New build homes... the catch

kgreen94

Hello all,

Apologies if this has previously been answered but I just want some help! Me and my partner (23) are looking to save for a deposit for our first home together.

We are looking to save 5% for a new build property and take advantage of the help to buy isa. However, question 1: why are new build homes soooo expensive
and following on from that we will need a bigger mortgage as we are both on 18-19k each therefore won't be able to afford a mortgage on a new build

Basically how does it work out as currently i don't think the new build scheme can benefit us?

Thanks!

HampshireH

Why specifically do you want to buy a new build?

What's wrong with other lived in homes?

armchaireconomist

1. You can open and use a HTB ISA (see lifetime ISA) on any home, doesn't have to be new build. The 20% government LOAN (note: loan. You have to pay it back) is the only part which applies only to new builds.


2. Why specifically a new build?

brit1234

Modern new builds are small dimensions, overvalued and usally poor quality.

Better money is with an older and cheaper property. You can always gut it if you want the modern features.

goodwithsaving

My suggestion? Save longer and don't go in with 5%. If you can't afford a mortgage on a new build, then don't buy a new build....
They are at a premium because they're new, never lived in. I wouldn't buy one myself.

ceb1995

We couldn't go for a new build as we didn't meet the affordable homes criteria in our area being currently childless (met all the other criteria though).
It ll need some work doing to it in time but we re in the process of buying a bigger 1970s house than we could have ever bought as a new build and managed to get a 95% ltv mortgage(our household income is 30k including DHs average bonuses). Also buying new makes it unlikely that you could ever add any value to the house whereas there's possibility there when it's been lived in so unless it's your only option to afford a home I wouldn't go for it personally.

teddysmum

Older houses usually have more garden and a garage big enough to park a car with room to get out. New estates also seem to have parking problems for visitors as road spaces/bays are limited. (One near us has double yellow lines, allowing no road parking at all and each house has a tiny garage, with drive parking for one car.

moneyistooshorttomention

I may be being unduly cynical - but I'd got the impression this sort of scheme is actually really for builders benefit (ie they get the benefit of this money by charging more for the house in the first place).

Feel free to correct me if I'm wrong on that one....

NineDeuce

Why do people apologise for putting posts that might have been on before?

Aylesbury_Duck

I always took the view that with new builds, part of the price is a premium to cover the builder's glossy marketing brochures, placards, showhome reception, etc. As others have said, you often get much better value from an older house.

tykesi

kgreen94 wrote: »

However, question 1: why are new build homes soooo expensive

Because there are endless gullible people who want shiny new (small, poorly built) houses over something that someone has already lived in (but is built properly on a decent sized plot and much bigger than current equivalent new builds).

Supply and demand.