Strong Position?

happy_2008

Hey All,
We are interested in a new build as a FTB and we have the following in order:

Property Sale Price - £143 - 5% = £135k
Deposit - £30k
MIP - £90k
Chain - Chain Free (FTB)

As we are interested in a new build would this put us in a stronger position then others? Also the property we are interested in is due for completion in April 2011. After doing alot of research on this website regarding MIP and buying off plan we would be open to alot of risks with the mortgage in principal expiring etc.

Now am i right in saying that as we are bearing alot of risks buying off plan we should negogiate for a lower price e.g. off £120k?

Suggestions would be welcomed

CloudCuckooLand

Let the developer bear the risk of prices falling until next year, then go into at £120k anyway...

poolboy

I personally would go for an older - 70s - type flat. They are usually bigger in size, better built so have better noise insulation, concrete floors, garage instead of parking, mature gardens. OK, a few things to do & no frills like a new build.

I am a v fussy buyer & have yet to see a new build better than an older one for the sam eprice point.

In fact the only empty flats (ie unlet) in my area are those new builds where the LL is trying to cover his purchase costs, it's too expensive.

Hope it helps, just my view.

happy_2008

If i place a Reservation fee down does this mean that the property would be reserved for me until nearer the completion date and we process this etc?

mcc100

If you were my son or daughter I would be strongly advising you not to buy a new build flat.

In the current climate they are the worst type of property for a FTB to buy.

happy_2008

mcc100 wrote: »

If you were my son or daughter I would be strongly advising you not to buy a new build flat.

In the current climate they are the worst type of property for a FTB to buy.

Why would you say that?

Jenniefour

mcc100 wrote: »

If you were my son or daughter I would be strongly advising you not to buy a new build flat.

In the current climate they are the worst type of property for a FTB to buy.

Agree with above - if OP is indeed buying a flat, which isn't clear. Suggest you do some research in your area and see what else you can get for your money - older style properties nearly always offer more space for your money and a bit more character. Helpful to not get caught up with all the sparkly new bits and this is what you will be paying the extra for - premium on new builds.

If you want to go ahead then try and get price down more - we are in a falling market and I imagine some builders will be very happy to get people tied in, albeit at a lower agreed price, for a sale - they might be having to discount a lot more very soon if they have any unsold units.

AndersLimpar_2

If you are outside of London then i would also avoid a new build flat. Loads of empty new builds around to snap up that are already built.

For that money you could also get a nice house in most regions of the country.


All the above assumes your not in London!

happy_2008

Tbh at the moment the flats i am looking at are based in Purfleet. Are there any other flats with good transport links into London at a decent price e.g. £130k?

AndersLimpar_2

a quick search on rightmove.com will give you the low down!

happy_2008

Just to add to this we are applying for a join mortgage:

Combined Income - £52k

So in reality we would be borrowing approximately 2 times our salary. Say for example we agreed on a new build at £128k and we placed down £30k deposit which leaves us with £98k mortgage, would we really struggle to get this mortgage? Also say if the valuation from the bank was £120k how would this affect us in this scenario?

I know its alot of questions but im really trying to understand the concept.

Cheers