New build depreciation??????

Dhandy

Hi everyone, hope you're all well! Just a bit of advice please.
Currently looking at a new build but have heard that as soon as you buy the house it depreciates. I have tried looking at other posts but there is no clear advice.
I would be looking to stay in the house I buy for 3-5years. would I be looking at a loss if I bought it and come to sell? I sure as hell don't want negative equity. I would buy an older house but the 10% is so hard to get unlike the 5%. Please somebody give me some sound advice.
Thanks Dhandy:money:

Cakeguts

You pay a premium for a new house. When you come to sell it you will be selling a second hand house like any other house.

Chanes

You do pay more for a new build but they don't always lose money, we have a friend who bought a new build and sold it three years later with a 30k price increase, the estate became a desirable place to live. As always, location is everything.

comeandgo

It all depends on demand. Our new house was the first on the estate, it has increased all the time, but it's not one of hundreds and it's not a Betts box.

daveyjp

Depends. If it is a very large development which isn't finished it could be the case that there is a significant price rise during the construction period.

G_M

Imagine a new estate of houses, say 50.

The first 20 - 30 are built, and sold. Over the next 6 months the next 30 are built. As the final 30 are finished, and put up for sale, a few owners of the 1st 30 decide to start families so put their houses up for sale in order to 'upsize'.

Will buyers want to pay the same for one of the 2nd-hand 1st 30 houses as they would pay for one of the brand new 30 just going on sale for the 1st time?

chanz4

myn was new 3 years ago, its gone up not down

MyOnlyPost

G_M wrote: »

Imagine a new estate of houses, say 50.

The first 20 - 30 are built, and sold. Over the next 6 months the next 30 are built. As the final 30 are finished, and put up for sale, a few owners of the 1st 30 decide to start families so put their houses up for sale in order to 'upsize'.

Will buyers want to pay the same for one of the 2nd-hand 1st 30 houses as they would pay for one of the brand new 30 just going on sale for the 1st time?

Imagine an estate with three phases of 150 houses each. Each phase of 150 houses is built 25 at a time and each time a new 25 are built the asking price increases. At the end of the 3rd phase there have been 18 price increases so those built at the beginning of works will have gone up in value and those at the end of works likely gone down

lee111s

Depends on the area and the estate.

The same style house as mine is now being sold for £15k more than we paid and we only completed in November (reserved last June).

JP1978

Mind that any profit made may be quashed with moving fees, so would have to be a decent profit to cover that.

G_M

MyOnlyPost wrote: »

At the end of the 3rd phase there have been 18 price increases so those built at the beginning of works will have gone up in value and those at the end of works likely gone down

Those built at the beginning will have gone up in value in relation to the price they originally sold for.

But that is not the comparison being made. They will still be (almost cetainly) selling at a discount to the price being charged for the new houses.

The market price for properties as whole may rise, or fall over time, but at any given time the 2nd house will sell for less than the oterwise identical new one.

As the OP said: "as soon as you buy the (new) house it depreciates."