New Build Houses At Lowest Ever Level.

Percy1983

Will say I have been keeping an eye on a few new builds near me and yes they do seem a little over priced but very well proportioned in some ways I could see me living happily in many of them.

As for taxing land, not sure if that will get them building or just make increase margins to cover it.

Linton

thescouselander wrote: »

..... Also I hear banks require a minimum of 20% equity when buying a new build which suggests to me they think new builds are at least 10% over valued. I wont be buying.

No: banks are asking for a high deposit because they can and still sell all the mortgages they want to (or have the funds to). Just like housing, mortgage deals are determined by the market. If demand is greater than supply conditions will change to remove the difference.

wotsthat

Percy1983 wrote: »

Will say I have been keeping an eye on a few new builds near me and yes they do seem a little over priced but very well proportioned in some ways I could see me living happily in many of them.

They will be over-priced. The price tag is what they want not what they'll take no matter what they tell you.

If you do some research you'll be surprised at the difference between asking prices and selling prices. It's essential that this research is done before buying because builders are sneaky - they are inflating prices so that buyers feel like they are getting a bargain when they offer what the builder wanted anyway.

Percy1983

wotsthat wrote: »

They will be over-priced. The price tag is what they want not what they'll take no matter what they tell you.

If you do some research you'll be surprised at the difference between asking prices and selling prices. It's essential that this research is done before buying because builders are sneaky - they are inflating prices so that buyers feel like they are getting a bargain when they offer what the builder wanted anyway.

Interesting I will certainly keep that in mind when I am actually looking next year.

Graham_Devon

Percy1983 wrote: »

Will say I have been keeping an eye on a few new builds near me and yes they do seem a little over priced but very well proportioned in some ways I could see me living happily in many of them.

As for taxing land, not sure if that will get them building or just make increase margins to cover it.

Thing is with land taxation is that the builder can try to pass it on to the buyers, but then they just end up with more unsold houses. If they are having problems with unsold houses now, they are not going to rectify it by increasing the cost.

Land taxation I believe is used elsewhere in the EU. It could also serve, if used correctly, to promote building, or regeneration of areas. Unfortunately it would be more likely that any money raised would simply be wasted.

FTBFun

wotsthat wrote: »

Lovely sea view though.

That's what happens when the walls fall down.

FTBFun

Graham_Devon wrote: »

Thing is with land taxation is that the builder can try to pass it on to the buyers, but then they just end up with more unsold houses. If they are having problems with unsold houses now, they are not going to rectify it by increasing the cost.

Land taxation I believe is used elsewhere in the EU. It could also serve, if used correctly, to promote building, or regeneration of areas. Unfortunately it would be more likely that any money raised would simply be wasted.

Do you have an example of this? Its not something I've come across TBH.

I know some countries use "property tax" but that tends to be on residential units rather than just land.

thescouselander

Linton wrote: »

No: banks are asking for a high deposit because they can and still sell all the mortgages they want to (or have the funds to). Just like housing, mortgage deals are determined by the market. If demand is greater than supply conditions will change to remove the difference.

That makes no sense. Mortgage lenders are still doing deals on 10% equity but as soon as you mention new build that is withdrawn and you need 20%. As you say the banks will only sell mortgages they want to so you need to ask why wont they do a 10% equity deal on a new build - the reason must be that there is more risk of negative equity because new builds are over valued.

bilbo51

wotsthat wrote: »

I'm quite rude to salespeople that spout this rubbish.... My wife intervened at this point and started being nice.

Thanks for that - best laugh I've had all day

Going4TheDream

thescouselander wrote: »

That makes no sense. Mortgage lenders are still doing deals on 10% equity but as soon as you mention new build that is withdrawn and you need 20%. As you say the banks will only sell mortgages they want to so you need to ask why wont they do a 10% equity deal on a new build - the reason must be that there is more risk of negative equity because new builds are over valued.

It brings into question the whole phrase 'mortgage rationing'? It seems that the higher deposits and more stringent checks are the banks way of ensuring less negative equity situations and the actual ability to pay of borrowers on any property?