FTB- To buy or not to buy (a new build)?

DM_saver

I've been looking at old and new builds but am really attracted to a house which won't need much work.

I've been cautiously looking at a Persimmon house :undecided. Although I'm eligible for the direct buy scheme I'm keen to avoid a persimmon loan and have been offered the alternative of a gift of 5%.

At £140K with 15% total deposit (10% of my own money), this is affordable but could become uncomfortable factoring in future rate rises, plus I'm after the more advantageous rate of 80% LTV.

Considering this is one of the last finished but unsold houses at the end of a building phase, it's coming to the end of the financial year and it's undoubtedly over priced I'm thinking about asking for a 15% discount plus the 5% gift. Is this completely unrealistic & cheeky? I've read some people have got 20% off.

I'm keenly aware of persimmons shoddy snagtastic houses :shocked: so really would like to hear from anyone whose bought one (positives and negatives) and if acceptance of such an offer is pie in the sky.

Hoping as it's complete I could check for/get any snags rectified as agreement of sale.

Thanks

Marvel1

You may want to read some answers here in this thread:

New Build or Old House
https://forums.moneysavingexpert.com/discussion/3085208

Tr1pp

Ive only ever bought 1 house but have lived in many, both new build and old. I have never lived in a new build house that didnt have loads of issues with the build quality. one property actually had a basic stud wall to divide my property from the neighbours (a nightmare to live with). In fact my friends last two rented houses have been new builds and have been awful, massive cracks constantly appearing, fittings fall apart, and he even had a ceiling collapse.

I would stay very far away from any newbuild if buying my own, infact i did. i would be more weary of 'last built' new builds as they may often rush and cut corners to get the house finished.

I dont want to talk you out of it, its only my opinion but I dont see the value in new builds. having said that im actually having a problem with a small leak in the roof of my new place

If you do go for it deff get them to agree to attend any defects that may accure after purchase and be VERY cheeky with your offer. dont pay any more than the evuivalent older house in the area.

DM_saver

Thanks Cj Davies and Tr1pp. Anyone else with words of wisdom/views?

brit1234

Avoid new builds especially when they offer gift deposits or off plan. Banks don't like gift deposits either.

SuzieSue

I bought a new build 13 years ago and didn't have any structural problems with it. However, I think build quality nowadays is much worse than it used to be.

The NHBC guarantee isn't worth the paper it's written on as they are just a builders' club that doesn't act in the customer's interest.

If I was buying another new build, I would pay to have it thoroughly inspected by someone who specialises in inspecting new builds before putting down a deposit. I would also see if you can get an insurance policy that will protect you if you find something seriously wrong with the property after you have bought it.

Edit: Also ensure you use your own solicitors and not the ones recommended to you by Persimmon.

WelshNic

Nothing wrong with new build, just don't buy from a boxshifter on a huge development, ie Barratt, Wimpey.

There are many regional smaller firms out there that build great quality product, ie Hillreed, Linden/Try.

property.advert

I agree that NHBC is just a scam to fool Joe Public. They are toothless and a members club for the developers. Get anything you can in the way of useful insurance and reports, perhaps paid for by the vendors ?

People knock new homes but here's a list of things I got when I bought a flat a while back (central London)

Washer / Dryer
Dishwasher
Fridge Freezer
Microwave
Double Oven
Halogen hob
Extractor
All rooms wired for telephone, satellite, stereo and fibre optics
Double glazed full height doors / windows to all external facing rooms
New heating / hot water system
Video entry phone
Alarms with sensors etc.
Built in wardrobes
New showers and bathrooms
Heated towel rails

There are obviously a few things I've overlooked but this list, were you to go out and purchase it, would cost you a pretty penny. It also takes time to source, buy, get fitted etc.

I didn't have to all plain sailing though. There were issues with the plumbing, some minor electrics, an issue with one set of doors and some lax finishings such as poor mastic skills around one bath. I had to keep on at the developers and I retained 5% I think until satisfied (though that caused issues over completion - you need a decent lawyer).

There are swings and roundabouts to buying old and new but do consider what you are getting and what you would have to do to a resale property to bring it up to the standard of the new property when making comparisons.

ovoreo

DM_saver wrote: »

it's coming to the end of the financial year

Don't be so sure. I brought a persimmon (charles church) and they run Jan-Dec - I got a significant discount off the asking price because of this. I've had 16 items on my snag list and all have been sorted within 2 months. The team couldn't be more helpful, this was definately stress free buying, I was on site weekly during the build process. Whatever they are advertising the price at it is overpriced so get a deal. As other posters have said 'gifted' deposits are generally not accepted so you've only got your 10%. I think 1 or 2 banks accept gifted deposits.

I used the solicitors recommended too. Only because I'd had dealings with the firm myself for many years so were pretty happy with them, they gave me the best quote plus you need somebody who does know about new builds.

Good luck.

pawlala

I'm a fan of new builds, having lived in two different ones over the last 12 years. Hardly a single problem with anything, apart from having to put up with Magnolia walls for 6 months and a new motherboard in the boiler, free repair under warranty. I would buy a third without hesitation! Just make sure you get a good plot location