FTB - do I buy a new build?

davilown

Tassotti wrote:

After a quick scan on rightmove, you can buy 3 bed houses for 50K upwards. I agree with doozergirl. Don't purchase a new build, buy a decent 3 bed older property. Make sure you have a full survey done on the place.

Buy a property that you can move into instantly, but has potential. You can then decorate to your own preference. In 5 years when you come to sell, see what the fashios are then, redecorate, fit out the property with the latest furnishings (you can hier these in) abd the sell

Also beware that in 5 years the property may not be worth as much as you thought it was ( differing opinions on this).

Its all very well buying a cheaper house in a nearby area but i'm after a specific area away from all the obvious ie crime, drugs and really appaling schools. The cheaper area has a well known for being mini glasgow.
The area i'm looking at is ideal for commuting from, for both my wife and I. We have looked at the lower value properties, but perhaps i'm a snob and i don't really want to move into that area just because the housing is cheaper.
:beer: monster

davilown

so rather than a new build, would i be better off going for a 4-5 year house in the same area - they are marketed for around 123,000 and i would want to offer a max of 118,000.

:beer: monster

Tassotti

As you are working in the health sector, I think there are grants that you can apply for, which may help you out.

davilown

Tassotti wrote:

As you are working in the health sector, I think there are grants that you can apply for, which may help you out.

Unfortunately neither of us work yet in the local health service - I did look for these incentives but there are so many extra pieces of info that i need!

:beer: monster

tomstickland

£105K for a new build 3 bed is pretty cheap - round here 2 bed flats go for that. If the area is a good one and you can afford it then there is an argument that says pay your money and take the goods. If you want to live in the house rather than seeing it as some sort of short term investment then you can live through a downtown in the market and expect it to rise back up over a 10 year window.

davilown

tomstickland wrote:

£105K for a new build 3 bed is pretty cheap - round here 2 bed flats go for that. If the area is a good one and you can afford it then there is an argument that says pay your money and take the goods. If you want to live in the house rather than seeing it as some sort of short term investment then you can live through a downtown in the market and expect it to rise back up over a 10 year window.

I'm know worried about the area - there are good local schools and an excellent senior/sixth form college just 500 metres away. There is also a primary school about to be built aprox 50 m away from the new build. How much affect will it have on the property price?
Basically it would make my wifes uni trip a lot easier. I'd lose out on free transport to work and have to travel a 50 round trip to work and back although there is a very good chance i'll get milage paid for a t least half of it a 32 p mile.
Oh I don't know second thoughts have already hit and i haven't even put an offer in yet.
Should I just let the wife travel two hours a day and put up with the moaning, but live in a very cheaply rented large house?

HELP!!!!!

cheers

:beer: monster

tomstickland

Well, it's a problem I've had to face too. I've been living at home for a very cheap rent and saving everything I could. I've just bought a 1 bed flat for a reasonably good price and I'm going to move into it. I had second thoughts last night, but in the light of day I know that I've got to get on with it - I can't live at home forever. I've been hoping for a house price crash for years, but it doesn't seem to be happening yet. I can weather a 10-20% drop in prices; I could survive a 50% drop but I'd be a bit annoyed. Then again, I've not stretched myself, so I could also survive a doubling in interest rates.

So I'm just getting on with it.

sarah_elton

davilown wrote:

so rather than a new build, would i be better off going for a 4-5 year house in the same area - they are marketed for around 123,000 and i would want to offer a max of 118,000.

:beer: monster

Bear in mind the stamp duty threshold of £120k - pay nothing on £118k, or £1,250 on £125k.

Anything on the market at just over £120k like that, I doubt the sellers think they'll get anything over the threshold for it. Marketed at that with the aim of selling just under.

eurows

I went to view a new build development this weekend. Bearing in mind that new builds seem to be getting hit the worse now. The sales lady was speaking to a friend and said that the average discount now seems to be 15%.

I personally would need at least that before I bought a new build and would only buy one as a last resort. Before these mad increases it was always taken that you would lose money on a new build. I think that statement is more relevent now.

davilown

sarah_elton wrote:

Bear in mind the stamp duty threshold of £120k - pay nothing on £118k, or £1,250 on £125k.

Anything on the market at just over £120k like that, I doubt the sellers think they'll get anything over the threshold for it. Marketed at that with the aim of selling just under.

The stamp duty does not kick in till 150,000 in this development
:beer: monster