New build depreciation??????

catpat88

Someone said all those purchasing new builds in Glasgow have depreciated (that they know)

I personally think it’s down to when you buy (beginning or end of development stage) how in demand the development is. And the market.

From my experience I purchased from Keepmoat in the barlanark earlybraes development. I was drawn to this development as it was a brand new development and the house I’d wanted was one of the 1st few to be built and I knew the price would be the cheapest of the whole development.

Also this was the 1st time I’d seen any keepmoat developments in Scotland. The spec seemed better than that of perisimmons who are similar in price. The doors general finish just seemed much more modern. I was initially apprehensive about the area although it was fairly local to me it is in between two graveyards.

But the demand for the houses seem to be really high. I moved in 6 months ago and the estate is about 60% completed. It’s only really around 3 streets worth of houses. Houses on the estate rarely are even advertised as they are already reserved.

I’m really glad I went for the house before I could properly see how the estate looks as it should pay off when I come to sell. The same house as mines and virtually same plot layout and size is up for 195k even though mines was 175k.

According to Zoopla our house is currently worth 189k but not sure if this is accurate? As I don’t know what they base that on.

jonnygee2

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?

One relevant factor is that there is help to buy on new builds. That means there is a larger market for any new build than there is for any non-new build. So often new builds sell for more, or at least are easier to sell.

Each house is different, but I don't think this is a great time to buy a new build house. A loss is substantially more likely by most estimates.

According to Zoopla our house is currently worth 189k but not sure if this is accurate?

Completely meaningless unfortunately.

stator

If it's a small new development in an established area, ie "Fill in" then the risks are smaller, you can use the values of the second hand houses to see what the price of yours might be.
If it' a brand new out of town development, with no second hand market near by, then the risks are high and should be taken seriously

Owain_Moneysaver

It does depend on the estate, and what competing houses are available.

A five-year-old 'new build' may do well (if not too many people are selling at the same time and there are not too many brand new builds also available) as the estate may have a more settled appearance, the gardens have grown and the houses have developed some individuality and the neighbourhood has a community feel. But the houses will still have 5 years NHBC or equivalent warranty and should still feel fairly new.

On the other hand, trying to sell a 3 year old house on an estate which is still not completed and where new builds are available hits you with the triple whammy of depreciation, estate works still in progress, and competing new builds with incentives.

hb2

There was a recent thread, on this forum, from someone who had bought an early phase new property on an uncompleted estate and was upset because the builder had now brought down the prices they were asking for houses built in later phases. If they try to sell now, they will be competing against cheaper new-builds.

Of course, there is also the dreaded 'B' word and no-one knows what is going to happen to house prices (or anything else for that matter!) in the short term

Cakeguts

catpat88 wrote: »

Someone said all those purchasing new builds in Glasgow have depreciated (that they know)

I personally think it’s down to when you buy (beginning or end of development stage) how in demand the development is. And the market.

From my experience I purchased from Keepmoat in the barlanark earlybraes development. I was drawn to this development as it was a brand new development and the house I’d wanted was one of the 1st few to be built and I knew the price would be the cheapest of the whole development.

Also this was the 1st time I’d seen any keepmoat developments in Scotland. The spec seemed better than that of perisimmons who are similar in price. The doors general finish just seemed much more modern. I was initially apprehensive about the area although it was fairly local to me it is in between two graveyards.

But the demand for the houses seem to be really high. I moved in 6 months ago and the estate is about 60% completed. It’s only really around 3 streets worth of houses. Houses on the estate rarely are even advertised as they are already reserved.

I’m really glad I went for the house before I could properly see how the estate looks as it should pay off when I come to sell. The same house as mines and virtually same plot layout and size is up for 195k even though mines was 175k.

According to Zoopla our house is currently worth 189k but not sure if this is accurate? As I don’t know what they base that on.

The zoopla thing can be wrong by £1000s so not to be relied on at all. The fact that a house is listed at £195k doesn't mean that it will sell for this. A house is worth what someone will pay for it not what the vendor thinks they can sell it for.

Pixie5740

Why is that a clue? Just because it's a new build in Glasgow or indeed anywhere in Scotland does not follow that it will depreciate.

Crashy_Time

jonnygee2 wrote: »

One relevant factor is that there is help to buy on new builds. That means there is a larger market for any new build than there is for any non-new build. So often new builds sell for more, or at least are easier to sell.

Each house is different, but I don't think this is a great time to buy a new build house. A loss is substantially more likely by most estimates.



Completely meaningless unfortunately.

It should be called Help To Sell because it is there to benefit the developer, not the buyer. It just encourages people into debt they shouldn`t be taking on to get developers balance sheets out of the red.

gotnotgotten

I agree the Help to Buy scheme is terrible and does not work for the buyer but the developers.

Whether a particular new build is a good buy or not is subject to many factors as lots of people have said. However my own experience of new build is wouldn't go near another one in my lifetime and would advise anyone else to swerve them too.

My house buying/selling history (all in good Cheshire locations):

2 bed Victorian terrace (sold at 2k profit)
3 bed Edwardian semi (sold at 30k profit)
3 bed 30's detached (sold at 78k profit)
4 bed "executive" detached (sold at 50k loss)

Now thankfully back in another older house and know it is worth a lot more than we paid for it 5 years ago,

lookstraightahead

My opinion is that if people want a new build they want it new. If you want to catch the older house market you have to wait a while. There's a new estate by us, five years old, and the repairs needed are evident - nothings been built properly and the roads are a shambles. Also the housing market - for some reason people think housing is never going to go down. If you pay 5% - 10% deposit at the moment I believe you will be in negative equity at least for the time being. You can't always make money on a house, especially short term. Actually that's quite rare.