Strong Position?

AndersLimpar_2

Your amount of deposit means the numbers do add up and you should get a good rate. Thats assuming you both have good credit scores and no other debts.

The valuation could be a stumbling block but then you dont want to be paying over the odds so its no bad thing if it comes out lower (probably wont), will give you the best ammo possible to get a reduction from the builders.

Sparky29

New builds generally lose value to begin with as you are paying a premium for something that is obviously new.
You could get a similar property a couple of years old for thousands less. As the others have said there are plenty of new/ newish properties around. Buying off plan in a dodgy market is a big big risk, especially with many builders going bust. I don't know how you stand with regards to losing your money but I would be wary of losing my money.

happy_2008

Yes the new builds are 2 bedroom 2 bathroom with allocated parking and balcony. Think i would struggle to find the same deal anywhere else to be honest, thinking of offering the sales lady £120k for the property due to the level of risk involved and the fact that we are in a strong position. However what confuses me is the fact that buying off property has alot of risks, so why does the builders not accept lower prices to offset this risk.

Riq

happy_2008 wrote: »

Yes the new builds are 2 bedroom 2 bathroom with allocated parking and balcony. Think i would struggle to find the same deal anywhere else to be honest, thinking of offering the sales lady £120k for the property due to the level of risk involved and the fact that we are in a strong position. However what confuses me is the fact that buying off property has alot of risks, so why does the builders not accept lower prices to offset this risk.

because you are very close to offering them £135k.

Have others sold?

happy_2008

I definately wont be offering them £135k for sure! I have researched on mouse price which suggests that most new builds there are sold for £128k.

According to the sales lady, there are already 2/3 slots off plan reserved but i believe in the golden rule of never trust a sales person :j

happy_2008

Think we are at a slightly lower risk due to the size of the deposit we have (20%) as the asking price is around £130k with 30k deposit meaning our mortgage would only be £100k. The value of the flat would definately be over 100K

mark5

I bought a new build house in 2006 for £216,000 but looking at nethouseprices etc I would say the true value of my house at the time was between 190-200,000 going on the sold prices of 2nd hand houses in the same area.

On the plus side everything was new and the only thing I had to concentrate on during the first few years was the garden.

I would buy a new build again but you have to accept its a bit like a new car, as soon as you sign for it and get the keys its lost some value!

happy_2008

I agree with you but its nice to have everything new and not worry about things breaking or at least it should be under warranty etc. So what other websites are there like mouse price etc?

MobileSaver

happy_2008 wrote: »

I agree with you but its nice to have everything new and not worry about things breaking or at least it should be under warranty etc.

It's swings and roundabouts, you're less likely to have appliance problems but more likely to have building problems with a new build. Although as you rightly point out, you should have warranties when things do go wrong.

It is nice to have everything new but as confirmed by mark5 you are paying a hefty 10% premium for that nicety. (In fact, as most of the property is mortgaged, when interest is taken into account you're paying more like a 16% premium.) If your circumstances change 9 months after moving in and you need to sell then the property will be worth at least £10k less than you paid.

The biggest risk of course is that you're agreeing a price now for something that is not yet built and just hoping it will be worth at least that much next April (or later if completion slips.) If you go ahead the best advice anyone can give is to make sure you hire a solicitor experienced in new build purchases.

happy_2008

Any particular solicitors would you guys advise specialising in this area?