buying a new build - can we sell our deposit

annette_tr9

we are currently in the middle of buying a new build house (which so far has taken two years). We have paid a 5% deposit.

Because it's taken so long to build (!!) the house is now worth £20k more than we are paying for it. If we wanted to buy another house now can we sell our deposit for more than we put down??

does that make sense!!!

meanmachine_2

No. You don't own the house. You don't own a "share" of it. You've paid a deposit.

Besides, how do you know that the house is worth more? Is it on the market yet?

This is why I personally wouldn't touch new built with a barge pole. You don't actually know what its market value is, only what the developer has asked you to pay, and they're kinda biassed, aren't they?

annette_tr9

i wish we hadn't bought a new build now!! Two years we have been homeless!!!

Anyway, some people pulled out and he resold them for 20k more, so i guess that's what they are worth now!!

meanmachine_2

I'm sorry, I don't have the expert knowledge to help you on this one.

Any takers?

Off-plan is always a risk. Sometimes it pays off, sometimes it doesn't.

Why are these properties taking so long to build? Has the developer run out of cash?

loanranger_4

Please refer to your contract with the developer whether you can do a 'flip sale', i.e. sell the offplan property pre-completion.

annette_tr9

they are taking so long because they didn't have planning permission for the drainage.

thanks loanranger, i will check our contracts!!