Just bought a new apartment will it gain value?

Rambosmum

Unlikely. New builds drop in value before rising again and I'm assuming that as it's an apartment you won't be able to do much to increase its value. Unless the area sees an upturn generally it's likely in 5 years it'll stay similar.

Grenage

Depending on the size of your deposit, you could end up in negative equity; nobody knows what the market will be like in five years time.

Surrey_EA

While I'm here, has anyone got next week's lottery numbers they can share with me?

25_Years_On

Pixie5740 wrote: »

If only there was a section of the forum dedicated to Debating House Prices and the Economy.....

Which you can't see until you've signed up so easily missed by first time posters. They see a forum on housing, sign up and go to the forum on housing without spotting additional forums have suddenly appeared.

ReadingTim

Surrey_EA wrote: »

While I'm here, has anyone got next week's lottery numbers they can share with me?

Yes - please send half your winnings, in advance, to my Western Union money account, Lagos branch. On cashing the cheque, all will be revealed!

For an additional fee, I can provide the results of horse and dog races.

lookstraightahead

I think new places tend to lose value initially, and property is better as a long term investment. With moving costs, stamp duty etc I would say not. Might be better waiting 10 years.

davidmcn

Rambosmum wrote: »

Unlikely. New builds drop in value before rising again and I'm assuming that as it's an apartment you won't be able to do much to increase its value. Unless the area sees an upturn generally it's likely in 5 years it'll stay similar.

Indeed. In fact, I can point you at flats which are still not worth the prices at they were sold off-plan circa 2007.

JuneBow

I buy, sell and rent out properties and I have never bought a new build.
From what I see, the prices can rise on new builds once the initial release is over, but after that the prices do not rise in line with similar "old" properties.
I would assume the initial rise in price is because people dont want to live on a building site, and then after that once the site is finished, the property is second hand.

Cakeguts

The answer depends on how much more expensive it is compared to a second hand one in the same area.



For example if your new build costs £130k and a similar second hand older property in the same area costs

£100k your new property will lose £30k in value as soon as you live in it. That is because the premium for it being new is £30k. Once you have lived in it and it is no longer new it will become just like any of the other second hand properties in the area. This is why new builds come with a warning that they may lose value when you come to sell.


If you want to guard against the value dropping in this way you need to not buy a new build.



With a new build it is unlikely that you will be able to get enough equity for the deposit on a house in 5 years unless you overpay your mortgage by a large sum every month.

Teamocil

Buy a home to live in.