FTB London to new build or not to new build .....

MrChrisLondon

Hey All,

First time buyers who have grown up in London and really don’t want to move to far away .... but may have too. Ideally West or North London. 2 beds needed.

We have access to 50k deposit and mortgage in principal for 320k so we are looking at:

Option 1 look for a place on open market for 370k.
(Various options above and around north circular. Palmers Green something we have visited as an example)

Option 2 use the equity loan to target a new build in a regenerating area budget jumps up to £550k.
(Acton, Harlesden, Ealing, Harrow seem to have options for us)

Appreciate any advise thoughts on this as me and my wife have been going back and forth for ages on what to do. We open to moving to somewhere like Watford if it seems sensible.

On paper I would prefer a new build but I am worried about:
- selling a new build in 5 or so years when government repayments start, there may be a market flooded of similar New builds so we could loose money.
- uncertainty with actual Brexit affecting house prices again.

Thanks to anyone who has the time to add to my thought and any advice !

Chris x

Out,_Vile_Jelly

Just my opinion, but I would avoid a new build in London as they seem massively overpriced (for size, quality and resale value) in an uncertain market. "Regenerating area" largely means "!!!!!!-hole" of course.

ReadingTim

Funny you should mention Acton. I grew up on a road which backed onto the South Acton estate, so the regeneration of the area into "Acton Gardens" is nothing short of miraculous.

However, grim as the old tower blocks were, I can't help wonder how the new buildings will fare, and the extent to which we're simply building the slums of tomorrow, as the main problem of the estate wasn't the buildings but the people in them.

Dunno what your timescales for living in this property are likely to be, but in the short to medium term, a new build in a regenerating area is more risky than an existing property in a regenerating area, which itself is riskier than an existing property in an established area....

MrChrisLondon

No real rush. Just renting at the moment on a 1 month rolling contract.

Our main aim is to hopefully own within zone 3 near an underground station.

The equity loan is very tempting as it makes the above feasible but wary these so called ‘luxury’ houses are inflated. I don’t care the property has Bosh appliances and sonos.

Wish the government would help me me with normal houses !

westernpromise

The advantage of new builds is they should need nothing doing to them. The disadvantage is that if it were a good idea to have houses in that location there'd already be houses in that location.

Personally I'd buy whatever I could in an area that's handy for shops and transport and is similar to other properties nearby. If buying an older property look carefully at the condition of kitchens, bathrooms, windows and the roof, as these are expensive to repair.

You don't want to be in a spanking new development in a horrible area - you'll be depressed every time you go out and it won't look as good when you sell it second hand as it does now off-plan.

MrChrisLondon

Has anyone been in a new build within London for more than a couple of years to shed some light on their experience ?