New build depreciation??????

Ray_Singh-Blue

I bought a new build and sold it five years later for exactly the same price. This was in line with what Zoopla and Nationwide House Price Calculator suggested would happen for houses in general over that period. So it seems that in my case, buying in a new build house did not prove to be a financial disadvantage.

What was advantage, was the ease of living in a warm, light, efficient, low maintenance house while the children were small. Happy days & I'd do it again.

hazyjo

Ray_Singh-Blue wrote: »

I bought a new build and sold it five years later for exactly the same price. This was in line with what Zoopla and Nationwide House Price Calculator suggested would happen for houses in general over that period. So it seems that in my case, buying in a new build house did not prove to be a financial disadvantage.

What was advantage, was the ease of living in a warm, light, efficient, low maintenance house while the children were small. Happy days & I'd do it again.

House price calculators are very unreliable.


It depends which years you're talking about. My house from 2006-2011 was pretty much bought/sold at the same price. My house from 2013 to 2017 has doubled.


Jx

clint_S

It really depends. On my estate people are paying more for the 2nd hand houses than the builder is charging for identical new houses. Plus the fact that the house prices have increased 2% each year for the last 4 years on the estate. People seem to not want to wait for the builder to finish the house and move into a house that has already had all the faults found and fixed, but is still new enough to be a new house.


Having said that the new builds are still a good 10 -15% less than the same sized older house in the area.

Ray_Singh-Blue

hazyjo wrote: »

House price calculators are very unreliable. It depends which years you're talking about. My house from 2006-2011 was pretty much bought/sold at the same price. My house from 2013 to 2017 has doubled.

What are you saying Jo? Are you saying that house price calculators were less reliable in certain years, or for certain types of houses such as new builds? Were either or both of your houses new built? It might help the OP if you could clarify.

My post was to let the OP know that my newly built house did not appreciate or depreciate in value compared with pre-owned houses during the 5 years I lived in it. At least, this is true as far as I can tell from the house price indices which were published at the time, and on which some calculators are based. I do not know if my house was typical, but together with other replies I hope it will help the OP form an opinion about the answer to the question they asked.

hazyjo

Ray_Singh-Blue wrote: »

What are you saying Jo? Are you saying that house price calculators were less reliable in certain years, or for certain types of houses such as new builds? Were either or both of your houses new built? It might help the OP if you could clarify.

My post was to let the OP know that my newly built house did not appreciate or depreciate in value compared with pre-owned houses during the 5 years I lived in it. At least, this is true as far as I can tell from the house price indices which were published at the time, and on which some calculators are based. I do not know if my house was typical, but together with other replies I hope it will help the OP form an opinion about the answer to the question they asked.

I'm saying Zoopla and the like have no scientific way of valuing a house, let alone predicting what it will be worth in the future. It overvalued my last house by around £150k, and is undervaluing my current house by around £100k (along with the houses I'm looking at to buy).

The reason Zoopla got it so wrong with my last house was (I think) because it had been a new build when the people before us bought it. They had paid top whack for that house and only sold it for £35k more 8 or so years later. (Traditionally house prices will double in 10 years.) Other houses in the area (Brentwood) had increased by a much higher percentage. Incidentally, we 'made' £25k in two years on the same house.

Nobody can predict the market - least of all a computer.

Not every new build is like a car where you lose value the moment you buy it. Often depends when and where you buy it and if you're one of the first, middle or last buyers. Generally though, you do pay a premium for a new build.

Also not a good idea to buy a house for only 3 years or so as moving house costs a fortune, and the market can be unpredictable! (Although I have done it - sometimes at a loss, sometimes having made.)

Jx

NOVAMET21

hazyjo wrote: »

Not every new build is like a car where you lose value the moment you buy it.

Jx

Very true. It depends on location, level of demands and other things whether the new build's prices increases or decreases.


I know some builders over price their houses but I think the reason why new builds are more expensive is because of the warranties and there are less likely to have things go wrong. For example, if you bought an old house, there is no certainty that the roof might need doing or the boiler might not work, etc. With new builds there is at least 1 year warranty and sometimes 2 years.

ellie27

neilio wrote: »

How many years later were they selling?

Ranging from just 3 years to around 8/9 years. In my area you would be very lucky to get back what you paid for a new build property.

Jon_B_2

Ellie, the clue in yours is that it is Glasgow, or Scotland.

I bought our new build in Bristol 18 months ago. The estate is now finished and houses of the same type and size are selling for between £40-50k more or 14-18%.

ellie27

Jon_B wrote: »

Ellie, the clue in yours is that it is Glasgow, or Scotland.

I bought our new build in Bristol 18 months ago. The estate is now finished and houses of the same type and size are selling for between £40-50k more or 14-18%.

You will be hoping it stays going in that direction then!

NOVAMET21

ellie27 wrote: »

You will be hoping it stays going in that direction then!

Is your development near any hospitals, big companies, big supermarkets, research buildings where there are lots of workers such as doctors, surgeons, directors, nurses, scientist, etc?


If your development is in the middle of nowhere or not near these then yes the value will not increase. The development I live in is near to all above. It has the biggest hospital in England, biggest pharmaceutical company, most expensive supermarket (Waitrose), Cancer Research buildings, etc.


As you can see there will be lots of staff and my neighbours are all mixed. Some of them are Scientist, Art Designers, Company Directors, Doctors but I also have some social tenants who have 4-6 kids and they are nice. So if your development is near job opportunities and demand then the price will continue to rise.