Buying New Build!

master_ian

Happy New Year to all!

Just wanted to find out if there's anyone here who has purchased a new build property recently and got a discount...Who's a good Housebuilder to approach?? My sister and I are planning to buy a 2 bedroom flat/apartment new build in East London ---however can only afford 180K mortgage. We have a further 5K for stamp duty, fees, etc.

Our deposit is 20K, and we'll be ready to start viewing in March, at the end of the tax year (traditionally a time, together with end of Dec, when housebuilders off-load properties for a 10-20% discount. I've seen a few new builds in zone 3 (Woolwich Arsenal) market priced at 210K - with the housebuilders giving 15% discount = just over £178K -- within our budget. I'm mainly looking at redevelopment areas, ie Silvertown Queys, Greenwich Peninsula, and the lower Lea valley...so that our investment will generate capital growth as well as a place to live.

Am not too keen on ex-council flats- as I've heard horror stories about them and a new build will be easier to rent and maintain if we decide to move on in a couple of years. Question is: Can we get one at that price - take into account I'm going to be approaching housebuilders for the discounts!!

Many thanks!

kelloggs36

IMO you must be totally mad to want to pay that much for a 2 bed flat!! If you want value for money, look outside of London. In the Medway towns you can buy a 3 bed house with a large garden for what you can afford which to me seems much more worth it. It depends on how much you want to stay in London? The transport from Medway to London is excellent with Chatham to Victoria in less than an hour - even though this is quite expensive, it more than offsets any extra you pay in housing costs.

btloptingout

Beware, those "discounts" aren't really discounts!

They are a marketing/sales way of structuring the deal to appeal to consumers.

Typically they've been used to structure the deal as a "no-money-down" for investors/FTB's but the banks are getting wise to this and insisting on true valuations.

When it comes to re-selling your property you can expect to re-sell from the discounted price paid not the headline price.

All the re-sells in a new-build development near me have proved that the "discount" provided by developer is rarely (if ever) a realisable gain.

Crown Heights
84 Alencon Link,
RG21 7TY
26-Sep-2003 £190,995
28-Jun-2005 £165,000

Crown Heights
139 Alencon Link,
RG21 7TW
28-Nov-2003 £213,995
29-Jun-2005 £183,000

Crown Heights
27 Alencon Link,
RG21 7TN
20-Apr-2004 £199,995
22-Dec-2005 £160,000

Crown Heights
123 Alencon Link,
RG21 7TW
31-Oct-2003 £211,995
22-Feb-2006 £168,000

Crown Heights
47 Alencon Link,
RG21 7TN
20-Apr-2004 £190,000
09-May-2006 £160,000

324 Winterthur Way,
RG21 7UQ
08-Dec-2004 £230,000
16-Jun-2006 £157,000

411 Winterthur Way,
RG21 7UN
30-Apr-2004 £170,953
13-Jan-2006 £137,500

Personaly I wouldn't touch new-build flats particuarly outside of London.

Of course London is a different market all of its own and flats are more a fact of life.

MortgageMamma

There are lots of ways to obtain affordable housing without buying a new build and counting on a builder "discount" (basically an overvalued property in first place)

Have a look at the open market homebuy scheme on this link, it might give you food for thought http://www.housingcorp.gov.uk/server/show/nav.2129

POORBUTHONEST

Just my own experience, I would stay well clear of any dealings with Persimmon Homes: Never had such poor / disgusting (lack of) service with a Builder in all my life.
Once they've got your money you won't see them for dust.............

PBH

MortgageMamma

Also have you heard of those affordable housing schemes springing up all over london? You buy a property at 70% of market value and then sell at 70% of market value. There are conditions befroe you can become eligible that you live or work in the borough where it is and have done for so long, and that you qualifiy in the financial sense - There is a company called St Georges Developments now selling a development such as this on the banks of the thames, near Hammersmith I think - I dealt with one for a client a few months back - it might be worthwhile looking into that?

master_ian

Thanks for reading my post and the advice everyone...Any ideas on the above budget with the option of buying Off-Plan?

My sister and I live/work in London so we would prefer a London residence - it does'nt have to be central, just an up-and-coming area. And also we're looking at this as a long-term investment as well- we most probably won't be staying for over 2 - 3 years at the new flat, and as London is a guaranteed rental market for flats....we could rent it out when we leave and allow for capital growth as well. So it is a long-term plan for the flat.

Will look into that link, Mortgagemama (nice name!) ...cheers for that. We'll also be talking with Estate Agents - to see if there are some good 2nd hand properties out there. My research has told me that nowadays - 2nd hand property is only about 10 - 15% CHEAPER than New builds anyway (unlike in the past when it was much more)...And a quality builders' brand new property (with these 'discounts') is a much more attractive option with lower maintenace costs!!!

Any thoughts for us green first time buyers?