How much is the New build premium?

IronWolf

Hi all

I am looking to buy a flat in London, and am very interested in the shared ownership schemes as the rent charged is very low and the cost per month is so far below what it costs to buy the same size flats outright. With mine and my gf's finances we would qualify for them as we are FTBs with moderate but not high salaries.

There are occasionally some re-sales but they are few and far between and tend to go within days. So I am left with the larger number of new builds available and just wondering how much will I lose in % terms and whether or not it is worth waiting around for months possibly years for the right re-sale to come along.

Cornucopia

Which part of London? Price range? Size of property?


Edit: Looking at this sort of thing seems to suggest no premium. 100% value would be £170k, which doesn't look unreasonable for Harringay.

http://www.rightmove.co.uk/property-for-sale/property-27182691.html

kingstreet

You need to take the price of the newbuild and subtract the cost of an equivalent re-sale to calculate the newbuild premium.

It's different from property to property and area to area.

IronWolf

Cornucopia wrote: »

Which part of London? Price range?

Zone 1, just south of the river so Southwark/London Bridge/Bermondsey. Looking for something 250-400k (new), 2 bed flat.

Cornucopia

The only area inside Zone 1 that would work would be Elephant & Castle - not that glamourous, and I'm not aware of a great deal of building there at the moment.

I'd suggest looking in Bermondsey - just over the border into Zone 2. There's lots being built there at the moment. For example: http://www.rightmove.co.uk/new-homes-for-sale/property-42335264.html

As long as you are within walking distance of both Bermondsey Tube station and the Restaurants & Bars at Shad Thames, I think you have a great location.

At £341k full value, that compares quite well to Shad Thames and the Bermondsey riverside. Other properties in the surrounding area at the same price suggest little or no premium for new-build.

harrys_dad

Come and live "oop north". Near me you could have a four bed four reception with wonderful sea views for prices like that!

Cornucopia

I should hope so, too.

The location we are discussing is a short walk from the Tower of London, with The City just beyond.

This is actually pretty good value compared with places like Chelsea & Fulham.

IronWolf

Cornucopia wrote: »

The only area inside Zone 1 that would work would be Elephant & Castle - not that glamourous, and I'm not aware of a great deal of building there at the moment.

I'd suggest looking in Bermondsey - just over the border into Zone 2. There's lots being built there at the moment. For example: http://www.rightmove.co.uk/new-homes-for-sale/property-42335264.html

As long as you are within walking distance of both Bermondsey Tube station and the Restaurants & Bars at Shad Thames, I think you have a great location.

At £341k full value, that compares quite well to Shad Thames and the Bermondsey riverside. Other properties in the surrounding area at the same price suggest little or no premium for new-build.

Thanks, forgot that Bermondsey was zone 2

There is definitely a huge amount of building going on there which could be positive for prices in the area if they continue replacing all the old council buildings.