Price of new build vs older property,

Kynthia

Whether new builds costs more of less than older properties in the area varies by area and depends on local demand for both and how good both are. If the local new builds are small rooms, small gardens and plasterboard walls when there are decent sized and quality 1930s houses around then that's different to a site where they are building large detached and goid quality four bed houses in an area that doesn't have hardly any older four bed houses and there's demand for them.

New builds can lose money in the first few year, especially if there are still lots of similar new builds being built, as why would your buyer buy you 5 year old one when they could get new. People hope house price increases will cancel the effect buy if there is a crash or stagnant period in the market then you can end up in negative equity or selling for a loss.

sam3103

I'm no expert but I guess it depends on the area too.
New builds in my area are significantly higher in price than existing properties. My sister in law has just bought a new build and it has almost no storage. It cost £25, 000 more than her previous house and it was of a similar size minus a garage.
I have just sold a new build apartment, we had it from new and 6 years later we sold it at a loss after it was on the market for 18 months. But that is an apartment rather than a house...

peter_we

In Battersea newer buildings sell for significantly less. Lack of character compered to the older buildings?
On the other hand in Nine Elms development has prices 50-100% above the Battersea price for old houses. I'd put that down to developers !!!!!!!!. After all the build cost is 10% of the land cost there..

AdrianC

Nobody's yet mentioned the effect of the various Help to Buy schemes, where incentives are only available on new-build property. Add that to the bling-effect, where many people prefer to pay more in order to have some choice over finish and to be the first to live there, and the premium for new-build is definitely real.