Have I made a mistake purchasing a London new build?

economic

Buying new a new build means you already have taken a hit as if you were to sell it you won't get the price you paid but something quite a bit lower. Not sure if stoke newingtin but generally there are many areas where there is an oversupply of new builds being sold off. This may affect your "investment". However it is a home as well and you obviously like the property so I wouldn't worry about prices. Beats renting!

Crashy_Time

economic wrote: »

Buying new a new build means you already have taken a hit as if you were to sell it you won't get the price you paid but something quite a bit lower. Not sure if stoke newingtin but generally there are many areas where there is an oversupply of new builds being sold off. This may affect your "investment". However it is a home as well and you obviously like the property so I wouldn't worry about prices. Beats renting!

Depends where you rent.

Crashy_Time

Hoploz wrote: »

I think in London you're pretty safe. Are your family from London, or elsewhere? It's a market all of its own.

Have you looked around at other new developments nearby as a price comparison?

http://uk.reuters.com/article/uk-britain-eu-banks-idUKKBN184132?utm_campaign=trueAnthem:+Trending+Content&utm_content=5910998704d3011eba8524de&utm_medium=trueAnthem&utm_source=twitter

hazyjo

What you also have to remember is you'll probably have pay rises, and overpay the mortgage where possible, plus you'll have paid a chunk off - so even if the market goes static or drops and it's worth the same or less, everything else will have dropped too.

Negative equity only happens when you owe more on the property than the equity covers. I've moved a couple of times when my property's been worth less or the same as what I paid years before. I've not suffered because of it - it often puts properties in your reach that you'd otherwise (in a rising market) have no chance of ever buying - especially if you're moving out of London a bit.

As above - try to see it as a home.

Jx

Crashy_Time

Basically you bought at the very peak of the biggest property bubble in history, which has been further pumped up by government/central bank intervention that is no longer politically or economically viable. Just pay down the debt before interest rates shoot up, and accept that you are going to lose money.

Crashy_Time

http://www.housepricecrash.co.uk/forum/index.php?/topic/228842-postcode-pricevolumeinventory-charts-watching-the-crash-in-slow-time/&page=8

hounsehunterftb

AS hazyjo suggested, I would overpay on my mortgage and reduce the dead money in the form of interest. That would get your capital down and when you do have to sell you will get your money's worth. Always think of this house as a "better" option than to keep on paying rent i.e paying somebody else's mortgage.

Just keep your flat up to date always and make sure it will pay off your mortgage at each level.

And otherwise in terms of location you need not worry. It will sell just fine!

Instead of worrying just enjoy your new home to the fullest!

hounsehunterftb

Crashy_Time wrote: »

accept that you are going to lose money.

OP: Even if you lose money, it would still work out to be cheaper than your rental!

Mickygg

OP whatever Crashy says just ignore. He trolls the Internet posting about his hope of house price falls and is known on here as a trolling idiot.

bobbymotors

Mickygg wrote: »

OP whatever Crashy says just ignore. He trolls the Internet posting about his hope of house price falls and is known on here as a trolling idiot.

^^^^^^THIS^^^^^ALL^^^^DAY^^^^^LONG


Crashy...who has saved tens of thousands in mortgage payments by paying out more than tens of thousands in rent and has nothing to show for it except a tenancy agreement has no idea whatsoever. The simple fact is that our population is growing, we have a fairly benevolent democracy, money is, and will remain relatively cheap (ie <5%) for the foreseeable future, and since we are an island...
they cant therefore make any new ground.

There WILL be ups and downs in the property market. However I bought my first house in the 70s and to the best of my knowledge there has never been a time in modern history where houses have not gone up over a 10 year period - any 10 year period you like, be it 1972-82 76-86, 88-98 etc.

So...sell tomorrow, yes you will lose out
sell in 5 years you might lose out but doubtful
sell in 10 years never