New Build Phases

tootiemac

Hi All,

Me again!

Does anyone have any knowledge about New Build Phase pricing.
We are being told that House type A in Phase 1 of the building will be £X but in phase to the exact same house will be more.

Is this true?
We're trying to decide whether to reserve now or wait for Phase 2 when we've managed to solve a few niggles around the house and make it look neater.

Any advice or experience would be greatly appreciated.

thanks!

LittleMax

No hard and fast rule - it depends how fast the housing market in that area is rising. New build prices will rise by same sort of percentage. You may prefer to wait to get a better plot etc., but same as buying any house, you run the risk of prices rising and no longer being able to afford as much house for your money.

Fuzzyness

house builders will either speed up or slow down how quickly they build out sites depending on demand and how quickly or slowly houses are selling. if they are selling quick and they are acheiving the sales prices they want they'll speed up but conversely if no one is buying and they have standing stock (completed houses but no purchaser) they'll slow down. buying in phase 1 will mean you are the bench mark for how quickly they decide to build and how they would price accordingly. its tricky to say what demand will be like. if you wait to see whether prices will be the same or less you win, but if not and demand is high they'll go up. no one can answer the question of when to buy and it'll come down to your own attitude to risk and reward.

BrookeWinn

House builders always take more time than the said time to complete the construction.

Pixie5740

Every development is different. I was looking to buy a new build a few years ago. In Phase I (nothing had been built yet) the house would cost me £525k. 6 months down the line when a few more plots had been sold and some building work had started the same style house was been marketed for £575k. Roll on to 2015 and due to a slow down of the local economy (Aberdeen) those same houses are been marketed for £485k plus the builder will pay your LBTT.

So it very much depends on the local housing market. Generally the sooner you get in the less you pay for the property but that's not always the case.

lcfcstephen

BrookeWinn wrote: »

House builders always take more time than the said time to complete the construction.

This isn't accurate - mine said they would finish mid October. In June I was told it had moved to Mid September and in July I was told that it would complete at the end of August. Admittedly this wasn't ideal (I wouldn't have tied myself into a six month rental if I'd known I'd only be there two and a bit months) but it was nice to be in earlier than expected

teddysmum

Different phases costing different prices has been common practice for years. It certainly was so on our estate back in 1971.

sparky130a

Fuzzyness wrote: »

house builders will either speed up or slow down how quickly they build out sites depending on demand and how quickly or slowly houses are selling. if they are selling quick and they are acheiving the sales prices they want they'll speed up but conversely if no one is buying and they have standing stock (completed houses but no purchaser) they'll slow down. buying in phase 1 will mean you are the bench mark for how quickly they decide to build and how they would price accordingly. its tricky to say what demand will be like. if you wait to see whether prices will be the same or less you win, but if not and demand is high they'll go up. no one can answer the question of when to buy and it'll come down to your own attitude to risk and reward.

Rubbish. HB's gain nothing by hanging around. Quite the opposite with prelim costs and fixed costs like supervision and welfare provision.

They want to bang them up, leave and finance the next site.

bruich76

We are buying a new build house. Phase 1 was completed and the first batch of the house we are buying was sold for £310,000.00, the next ones went for £315,000.00 and we have to pay £320,000.00.


We tried to negotiate that down but because the demand for them is there they are continuing to increase the price and when Phase 2 is out they said they are likely to be £330,000.00.


As someone above said it depends on how fast they are selling.

Fuzzyness

sparky130a wrote: »

Rubbish. HB's gain nothing by hanging around. Quite the opposite with prelim costs and fixed costs like supervision and welfare provision.

They want to bang them up, leave and finance the next site.

i beg to disagree. you build too quick, the supply increases and the price goes down. simple economics.

bruich76

sparky130a wrote: »

Rubbish. HB's gain nothing by hanging around. Quite the opposite with prelim costs and fixed costs like supervision and welfare provision.

They want to bang them up, leave and finance the next site.

Just not true at all. Cash flow is king. Building houses costs a fortune depending on how many people are on site the developer could be looking at over 100,000.00 worth of overheads per month (probably more) and if they are not selling houses then that leads to no cash to continue building. Not good.


Cash is key. That's why they build them in phases. Its not economical to do it otherwise.

Fuzzyness wrote: »

i beg to disagree. you build too quick, the supply increases and the price goes down. simple economics.

As above. Its the same with construction companies. Cash is key and when construction is taking place you are not earning any money and you have out-goings going out of your ears. The only way to match up both sides of the process is to have phases and slow down / speed up according to demand.