New Build Flats: Risk warning

JoeK_3

If the property crash comes, will new build buyers be in serious trouble?

JoeK

m00m00

JoeK wrote: »

If the property crash comes, will new build buyers be in serious trouble?

JoeK

not if they bought it as a home to live in for some time.


BTL'ers, flippers, property ladder viewers, yes, these will be in trouble.

alant1000

dmg24 wrote: »

I live in a new build apartment, although there are only two of us in the block (maisonette style). I have been very lucky (although I did a great deal of research before buying), and my property has increased in value (due it being quite unique in design) over the first year. However, every other design of new build apartment on the development has decreased in value.

dmg24 wrote: »

The issue of noise is also an important consideration in apartments/ flats. I got to meet my new neighbours before moving in. They are fantastic, very helpful and very quiet. However, having lived in a flat for the past two years, I am all too aware of the upset that noisy neighbours can cause.

alant100, buying your first home is very exciting, and I really do wish you all the best in your new home. However, I do think that you are looking through rose tinted glasses at the situation? x

Dear DMG,

I will attempt to answer your questions to a satisfactory level, but something tells me I am flogging a dead horse!!

1/ I say SLIGHTLY over valued, as anything substantially over valued would not sell. The market prices are dictated by what people will pay, not what the agents hope they’ll get for them. A new build tends to appeal to a certain type of buyer, hence why there is a premium paid – I for one wanted a new build and was willing to pay more for this (slightly)

2/ I am delighted that from start to completion it was 3 weeks, WELL DONE to you. However the reality (or so I hear) is more like 4-6 weeks, and this depends on how advanced the build is when you offer. My solicitor is very thorough, speaks to me every day and I am more than happy for it to take time if I know she is being thorough.

3/ I do in fact have experience, although I sense that you wish I didn’t, and that I am destined to failure. I would be questioning why your service charge rises year on year, one year maybe, but every year suggests poor planning on the part of the management company. I assume that as you are experienced, you are checking the accounts to find out just why this is going up? Where is all this money going, and why not get those in the block to club together to see if you can sack the contractors such as cleaners and gardeners who may be responsible for the rise? Or is it just that you are being fleeced?! A well managed and thought out service contract should have enough to cover fees AND build a contingency for big projects like roof and painting the exterior. This is normal.

I would love to explain re: loss from service charge. The first round of tenants on a leasehold are contributing to a contingency pot to pay for major repairs via the service charge, even though major repairs are unlikely to happen for the first few years. When you move out, you wave goodbye to that fund you have contributed to. HOWEVER the next lot of tenants somewhere along the line will get to benefit from your contributions, for example if the exterior needs painting.

4/ Yes, I have been a clever boy and have taken into account settlement – I got my solicitor to write in into the contract that they will come back in 6 months to do an evaluation and fix (but thanks for caring). I have had confirmation that these faults will be covered by the NHBC warranty – something which buying an older flat does not bring, so there is yet another benefit, thanks for pointing this out!! At the point of moving in, I am not the developers responsibility anyway, I would be dealing with the management company.

Kitchen and Carpets – Bizarre that this may sound, I was actually planning on having kitchen appliances and carpets in the flat anyway, so paying the “premium” in fact ensures I don’t have to BUY, pay for delivery, and wait at home for them to be delivered, in addition to getting someone to fit them. Maybe I will just sit and stare at them instead, that way they will be brand new when I move out and I can demand more money for them, what do you think??!

In summary – the OP sounds like he was asking for investment advice in the short term, in which case new builds are a bit iffy at the moment. But some of us also buy these new builds just to put a roof over our heads!

Which bit from the above made you feel I was wearing rose tinted glasses then? :rotfl: . We are not all as stupid as you may like to think

TTMCMschine

If you know that its over priced - slightly or otherwise - & that the price is likely to fall in the first couple of years (or more), then why don't you buy a nearly new flat, maybe a couple of years old, that someone is selling where they've already taken the hit on devaluation.

Sapphire

meanmachine wrote: »

New builds - avoid.

Mansion flats in London / Edinburgh - OK.

Ideally always go for a 2 bed house with a bit of garden rather than a flat.

If there is a downturn - and it seems to be happening in some areas already - new builds in towns and small cities will be hit hardest.

I'd say purpose-built Victorian and Edwardian maisonettes (with gardens, own front doors) are also pretty good, and can give you more space that a 2-bedroom cottage. They tend to be solidly built so noise isn't as much of a problem as it is with new-builds. NB Noise can be a big problem if you live in a house too, if you live in a cramped inner-city area with houses on either side. :cool:

gabyjane

Garnet_Gem wrote: »

I don't think the soundproofing is ever good in new build flats. If you wanted a flat maybe an older well maintained building would be better.

Hmm tell that to my friend who has recently purchased a victorian flat with an old lady underneath! she is ripping her hair out as it's one of the noisiest places she has lived in!! Said she may aswell knock through and they can all live together!!

alant1000

Sapphire wrote: »

I'd say purpose-built Victorian and Edwardian maisonettes (with gardens, own front doors) are also pretty good, and can give you more space that a 2-bedroom cottage. They tend to be solidly built so noise isn't as much of a problem as it is with new-builds. NB Noise can be a big problem if you live in a house too, if you live in a cramped inner-city area with houses on either side. :cool:

just though i'd point out that to generalise and say that all new builds are built to a poor quality is not strictly speaking correct and a bit misleading - mine that i am about to move into has solid brick walls throughout, carpets, solid granite worktops etc... so if you see a new build advertised, don't just turn your nose up at it straight away, they can have real benefits over some older properties such as energy efficiency and NHBC warranty, which although limited, is better than none at all.

smugbear2007

converted mills, barns, old buildings with character that get converted do better than the new builds with 90 to a block and resemble prison wings. how on earth can you sell when 10 other people in the same block also want to sell.
i personally wouldnt touch a new build, but my advice if you want one is to buy in a nice area/good schools (obviously), buy form smaller developments if possible, ie 10-15 block max.