Overpaid on new build flat

smem18

Just over a year ago we bought a new build one bed flat in Borehamwood for £320k. I do really like our flat however I think we did rush the decision as we were nervous, panicky first time buyers (the first place we tried to buy we got gazumped on and that made us really twitchy, so a new build felt sensible at the time).

I’ve since realised that we really did over pay for the flat a) relative to prices for other flats in the area (even other new builds) and b) relative to others in the block (a year later the person above us bought a brand new flat identical to ours for £20k less!)

We had a 10% deposit and have been overpaying the mortgage fairly considerably from the beginning (extra £550 a month), so at least the debt is being paid down.

I don’t really know what I want anybody to say on here, I honestly just wanted somewhere to vent because I dont really want to admit to friends or family I think we made a big mistake. I am just now kicking myself because this was only meant to be a starter home but I now feel trapped here until the mortgage is paid down considerably (I reckon another 3 years). I turn 30 next year and I am scared of leaving children too late, but we really don’t want to think about kids whilst living in a 1 bed. I suppose you live and learn. Just feeling a bit down about it all. If any one started in a similar way and everything turned out ok for them, it would be nice to hear.

AFF8879

Don’t worry about the kids thing. I find it crazy how so many people panic and feel the need to immediately move into a huge detached house at the first signs of pregnancy! Babies are incredibly adaptable and would happily sleep in a drawer, and whilst sharing a bedroom with your child is not ideal it’s not going to kill them (in fact it would probably be fine for at least a few years).

As for overpaying well, you live you learn I suppose. I guess it depends how long you feel you can put up staying there, hopefully my comment above buys you a few more years

dimbo61

Sounds like your not happy with the flat ?
The market have taken a small downturn at the moment and more so in the South.
You have a home ! Your own front door ��
A HUGE well done on putting down a 10% deposit and overpaying every month
Please keep this mindset going.
Check your mortgage rate against savings rates and enjoy your home

Gwendo40

I really wouldn't beat yourself up too much over it, there are lots of people naively overpaying for property after feeling pressured (from people with a vested interest in house prices remaining high and rising) to ''buy at any cost''

At least you're in a position to overpay on your mortgage.

Some of the more over leveraged numpties are already worrying about the interest rate rise on their ''Help To Debt'' government loans.

lookstraightahead

This is part and parcel of owning property. The value goes up and down.

AnotherJoe

If house prices have fallen in your area, then when you come to buy your bigger place, that also will have fallen and so you will actually be better off.
For example, if properties have fallen by 10% then that's 30k off the £300k property you sell but £50k off the £500k house you buy.
That's one thing. The second is, losing out on a newbuild. Yep. Unless house price inflation is rampant that's always going to happen and be noticeable. You'll just have to suck it up. As long as you have enough equity in your current property to buy your next, it's still doable.
P.s. don't buy a newbuild second time round !

[Deleted User]

Your ovaries don't stop working after your reach 30 you know. Lots of women have children in their mid to late 30's and even into their 40's. In fact I believe it is becoming more common to have kids later.

Think you just need to calm down a bit.

The fact you are overpaying your mortgage by 550 a month tells me you can afford something bigger anyway. If your desperate to move then you may just have to take the loss and move on.

Sometimes it does pay to skip the starter home and just go straight for a 2 or 3 bed house if you can afford it.

mdori003

First of all congratulations on getting on the housing ladder.

I think you are being a bit hard on yourself tbh, you've got a property and are making significant overpayments as well as (based on the size you borrowed) earning good money at a young age (I'm the same age so I insist it is a young age!). Keep overpaying and saving - I'm guessing you have a decent rate of interest.

You are on the ladder and would likely be worrying that you were taking a risk if you hadnt bought when you did, it's just human nature. You will be in a good position if and when you want kids, and as others have said you have time on your side there (and babies tend to give some warning of when they are going to come anyway). It's totally natural to feel this way but objectively you are in a good place.

AdrianC

smem18 wrote: »

Just over a year ago we bought a new build one bed flat
...

I am just now kicking myself because this was only meant to be a starter home but I now feel trapped here until the mortgage is paid down considerably (I reckon another 3 years). I turn 30 next year and I am scared of leaving children too late, but we really don’t want to think about kids whilst living in a 1 bed.

When you say "starter home", were you really thinking about selling and buying elsewhere within a year or so? Even ignoring the new-build-premium, that's never a particularly sensible move, simply because of the timescales and especially costs of selling and buying. Selling and buying somewhere else around the same price is going to cost you six grand just in SDLT. Add in all the other costs, and you can easily hit ten grand.

New-builds always have and always will carry a pricing premium, simply because of the fact they are new. There's the "shiny, shiny" factor, there's the "pick the finish" factor, and then there's the buyer incentives (especially HtB at this end of the market).

If others in your development paid less, then that probably means demand was not high. Delaying the purchase meant they paid less, sure, but they risked not being able to buy there at all.

smem18

Wow thanks everyone. Your messages have cheered me up a lot. Yes we both have good jobs which we love, hence no kids yet! We decided to buy well within our means and overpay, in the hopes that we could move up the property ladder significantly in a few years (we took a 5 year fixed mortgage on a great interest rate). Even if we could move right now we wouldn’t want to just yet - I was thinking in the next 3 years as our 5 year fix comes to an end. We have another £16k saved up already with the thinking that this will pay future stamp duty.

I suppose it’s just that all my friends are having babies and telling me not to leave it too late and it’s made me panic abit because that doesn’t really feel like an option in this flat. I’d prefer to have children around 33-35 as I’m so into my career and it’s really taking off now, but I do just get worried about waiting too long.

smem18

smem18 wrote: »

Wow thanks everyone. Your messages have cheered me up a lot. Yes we both have good jobs which we love, hence no kids yet! We decided to buy well within our means and overpay, in the hopes that we could move up the property ladder significantly in a few years (we took a 5 year fixed mortgage on a great interest rate). Even if we could move right now we wouldn’t want to just yet - I was thinking in the next 3 years as our 5 year fix comes to an end. We have another £16k saved up already with the thinking that this will pay future stamp duty.

I suppose it’s just that all my friends are having babies and telling me not to leave it too late and it’s made me panic abit because that doesn’t really feel like an option in this flat. I’d prefer to have children around 33-35 as I’m so into my career and it’s really taking off now, but I do just get worried about waiting too long.

(And I know there are penalties for moving before the end of the 5 year fix. Just so you all know we’ve considered that).