Have I made a mistake purchasing a London new build?

richardwilson1984

What is the property, a one bed flat, two? Where in Stokey?

My LL bought his property on Clissold Road 10 years ago for £200k. It is a large two-bed flat and I had a look on Zoopla and it shows estimates of around half a million now.

You'll always pay premium for a new build but the way I look at it is London isn't going to go in reverse. It will never shrink back to being only the confines of the 'London wall' so I'd say you will be ok.

As others have said though, stop worrying. You've bought in a good area; relatively close to central and it will be a good home for five years (according to your plan).

If at the end of it, you make a load of money, great. If you get your cash back, great.

SuzieSue

Everyone worries that they have overpaid when they buy a property, especially a new build. I know I did. You wouldn't be normal if you didn't.

AlexPF

If I were you (and I'm in your same situation) I'd hope for prices to crash, particularly if you took the HtB 40% loan. And if you fixed your mortgage for long enough, you won't have to fear the rapid BoE rate increase that will follow
It means that it will cost you much less to pay back that loan, while keeping your mortgage payments as they are.

In the long run, global population will keep rising and London/UK will fix itself in regards to Brexit (immigrating to the US or Australia is not easy either, yet NY & Sydney prices are up like crazy). Growning house prices are a thing and housing will always go up in capital cities, in the long run. Simple supply and demand law.

Hope for a crash soon, pay back your HtB loan then and sell once prices are back to where they were when you purchased it, or higher.

Also remember, your exposure to crashes is mitigated by the HtB loan itself.

As per any investments, patience is the key

Crashy_Time

hounsehunterftb wrote: »

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

Maybe, in London, looking only at monthly payments with the lowest rates in history, but in the real world I would rather be attached to a cheap rental than a large debt on an illiquid asset in a stalling market, especially if rates rise.

economic

Crashy_Time wrote: »

Maybe, in London, looking only at monthly payments with the lowest rates in history, but in the real world I would rather be attached to a cheap rental than a large debt on an illiquid asset in a stalling market, especially if rates rise.

maybe if you were speculating on houses. if the OP plans to stay for a whilst or even sell and buy somewhere else, it makes perfect sense to buy now. although i would never buy a new build myself. however buying a new build certainly beats renting! renting when you can afford to buy is just stupid.

Crashy_Time

glasgowdan wrote: »

Its5more a case of taking advice from people who have knowledge of housing markets. Crashy knows a flat zero about it yet constantly gives out bad advice which isn't helpful to anyone

The problem for the OP though is, are they reading advice from people with real knowledge or just from people who have recently got themselves into a lot of debt for a property (or are trying to sell one) and want to justify their own decision/price/hopes for the market to themselves? For a one bed apartment, at that price, I hope the view is nice.......

economic

Crashy_Time wrote: »

The problem for the OP though is, are they reading advice from people with real knowledge or just from people who have recently got themselves into a lot of debt for a property (or are trying to sell one) and want to justify their own decision/price/hopes for the market to themselves? For a one bed apartment, at that price, I hope the view is nice.......

was it a 1 bed? if so then i agree, i think the OP is over paying. i know nicer areas 1 beds new build go for similar price.

Pupnik

It’s an eye-watering amount for a one bed flat, however I expect there will always be a shortage of properties in central London so I wouldn’t worry about it too much, even if property prices were to come down for a bit they would start going up again eventually – that’s just how things are, so you could stay there or rent it out until it increases in value. Overpay as much as you can when you can afford it though as that will make a big difference later on as it will reduce your interest and increase your equity.

lincroft1710

Oh dear you've bought in London

Oh dear you've bought in Stoke Newington

Oh dear you've bought a new build

Oh dear you've bought a 1 bed flat

Oh dear you've overpaid

Well somebody has to buy in London

Well somebody has to buy in Stoke Newington

Well somebody has to buy a new build

Well somebody has to buy a 1 bed flat

Well nearly everybody claims they've overpaid.

Just concentrate on making this your home. Yes your home.

Nearly 20 years ago a friend bought a 1 bed ex council flat in Zone 2/3 for the same price as I paid for a 3 bed semi in the provinces. My property has increased its value fourfold, theirs sixfold.

economic

lincroft1710 wrote: »

Oh dear you've bought in London

Oh dear you've bought in Stoke Newington

Oh dear you've bought a new build

Oh dear you've bought a 1 bed flat

Oh dear you've overpaid

Well somebody has to buy in London

Well somebody has to buy in Stoke Newington

Well somebody has to buy a new build

Well somebody has to buy a 1 bed flat

Well nearly everybody claims they've overpaid.

Just concentrate on making this your home. Yes your home.

Nearly 20 years ago a friend bought a 1 bed ex council flat in Zone 2/3 for the same price as I paid for a 3 bed semi in the provinces. My property has increased its value fourfold, theirs sixfold.

does not mean it will continue. also its an ex-council which were always cheaper anyway.

the OP bought a new build in an average area in zone 2. also he bought a 1 bed. in terms of invesment i would never have bought it, there are better investments in london if i were buying another. of course if the OP bought it as a home then fine its a perfecttly reasonable purchase.