New build depreciation??????

guccininja

Location, location, location is key.

New builds wont make money with Brexit causing concerns for a couple of years unless it's in a prime area.

A new build only makes sense, if you're building it yourself. New builds are horrendous, no storage space at all and the prices are ridiculous. £180k to build speaking to a developer and selling for £650k! I know theres a cost for the planning/land/time etc but still.

catpat88

The same house as mines across the street on a slightly nicer plot (larger front garden and drive) was sold for 200k a couple of months ago. They are going fast so I don’t think they will have trouble selling.

Cakeguts

catpat88 wrote: »

The same house as mines across the street on a slightly nicer plot (larger front garden and drive) was sold for 200k a couple of months ago. They are going fast so I don’t think they will have trouble selling.

How do you know that it was sold for £200k did the owners tell you? The fact that it was listed at £200k doesn't mean that is what it sold for. You have to wait for the land registry price list to come out and it won't have been published yet.



Or was it a new house?

HanPop

We bought our new build for £140,000 in 2013 and had it valued at £170,000 this year. We’re going to sell after Christmas so we’ll see what we get but I’m hopeful we’ve made a bit of money

Grenage

The value drop is only initially. If you bought in January and sold again in march, you'd generally get less. After that initial drop it will probably go up and down in line with other houses in the area.

I'd be wary about buying a house with selling in mind in the next 3-5 years, especially with a small deposit. The market might crap itself and you'd be in negative equity; for a longer term purchase it's irrelevant.

Of course the market might be fine; nobody knows.

Cakeguts

HanPop wrote: »

We bought our new build for £140,000 in 2013 and had it valued at £170,000 this year. We’re going to sell after Christmas so we’ll see what we get but I’m hopeful we’ve made a bit of money

Valued by whom? Estate agents overvalue to get your business. Your house is worth what someone will pay you for it.

Tom99

[FONT=Verdana, sans-serif]I used to work for the Valuation Office on their Automated Valuation Model, ie a computer program which can value any property, as at any given date, using recent nearby sales as evidence.[/FONT]

[FONT=Verdana, sans-serif]It order to test the accuracy of the model and adjust it accordingly, it was set up to estimate the value of every property on the date it was sold, obviously without telling the computer the figure that particular property sold for.[/FONT]

[FONT=Verdana, sans-serif]The model always underestimated the 'value' of a property which was a new sale. This was particularly noticeable on new flats when the model, using nearby comparable sales, would estimate a figure 10% to 20% below the price actually paid.[/FONT]