Buying New / Conflicting Information

J3OEF

Hi Guys,

First time poster and potential first time buyer

Like many people, i do not have a 5% deposit, although me and my wife are saving towards one at a rate of £600 PM. Currently have £2000 and estimated September for a time of having the required amount.

We went looking around on Monday at new developments, and specifically stopped at one where the Developer was Persimmon. The property was a 2 bed Coach House which seemed to suit our needs, it was freehold and detached and was ideal for a first home in our opinion. The only question was the price as it was £120,995.

All other properties within our area are more then we can afford or have been offered in terms of a mortgage amount. We dont fancy living in an apartment block hence why a coach house suited us better.

We spoke to the sales agent at Persimmon who after telling we were saving a deposit turned around and said, how about i sort a deposit for you (5%) would that be easier for you as you can use your saved money to buy things for the house etc etc.

IDEAL we thought, she told us to go away and think about it and come back if interested with a reservation fee. So we have been away to think about it and i rang a couple of IFA's and told them the scenario. First off they said even if the developer is putting up 5% we still need to find 5% ourselves, question is why is the developer claiming this is not the case? Are they fixing something?

Secondly, how far can you push a developer in terms of getting stuff out of them, as she said "I should be able to sort carpets out for you". Other then that it comes with a cooker/hob but no integrated kitchen appliances.

Can anyone offer any advice as remember i am a first time buyer so its all new to me and confusing given one person said something and another said different.

Thanks

Joe

G_M

Coach house? Define. It may not be freehold (don't take that on trust from the developer!)

Is it a 'flat' above garages? Or is it over an access road? It may turn out to be leasehold.

You will still need a deposit - the developer is (I think) offering to reduce the price, but possibly showing the higher price for your mortgage lender (which of course would be mortgage fraud). So you need to fully understand what it is they are offering.
As for negotiating carpets, cookers etc, yes, you can negotiate all these things.

But remember, a) they will be cheap poor quality ones and b) the cost to the developer is minimal. They buy 100 cookers at a cut-price rate. 'Giving' you one, costs them peanuts, but makes you feel like you are getting a good deal. Far better to get the price down and buy your own, chosen quality cooker.

Or get a washing machine, dishwasher, power shower, curtains, etc etc etc AS WELL.

And finally, remember, the value of your brand new home will drop as soon as you buy it. Just like driving a brand new car off a garage forecourt. It is immediately '2nd hand'.

DVardysShadow

Do not buy brand new with less than 10% deposit and certainly not on a deal where the builder arranges things so you have even less than 5% equity. This is instant negative equity.

brit1234

I think you will need to save a lot longer. Your present £2000 won't even cover the costs such solicitors and mortgage fees.

Also don't believe a word the developer says they speak with a forked tongue.

Just get saving a couple of years and you will be fine.

J3OEF

G_M wrote: »

Coach house? Define. It may not be freehold (don't take that on trust from the developer!)

Is it a 'flat' above garages? Or is it over an access road? It may turn out to be leasehold.

You will still need a deposit - the developer is (I think) offering to reduce the price, but possibly showing the higher price for your mortgage lender (which of course would be mortgage fraud). So you need to fully understand what it is they are offering.
As for negotiating carpets, cookers etc, yes, you can negotiate all these things.

But remember, a) they will be cheap poor quality ones and b) the cost to the developer is minimal. They buy 100 cookers at a cut-price rate. 'Giving' you one, costs them peanuts, but makes you feel like you are getting a good deal. Far better to get the price down and buy your own, chosen quality cooker.

Or get a washing machine, dishwasher, power shower, curtains, etc etc etc AS WELL.

And finally, remember, the value of your brand new home will drop as soon as you buy it. Just like driving a brand new car off a garage forecourt. It is immediately '2nd hand'.

The developer said it was freehold but the other 2 garages owned by 2 other home owners were leasehold.... Its above 3 garages not a pass through to a car port.

Going off what the developer said, we didn't need a deposit as they are paying it, how they are doing this i don't know as everyone i have spoke to from financial advisor's to ppl on here and other forums seem to say the same, i still need some form of deposit. So its rather confusing.

I know it will drop as soon as its brought, but i would try to negotiate a price reduction and be firm but make out i am keen to walk away also. But when i compare the new build to others in the area (older houses) i seem to get a poor deal.

brit1234 wrote: »

I think you will need to save a lot longer. Your present £2000 won't even cover the costs such solicitors and mortgage fees.

Also don't believe a word the developer says they speak with a forked tongue.

Just get saving a couple of years and you will be fine.

If only it was that ideal, i have a wife of 7 months who is demanding we move by this year as living with the parents is not ideal if u get my drift.

Do you have a rough idea on all associated fees apart from deposit? The finiancial advisor i spoke to said about £2,000 but you seem to think different?

I am aware of developers talking !!!! thats why i am opened minded about them and not rushing into anything. If it was upto the wife, we would of brought it and moved in

DVardysShadow

J3OEF wrote: »

.... If only it was that ideal, i have a wife of 7 months who is demanding we move by this year as living with the parents is not ideal if u get my drift.

Do you have a rough idea on all associated fees apart from deposit? The finiancial advisor i spoke to said about £2,000 but you seem to think different?

I am aware of developers talking !!!! thats why i am opened minded about them and not rushing into anything. If it was upto the wife, we would of brought it and moved in

2 of those things people say

• out of the frying pan and into the fire
• act in haste repent at leisure

kidcat

We spent close to £5000 on fees etc when we bought our house last year. Solicitors fees, mortgage fees, survey fees, removals and the list goes on. factor in the extras for a new house such as curtain poles, curtains, light fittings and it can really sky rocket.

tsunami70

Any chance you could look at renting instead? It took us 3 years to save up a deposit while living in rental accommodation but I wouldn't trade that for a year at home (under my mother's watchful eye!) or for a dodgy new build scheme.