new build houses - a good investment???

Massive_2

Indeed - property can be a very sound investment. But don't assume it's easy money - profit is by no means guaranteed.

There is money to be made whatever route you take (BtL, BMV, BtS, even off plan and new build) but your prime consideration must be the strength of the market. Don't just look for an apparent bargain - ensure all influences are pushing in the right direction before you invest.

Regards

Generali

If buying off plan was a sure-fire or even a likely way to make money, developers wouldn't do it. Given the costs of buying and selling, you're very unlikely to make money.

Massive_2

Gingernut,

Perhaps you'd care to share a little more detail with us regarding your plans? I guess if you're considering selling up and re-investing you've given the matter some thought and research.

What location are you looking at for investment? This can make all the difference to the wisdom of your choice.

space_rider

I wouldn`t do it but it depends on the location. Make sure it is in an area where property prices are rising rather than decreasing.

gingernutbizkit

thanks again everyone.

these are the details of our situation......

we bought our house 3 years ago for £140K. since then we have done a loft conversion, new kitchen, new bathroom, extension, landscaped garden and are just finishing redecorating the bedrooms and lounge. it has now been valued at £230K and we have approx £105K equity in the house.

We want to sell and move to a cheaper area more local to work. We have two options....

1 - south redditch. House prices here are cheap and still rising. we could get a 3 bed detached for around £170K

2 - Studley. A small village between redditch and stratford upon avon. We could get a 3 bed semi for around £185K

We're starting to think that studley is the best bet. it has poor transport link but has a warwickshire postcode and tesco have just moved into area. It also has new houses being developed which we think is a good sign.

Either way we could have a lower mortgage and still pay at the same amount we do now which would mean us being mortgage/debt free in 7 years. then we could move on from there.

what do you think?

Generali

Sounds good to me. I wouldn't go for a new build as an investment but as a home it's a different matter.

gingernutbizkit

i think you're probably right generali.

better start looking hard - want to get the house on the market before 1st june

prudryden

Put your funds into a real estate mutual fund. Sit back, collect the dividends and let someone else manage the portfolio. In addition, you have liquidity at the push of a button and very little cost.

ollyshaw

I would have a read of this guys experience.

http://iamfacingforeclosure.com/

Olly

Generali

I look forward to reading iamfacingreposession.co.uk