Buying new build

jimpix12

tam2oo5 wrote: »

I will try and see what can be done, because im going for shared equity scheme they are reluctant to offer any more discount. How much is the house likely to drop in value after the "New home" appeal is taken once this is second hand.

The only way you can calculate a rough figure for that, is to look at similar sold prices for recent but not brand new builds in your area.

Then factor in that house prices are probably going down further from here - maybe by 0.1% maybe by 25% who knows?

tam2oo5

Hi thanks for your reply, this thread has raised some major concerns. Some worth giving more thought - im thinking that i may just wait and raise more deposit and purchase second hand property and hopefully have some left over cash to customize the place to suit. Im going to start another thread a pulling out ..

brit1234

tam2oo5 wrote: »

Hi thanks for your reply, this thread has raised some major concerns. Some worth giving more thought - im thinking that i may just wait and raise more deposit and purchase second hand property and hopefully have some left over cash to customize the place to suit. Im going to start another thread a pulling out ..

Wise thinking, you really don't want to get caught up with a shared equity scam property. :beer:

With your new plan you avoid negative equity and get a better quality home with bigger dimensions.

good luck

Mortgagenewbie

Only scanned through so apologies if i have repeated anything above but my friend brought a new build about 3 years ago. It was a first wave of development and they are still building now nearby her house. She is in massive negative equity and pretty much trapped as similar properties being built near her are being sold as new for less than what she paid 3 years ago, leaving her with the problem that why would anyone want her second hand property when there is a cheaper shiny new one around the corner?

When she brought she was single and a 1-bed flat was perfect for her, but now shes married and desperate to start a family but theres literally no room for a cot! As long as you are buying a place you would be happy in for a good few years to come then a new build is fine, and so many people are in negative equity so maybe im talking rubbish, but just thought id mention my friends experience of new builds!

tam2oo5

Thanks for your reply, can you guys shed any light on the consequences about pulling out?, i started another thread.

Thanks

poppy10_2

tam2oo5 wrote: »

Thanks for your reply, can you guys shed any light on the consequences about pulling out?

Better to pull out and lose a few hundred than go through with it and end up trapped in a house with thousands of pounds of negative equity.

rodenal

spunko2010 wrote: »

You can try mouseprice.com for recent sold prices, or Zoopla.co.uk.

5% off is not a bad saving, on a new build personally I would push for more.

I would echo this - it will obviously depend on how well the properties have been selling and at what price, but having been involved in the financials of some "premium" new builds I can tell you there is a massive amount of profit on these - I would hazard a wild guess at 40% on a standard £130k property (rising to frankly silly percentages when looking at bigger newbuilds) which should mean there is an "easy" 10-15% discount available but again it depends on how well they have been selling.

pioneer22

Are you buying a home or an investment? Generally houses will do whatever the markets do ignore brit it isnt a scam but you need to know what you are getting yourself into. Where are you located?

hazyjo

Hadn't realised it was shared equity... you might want to search the system to read various comments on here. Tonnes about it. Not much of it favourable.

Jx