New bulid!!! What to do?

dawsonio

Hi,

I am currently in the process of buying a new build (i know, i know) its a 3 bedroom semi and will cost me £101,995 once the 5% builders discount is taken off.

We put the reservation fee £500 down in August and the house is just starting to be built, should be ready around late December. I am expecting the documents through to sign for exchange tomorrow but reading all these stories dont want be be ripped off.

I really like the house and its in my home town so thats handy however they dont seem to be selling very well at all i think its mainly due to its location.

What would you do in my situation? everything is in place ready to sign but should i push for more discount and freebies? All i am getting is 5% deposit paid, no shower, no carpets etc, these are all extra.

My second question is i got the mortgage sorted for this around mid september when mortgage rates where all over the place and have accepted the offer. However now the mortgage rates (fixed) seems to have settled i could probablies get a better deal. Am i still tied to the original lender even though the mortgage has not started yet, or could i change?


Any advise appreciated

Andy

clutton_2

you can still pull out but you would lose your £550 - what is the location like? are you buying it to live in or rent out ?

dawsonio

I like the location its where i grew up, its in Co. Durham. Me and my wife would be buying it to live in. We really like it but dont fancy geting into any negative equity situations.

epz_2

only real way to avoid negative equity at the moment is to buy a total wreck and do it up yourself but who really cares, unless you plan on selling up and downsizing in the next 5 years then it doesnt really matter.

i dont like new builds cause they tend to be in dodgy locations, be tiny and use poor materials, the first 2 reasons are by far the most important though.

odds are a new build will drop or remain static in value as the shiny newness and builders promotions wear off but 100k for a 3 bed home isnt really a lot of money, say £470 interest (aka renting from the bank).

most of the new builds that are really going to get spanked are the 2 bed "luxury apartments", there are some dodgy areas in my home town (glasgow) selling some pretty tiny flats for £140k+ while its possible to buy massive tenements for £40k less.

these are the examples of stupid buyers that will really get spanked, assuming you know the area then why not, but check what other places are going for, you might be able to pick up a deal on somewhere else if the market is as slow as you think.

dawsonio

epz wrote: »

only real way to avoid negative equity at the moment is to buy a total wreck and do it up yourself but who really cares, unless you plan on selling up and downsizing in the next 5 years then it doesnt really matter.

i dont like new builds cause they tend to be in dodgy locations, be tiny and use poor materials, the first 2 reasons are by far the most important though.

odds are a new build will drop or remain static in value as the shiny newness and builders promotions wear off but 100k for a 3 bed home isnt really a lot of money, say £470 interest (aka renting from the bank).

most of the new builds that are really going to get spanked are the 2 bed "luxury apartments", there are some dodgy areas in my home town (glasgow) selling some pretty tiny flats for £140k+ while its possible to buy massive tenements for £40k less.

these are the examples of stupid buyers that will really get spanked, assuming you know the area then why not, but check what other places are going for, you might be able to pick up a deal on somewhere else if the market is as slow as you think.

Thanks for that, puts my mind to rest a little more. The actual physical location of the house is beautiful with views of countryside for miles and miles, the town just has a bad reputation for its adverse weather conditions during the winter with it being almost 2,000 feet above sea level.

I suppose if prices did crash then it wouldnt really matter to much as the next level of the ladder would have crashed too so still possible to move up.

epz_2

if you really want to put your mind at rest think about it like this, odds are it will take 3-5 years for any correction to take place and 30% drop is about the worst realistic predictions.

so if you fancy gambling on saving the difference between say 30k and 5 years rent (plus moving costs, hassle, and personal happiness) which i would bet wouldnt be that much then fair play but sometimes its worth taking the hit just cause you will feel more secure.

CYBERCIDERSAVER

New builds aren't always snapped up...


http://www.rightmove.co.uk/viewdetails-9440523.rsp?pa_n=1&tr_t=buy

These have been on the market for at least 6 months.
Price has come down 5 grand.
Love the new EA they've got. In the local paper it said "Hurry. Only 3 LEFT!!!!!"
oh no.... oh hang on they only built 5!!!!!!!!!!!!!

Maybe a subtle enquiry about a reduction might be a good idea. I expect they are waiting for you to complete so they can reduce the price on the rest of them.....

BlondeHeadOn

dawsonio wrote: »

The actual physical location of the house is beautiful with views of countryside for miles and miles, the town just has a bad reputation for its adverse weather conditions during the winter with it being almost 2,000 feet above sea level.

At least if it's 2,000 feet above sea level it's not liable to flood - 'whatever the weather'....