Future Value Of New Build

Owain_Moneysaver

I agree with ILW, new builds always carry a premium. A lot depends on the individual development of course, but in many cases the only advantage of new-build is that it is new and shiny. In five or ten years time it won't be new and shiny any more, the NHBC guarantee will have expired, and there will be a newer and shinier development round the corner.

I would suggest that new build (or indeed any property) will hold its value best if it's in a good area with no further building land available, popular with families and with good schools, with good room and plot sizes.

If it's flats on part of a large regeneration scheme then there are plenty of examples of there being local oversupply in the market with buildings being half-empty with buy-to-lets rented to anyone who can pay the rent for a few months.

googler

ACX wrote: »

On the subject of the builder, the company is explore living, who are owned by Lang O'Rourke. Does anyone know anything about their reputation? From what I can gather Lang O'Rourke are a very successful building company ...........

Past reputation and past performance means diddly squat at the moment.

I/we've seen a whole raft of 'prestige' housebuilders, who had great reputations, go down the pan in the last few years.

Hippychick

Remember if you borrow 25% from the developer when you have to pay it back after whatever timeframe they set you will have to pay 25% back so it works in your favour if houseprices have dropped but not if they rise sharply.

I would be seriously checking the terms and conditions to see what valuations the developer will accept before agreeing to any such loan.