New Build Negotiation

Captain_Tom

seems a bit silly to wait until that point to negotiate? I understand that you can also negotiate at that time if the valuation is a major difference but surely you would only get that far on a house which you could afford in the first place?

Vampgirl

Captain_Tom wrote: »

Yes, thank you for that, I have had a quick look however as houses are being advertised off plan it is hard to find comparable sales and also do not have a postcode to check current sales.

So any one else with any other advice?

You need to be a bit creative then - use google maps to find a nearby postcode you can use for research, find the details of the off plan house you are interested in (most developers have the floor plans and dimensions on their websites or in the sales office). Use these to find some local comparables.

You don't say where you are or how popular the development is - these things will have a major impact on whether you are successful in negotiating either price or extras. Its a fallacy that all new builds are over-priced: ours wasn't - it was in line with similar size houses locally (which meant we weren't able to negotiate anything) which is probably one of the reasons that almost everything was sold off-plan very quickly.

md87

I just got 5k off a new build. However this is a small development and when we looked around it was the actual builder/seller showing us around. We had already sold our property and were willing to put the deposit down right away and therefore we manged to negotiate a small discount. As noted above you can also negotiate for fixtures/fittings and try and get better quality etc.

My only real concern was that it is very difficult to say how much the house will be worth once we move in. It's brand new and detached and unique (most others on development are semi's). However for the size of the property it is still on the expensive side I would say. But then again even if its value is slightly lower than what I paid initially, I am not planning to move again for atleast another 15-20 years so by that time surely it will be worth considerably more.

You probably pay a premium for a new build, as you would with a brand new car. But then again if you buy a new build you must surely plan to stop in it for a number of years.

pawlala

Captain_Tom wrote: »

seems a bit silly to wait until that point to negotiate? I understand that you can also negotiate at that time if the valuation is a major difference but surely you would only get that far on a house which you could afford in the first place?

Well yes, you can obviously negotiate at any stage up to exchange. But you may get a second wind upon receipt of valuation report. But don’t wait until then to try and get money off the asking price. Your second point goes without saying, but why would you want to go for houses that you know you cannot afford?

Captain_Tom

pawlala wrote: »

Well yes, you can obviously negotiate at any stage up to exchange. But you may get a second wind upon receipt of valuation report. But don’t wait until then to try and get money off the asking price. Your second point goes without saying, but why would you want to go for houses that you know you cannot afford?

Because say for example my budget is 90k but the house is on the market for 100k. If there is no movement I cannot afford it. If there is movement to the 90k area then I can afford it - that's why I am interested in the negotiation.

Fiveboy

Me and my partner are FTB and liked a new build it was priced at £268k and we offered 250k and explained we had the money for stamp duty, I also mentioned a work colleague brought the same style house for 240k (which was true and recorded on LR)11 months ago, using their part exchange process they were having none of our offer.

You can try all depends how desperate they are to sell and your local market.

JacMach

Hi
Do you know the answers to the following questions or know someone who might please


I am filling in a tax return form for extra income that I earn from renting out my house.
1) I have a full time job but my understanding is that you can earn up to so much from renting out your house(about £3,000) before having to pay tax on it. Is this true and what is it called (e.g. Venture Capital?)
2) Can I offset the interest paid on my repayment mortgage against tax returns?
3) Can I pay myself a wage or my friends a wage for time and the work done on my house?
If so is there a set hourly rate e.g. £12-50 an hour to include travel time?

lauzt1987

Hi JacMac. You're probably better of to start a new post, however, here's a quick reply to your questions

1) The £3000 you are referring to is the rent a room scheme. This only applies if you rent out a room in your house but continue to live in it. If you are renting out the whole house, no such exemption applies.

2) Yes, you can offset the interest element of your mortgage repayment against the rental income

3) In theory, you could claim an amount for your time (assuming this is for cleaning etc?) However, you would then have to report this as self employment income so no point really. You can claim mileage though, at 45p per mile for any visits to the property