Exchanging soon but feeling conflicted! Should I buy?

reeshay

Hi,

I'm in the process of buying a new build apartment courtesy of Fairview new homes (in fact I'm due to give 5% of my deposit to my solicitor on Monday) but i'm having some doubts about the property.

I am using the Help to Buy 1 scheme meaning that the government owns 20% of the apartment and I would like to sell the apartment in about 5 years (just before the interest on the help to buy equity share starts).

The property is in North West London near a tube station and costs £247k. I've heard a lot about the "premium" on new build properties and was wondering if this would make it difficult to sell without losing money. Most one bedroom properties in the area start at £230+ with some even costing £320. However my property is next door to the tube station (hopefully making my property a better catch).

Now onto the negatives that have me worried:

First and foremost it has a mental care home just off my road (5 min walk away). My issues here are in terms of safety and resale. I don't mean to sound unreasonable and completely understand the importance of such homes however i will be living on my own.

Secondly a student accommodation complex (18/+ floors) is due to be built next year. Again i'm afraid this may hurt resale.

Thirdly, 1/3 of the property is social housing (hate to sound like a broken record but,) would this affect resale?

Edit: Fourthly I'm signing a 25 year contract with E.on to provide my electricity and heating with a £400 service charge and at around 9p/kWh due to it being a District Supply. Although i am aware that this is the case with most new-builds

The reason I am considering this property is the fact that is close to the station (as I sometimes leave work at 9-11pm). Also the price is right within my affordability and I am worried that if I wait for another property I won't be able to afford it (as house prices in London are rising rapidly).

Hopefully you can all put my mind at rest and aid my decision.
TIA

silvercar

Colindale?

Always seemed a bit of a dump, sandwiched between better areas. That said there has been a lot of development there recently.

My worry on sale would be that the market could be flooded by nearly new flats in a few years time.

reeshay

Hi Silvercar ... thanks for the prompt response!

Yes it is Colindale (the only area i could really afford), the dream would have been Hendon/Golders Green or Hampstead at a far stretch.

You're right in the fact that Colindale will be flooded by new flats, but i've always thought the majority are Buy to Lets.

Should the number of new flats in the area put me off?

elsien

What on earth is a mental care home?

reeshay

elsien wrote: »

What on earth is a mental care home?

It is a type of rehab / halfway house for those with Mental health problems Residents stay for 2 weeks at a time.

elsien

Then it is likely to be staffed with the residents having been risk assessed before being offered a place. Wouldn't be an issue for me.

silvercar

reeshay wrote: »

Hi Silvercar ... thanks for the prompt response!

Yes it is Colindale (the only area i could really afford), the dream would have been Hendon/Golders Green or Hampstead at a far stretch.

You're right in the fact that Colindale will be flooded by new flats, but i've always thought the majority are Buy to Lets.

Should the number of new flats in the area put me off?

If they are selling quick, then there must be demand. Too many BTLs and the area starts to look a bit uncared for. Also too many BTLs and some could be empty for a while. It is not that unusual for investors to buy for the capital growth with the intention of selling on quickly, so they don't actually tenant the properties.

You are buying to live in, so future values at this stage is not so crucial, but what price are they selling new stuff for now?

I wouldn't be worried about the mental health unit. This is London, everywhere is near something that someone will find undesirable.

Same with the student block. If it isn't that near a general student area it will be OK. It may even be for mature students/ post grads/ students with families etc who want to be off the main campus.

reeshay

elsien wrote: »

Then it is likely to be staffed with the residents having been risk assessed before being offered a place. Wouldn't be an issue for me.

Yes, you're right it is staffed and i assume planning permission would have taken it into consideration. My main issue is when I visited the home the gate was wide open.

Thank you for you comments, that has been the main issue worrying me concerning the property.

reeshay

silvercar wrote: »

If they are selling quick, then there must be demand. Too many BTLs and the area starts to look a bit uncared for. Also too many BTLs and some could be empty for a while. It is not that unusual for investors to buy for the capital growth with the intention of selling on quickly, so they don't actually tenant the properties.

You are buying to live in, so future values at this stage is not so crucial, but what price are they selling new stuff for now?

I wouldn't be worried about the mental health unit. This is London, everywhere is near something that someone will find undesirable.

Same with the student block. If it isn't that near a general student area it will be OK. It may even be for mature students/ post grads/ students with families etc who want to be off the main campus.

Didn't think about the negative sides of having lot's of buy to lets in the area. I am looking to live there however I hope to sell in five years due to the fact that I would'nt like to pay interest on the government's equity share. But in 5 years i'm hoping i'll make enough profit to buy a comfy two bed.

The resale value varied in that complex between £240k to £300k in 2014 for a one bed.

cte1111

reeshay wrote: »

Yes, you're right it is staffed and i assume planning permission would have taken it into consideration. My main issue is when I visited the home the gate was wide open.

Thank you for you comments, that has been the main issue worrying me concerning the property.

If it is a halfway house, it is likely that the residents will be free to come and go, so the gate would be open. I can't see how it would affect you really.

The other points, none of us can give any guarantees about the future value of any property. Does the flat suit you as a place to live? Can you afford it? If so, then it is probably the right one for you.

reeshay

cte1111 wrote: »

If it is a halfway house, it is likely that the residents will be free to come and go, so the gate would be open. I can't see how it would affect you really.

The other points, none of us can give any guarantees about the future value of any property. Does the flat suit you as a place to live? Can you afford it? If so, then it is probably the right one for you.

Thanks for replying cte1111,

The main attraction of the house has been it price. I'm fairly positive that I can afford it (i've done some budgets and have areas whereby I can cut costs if need be). In terms of flat - it's a bit on the small side and the area wasn't what I initially had in mind. However, due to the amount of funds I have I am restricted in terms size and location (however, i've come to accept and warm to the idea of the flat).