New Build BTL Incentives

distilled

Presumably you've done your homework on rental values etc. From a builder's point of view, the same incentives are available to all purchasers. Personally, I'll always try to make the deal attractive to investment buyers, even if that means giving a little more discount, reason being, hope of repeat business/referrals. Also, if you've already bought new from the developer, they should recognise your loyalty in some way.

Good luck

plane_boy2000

Thanks for all the advice. There are are a few other investment properties around here, but not many, and the ones that are here are usually let within a week to 10 days. I wasnt particularly looking for the developer to lie / offer gifted deposits etc, just wondered if I should expect a better deal for being in a good position i.e. no chain, and looking for a swift completion. Thanks

terrierlady

as my mate distilled has stated we try to offer investers a discount for the same reason, they usally buy at the start or end of a development when the incentives are usally higher, upto 15% for the last few homes etc.
To reserve everyone must be in a good postion, ie proceedable which is able to exchange contracts in 28 working days, for higher incentives we would look for a
quicker exchange and completion.
Does the chosen development have a support agent? they will tell you how many homes are available to rent both on the development and locally.
FTByrs do often need a gifted deposit scheme and sometimes even legal fees paid.the harder the market the more we will deal.
we do have customers who buy the first home and trade up with us as the family grows and even downsize when the family leave, we do value ALL our customers, investers, FTByrs, people who part exchange etc
Good luck with your purchase.

Tassotti

I have never seen a new build development where rental figures stack up on an 85% BTL mortgage. At the 15% discount, some just about do, but as mentioned before, hundreds of properties become available to let at the same time and a price war ensues.

Many people have lost lots of money doing this recently. They are promised the world, but in reality most of these deals just don't work as BTLs.

terrierlady

Who promises them the world?
choice is given and anybody worth their salt will check figures supplied and even knock on doors to find out the information they require, developers have nothing to hide,I have always tried to be open and honest to you all, as I said we need customers from all walks of life and in some cities rental properties are in short supply especially for students, nurses, police etc.

distilled

Nicely put, terrierlady. I concur entirely

Tassotti

terrierlady wrote:

I said we need customers from all walks of life and in some cities rental properties are in short supply especially for students, nurses, police etc.

You have just mentioned 3 of the lowest income earners around. With the costs of new builds so astronomically high (even with discounts), the rents have to also be high for any deal to stack up. Cannot really see the groups of people affording these types of properties.

So unless the owner is willing to make a loss on the rent (which happens frequently) then it is only high paid executives who could afford the rent.

Summary, the owner ends up with a property, which is overpriced, making loss on the mortgage payments and in a whole world of trouble

Doozergirl

Mortgage lenders think that new build apartments are too expensive. I was reading in the Sunday Times Home section yesterday that mortgage lenders are asking RICS surveyors to do more homework when approving loans on new build apartments, making sure they compare selling prices for the type of property as a whole, not just the development.

I feel sorry for anyone who thinks that one of 100s or even 1000s of identikit BTL apartments that cost the same as a 3 bed semi in a good part of town is a good investment. I don't expect the developer to have a conscience over it, they're in the business of making money. It's not right, but when people are prepared to pay, they can't be expected to stop supplying.

plane_boy2000

Interesting comments. The development I had in mind i sthe one I have just bought my own home in. For me the attraction is that the rents are slightly higher hat the average for the area, there are few houses to rent here, and the ones that do have rented out within 7 - 10 days, plus one of the developers has a number of 3 bed houses finished, and they are looking to sell quickly so thay can leave the developemnt. The reason they are finished and not sold is due to the fact that they were unacsessible for some time, and (i dont know why) not released until finished.

Think I might sound them out

Tassotti

Hi Plane boy.

Not sure where you're coming from here.

If you are an owner and live in the property, and got a good deal, fair play.

If you are an investor, I hope your income can support the losses you make in the rental of these properties.

However, I stand to be corrected. If you believe these properties will fetch the rents required, then buy, buy, buy (for the long term)

It is possilble that you can rent out the property you are looking at, but do your own research,. There may be less properties to rent, but in my opinion that because most people can afford to buy. If not, I would imagine the rent NEEDED is way above what the average in for your area.

What area is it?

Easy to check

Tass