therefore only prepared to pay a lower figure, but the buyer is already legally bound to pay a higher figure.

Thanks Richard. for a 3 beds detached in our area avarage around 180k, we've viewed 2 houses about 5 years old one is 185k (it was sold the day after we viewed), the other one is 199,950 and the 3rd one about 12 years old is 180k.

We have 100k to put down as a deposit, based on my salary and one of our business income we can borrow about 110k mortgage, so we still have the hubby's lecturing income to fall on. Yesterday Persimmon told us for a 4 beds they are asking for 234,950 and they will give us a discount of 10k + they will pay 5% of the deposit. From everybody's posts here and read from newspaper etc, at this falling market, I would really like a 20% off that asking price, any suggestions would be much appreciated.

Thanks:D