Bought a new build and may be price drops in neighbouring properties

stamford

mystic_trev wrote: »

:rotfl: :rotfl: :rotfl:

http://www.youtube.com/watch?v=jmHwre7CsNY&NR=1

Fantastic :rotfl:

Bruno Powroznik needs to get on this forum and enlighten us with his theories hopefully his repertoire is wider than just "buy to rent garbage "

dolce_vita

:T

cracking find trev.

bruno in the flesh............

and not an umbrella in sight.

What a sad b*stard

:rotfl:

Greenstuff_2

Who is Bruno?

StuH_2

andyyorks wrote: »

Hi StuH,

You may end up paying more for your house on the development but as you bought one of the first ones then I assume you chose one of the best plots. This should mean that you will be able to sell your house for more in the future. It may not make up for the difference but it may soften the blow a little. House prices can vary quite a lot in new housing developents and it is not uncommon for builders to lower their prices to sell the remaining plots as they are usually the lease desireable.

Enjoy the house.

Andy

Thanks Andy, you have got that right. We have what we consider the most desirable plot. totally unoverlooked with lovely views over a valley and a sunny back garden

StuH_2

Tootie_Fruity wrote: »

StuH

What kind of mortgage (if any) do you have on the property ? Is it's repayment / IO is the rate fixed or variable ?

its repayment on a discounted variable rate

horace_2

StuH

How many houses are on the estate and how many are occupied at the moment?

h

bazzzz

Greenstuff wrote: »

Who is Bruno?

http://www.housepricecrash.co.uk/forum/index.php?showuser=59

tenroom

stamford wrote: »

Mug buyers fall for the puerile marketing by the developers.

Agreed . . . nothing funnier than the photos of chisel-featured, Armani-clad, gnat's-!!!!-drinking models grinning cheesily at each other on the billboards while the fat, flatulent and illiterate oiks drool over the flash bathroom fittings thinking the house is gonna get 'em laid BIG time once they move in

frugalista_2

StuH,

Other posters have mentioned that there's no recourse, which I would agree with.

Moving forward and trying to be constructive, assuming in the worst case that you are in negative equity or near negative equity already, it might be best to start thinking about how this might affect you in the future. For example, what was your deposit as a percentage of the value when you bought? Is your mortgage fixed-rate or does it have some other kind of beneficial initial period, and how long is it the beneficial initial period for?

The reason I ask is that if you are in negative equity when the beneficial initial period ends you may not be able to remortgage at all, and you will therefore go on to the lender's standard variable rate (SVR) which at the moment is probably around 7.5%, and goes up and down with the base rate. For most people this would be pretty bad news.

Whether or not this comes about depends on how big your deposit was, how long your beneficial initial period is, and what the market value of the property does in the next few years.

If you think that this might be an issue, it could be worth looking into overpaying your mortgage so that when you come out of the beneficial initial period, you are still at 90% or 95% loan-to-value.

frugalista

frugalista_2

Generali wrote: »

Negative equity doesn't matter unless you want to sell or refinance anyway.

Most people will want to refinance, though, won't they. The most popular mortgages are two-year fixes. For someone paying over the odds right now, it's quite possible they will be in negative equity in 2 years when they want to refinance.

frugalista