Can new homes be overpriced?

KentAde

Hi Folks,

Myself and my wife are looking at taking out a 97% mortgage on a brand new property in Greenhithe in Kent (close to station and 5mins from Bluewater shopping centre). The property is a 2-bed for £230K. The floor plan is below(Yew).

Should all new homes be market price, i.e. they are not overpriced?, as wouldn't want to fall into negative equity in few years. I've checked 'house price' websites and other new-ish homes seem to be around that price for the specification, but just wondered if there was some legal requirement about new house prices?

Cheers.

Ade.

http://www.waterstonepark.co.uk/assets/pdf/houses/Maple_Yew_A3v3.pdf

chivers1977

It is because Ebbsfleet is being built that the prices are so high down there. I am moving there for work but am having to move to chatham as is just too expensive to get anything big enough. Have you considered moving a bit further out as when the london-ebbsfleet bit has been finished the travel to london will be much quicker from everywhere down there......

withabix

New houses are ALWAYS overpriced!

Housebuilders try to drive the market upwards all the time, to increase their massive profits.

Except in a rising market, you will invariably have trouble re-selling in the short term at anything but a loss, unless you sell before the development has finished, in which case you might be able to get ALMOST as much as the builder is still selling the houses for (assuming they have risen in asking price), although builders do still offer what appear on the surface to be 'deals', giving you cheap carpets or part-exchange offers.

Strewth that's a small house. My 3 bed house is small and the lounge is larger than that living room

PS I would want a large 4 bed detached for £230k, but then I am a little further north!

lynzpower

If new houses were NOT overpriced, then I wonder how the developer can chuck in all sorts like carpets, sols fees, stamp duty, snazzy extra fittings, and a host of other sweeteners as we repeatedly see reported here.

alared

Have to agree with Iainkirk

Of course new houses are overpriced,the builders are out to rip off as much as they can from each buyer.
Forget all about free carpets,stamp duty paid,5% discount,etc.
These and more are all added on in the first place.

suffolkb

Have a look at the other thread on this - `overpriced new house advice needed` - .Sorry I don`t know how to do a link,but just scroll down.

mi-key

It is pretty widely known that newbuilds are overpriced - this is why a lot of the builders will haggle on the price and knock £5000 or £10,000 off without worrying - plus as others say, all the 'free' things you get arent, they are just added to the selling price as an enticement for FTB's as they dont have to come up with as much money up front.

RHemmings

iainkirk wrote:

New houses are ALWAYS overpriced!

Housebuilders try to drive the market upwards all the time, to increase their massive profits.

I have to agree with this. I was going to post a challenge for someone to find some new houses that weren't overpriced, but I see the point has been covered well.

Certain "new build" housing estates that I'm aware of ask prices which are well above the prices for similar, "older" houses. The new build estates seem to be poorly located, poorly serviced by transport links, schooling, and the like. In a few years they will have lost their "new" cachet. I cannot see how these houses can hold their value even if the market as a whole remained static.

Sapphire

RHemmings wrote:

I have to agree with this. I was going to post a challenge for someone to find some new houses that weren't overpriced, but I see the point has been covered well.

Certain "new build" housing estates that I'm aware of ask prices which are well above the prices for similar, "older" houses. The new build estates seem to be poorly located, poorly serviced by transport links, schooling, and the like. In a few years they will have lost their "new" cachet. I cannot see how these houses can hold their value even if the market as a whole remained static.

In addition, they are aesthetically revolting (at least to my eyes). . .

Jay1b

That house is absolutely tiny! I live in Sittingbourne (30 mins away), and i just brought a house for £130K with a total area of 22'x16' (352 sq) for lounge/kitchen/diner, compared to your 15'x13' (195 sq).

Also please look into the size of your garage, judging by the picture i doubt you could fit a car in there and open the door. Well unless you weigh about 8 stone.

_s79

I think it looks good.

I myself will most likely go for a new build. Remember, the appeal is that everything is brand new and should be finished to a decent standard and as there is no mess to clear or chain, its easier to move in.

I am looking at prebuild to get a better deal