London Purchase?

PauliPauli

Just thinking of completeing on a £300,000 new flat build purchase in Bow, London ....Should I buy now or wait few months. seller was very keen to refund stamp duty etc...

pcwilkins

How big a mortgage will you be needing to get? Where are you living at the moment and at what cost? How much savings do you have? How long would you be planning to keep the flat?

New builds are usually overpriced, and recent evidence suggests flat prices are not increasing with the rest of the market.

Unless you can put down a big deposit and are planning to stay there for a long time (10 years+) I would be wary. There is a reason that the seller is very keen!!!

Peter

PointerOO

You're thinking of completing on a flat or making an offer? Or exchanging contracts? You can't really think about completing, by that point it is all signed sealed and nearly delivered.

PauliPauli

were at the offer accepted stagedaughter has graduated in london and was looking at rents off over £200 - £250 per week from sept (flat will be finished then), plus another daughter graduating in three years so in it for long haulAlso I am self employed and was told that interest payment can go against my tax bill so seemed to make sense .. just worried flat might only be worth £200,000 in 12 months time....

pcwilkins

Well it might be, but if you're in it for the long-term, what happens in 12 months is not really important. £

The only think I would worry about is getting a huge mortgage on the property. Borrow £300,000 at 7% over 25 years and you will end up paying back more than double that. So you're effectively agreeing to pay £600k+ for something which at the moment is only worth £300k. And that's assuming interest rates stay relatively low --- make your own mind up about how likely that is.

In any case I would advise against a new build. You are paying for the "newness", just like a new car. The person who comes to buy the flat from you won't be prepared to pay for "newness" cos the flat won't be new!

Heres a 2 bedroom flat in bow for less than half the one you're considering: http://www.rightmove.co.uk/viewdetails-10435628.rsp?pa_n=1&tr_t=buy

Peter

Generali

Bow is something of a crime ridden hell hole. My mate used to live in Bow Quarter (gated community - the old Bryant and May factory) and would have kids setting piles of tyres alight under his window. Nice view across to the concrete works though.

If you're going to be stuck with negative equity anywhere, I suspect places like Bow will be where it'll happen.

Bargain_Rzl

Oh come on Generali, there are nice parts of Bow.

You're right in that there are also plenty of not so nice parts!!!

I'm sure Lynzpower will have an informed opinion on this - where are you Lynz?

lynzpower

Here I am

I loved bow, its a great place to live. Generali , I used to live in the development opposite bow quarter

Its really really nice place to live and the transport system is superb there, i only wish we could have afforded to stay!


if its the heart of bow development , I personally wouldnt bother, they look very overpriced. and the development itself is ridiculously massive.

If I were to spend money in bow these days then I would go for something like this http://www.rightmove.co.uk/viewdetails-7477137.rsp?pa_n=2&tr_t=buy in bow quarter itself. youll get stumped for sericve charges tho, but it has a pool m,gym , bar, concierge etc, and the building itslef is lush.

Generali

Actually, I drove through Bow yesterday and was pleasantly surpirsed. Apart from the walk from the DLR to BQ (and that was a couple of years ago) I'd not been there in a while.

I maintain that it's one of those places that's a prime candidate for negative equity though.

Nicki

Generali wrote: »

Bow is something of a crime ridden hell hole. My mate used to live in Bow Quarter (gated community - the old Bryant and May factory) and would have kids setting piles of tyres alight under his window. Nice view across to the concrete works though.

If you're going to be stuck with negative equity anywhere, I suspect places like Bow will be where it'll happen.

Really!!! I've lived in this area for the last 10 years and prices have rocketed up! Don't know anyone who has been stuck with negative equity, and prices go up by at least 20% pa which is better than the national average. Also I've never seen any crime or anti-social behaviour of the kind you describe, nor have I seen any crime statistics to suggest that this part of London is worse than anywhere else.

I would say though that period properties are very highly sought over in this area (there are lots of Victorian and Georgian properties around), and that these are the ones which tend to appreciate in value. If you are looking to protect your investment, I might be more inclined to buy a period flat conversion rather than a new build. Having said that I have seen the show houses in the Heart of Bow development and they are lovely.

Doozergirl

lynzpower wrote: »

If I were to spend money in bow these days then I would go for something like this http://www.rightmove.co.uk/viewdetails-7477137.rsp?pa_n=2&tr_t=buy in bow quarter itself. youll get stumped for sericve charges tho, but it has a pool m,gym , bar, concierge etc, and the building itslef is lush.

What IS that in the bed?!

Seriously though, if you want to protect yourself from price falls then buying a brand new flat is probably not the way to go, by the recent news reports and the people that are popping up here all too often. The prices are heading backwards even where the rest of the market is stable; the premiums being asked by builders are unjustifiably high. Do not be swayed by a show flat, for goodness sake. They are lovely but what you end up with is a magnolia box that won't seduce subsequent buyers in the same way

Even a second hand, new build flat provides better value for money.