New build flat near railway, good?

humptydumptybits

pattypan4 wrote: »

I am fairly close to a railway line but not a station. I love hearing the trains and there is definitely a therapy attached, don`t know why, maybe the rhythm

I know 3 people who live close to railway lines, two of them close to a station. I love staying with them as like you I find the sound soothing, particularly at night. There aren't many trains between about 10pm and 6 or 7 am, but when I hear them I find it a lovely sound. I'd also like to be walking distance to the station, the world's your oyster.

AnotherJoe

Id be more worried that its a one bedroom. Much less versatile, quickest to lose their value (apart from studios) in a house price drop.

lloydb723

Thanks for your replies. In terms of the freehold/leasehold bit. I think it is as one poster said. the developer has agreed to take charge of the property for the first year to let everyone bed in. Then get everyone together and let us decide. Ie do we want a management company to run it or do it ourselves etc.

In terms of the line. It is indeed the Exmouth line. Trains run both directions about every 30 minutes. The block of flats is only small and is situated right next to the line in St Thomas. I don't believe the property has been discounted much for this though. As an example the ones on the other side of the building away went for £165,000 and this is on for £160,000, as mentioned they are brand new and spacious with everything all done and parking included though. On paper this seems good but like anything it is hard to tell.

Any further advice appreciated. As mentioned I just had a narrow escape with one previously so am pretty keen to move.

gingercordial

I like living near railways (of the low speed type). I find the noise soothing and also they often make great wildlife corridors. A good chance of hearing/spotting owls, bats and the like if that is something you're into!

Someone has already mentioned the possibility of nighttime freight movements which can be very loud compared to daytime trains (I think they have inferior suspension as no passengers so "clank" more, as well as being in an otherwise quiet time). As well as that, consider track maintenance. It might not happen very often but when it does you can expect floodlights, pneumatic drills, diggers and shouting all through the night and usually for several nights on the trot. They do not factor in local residents needing to sleep because the work simply needs to get done and is disruptive to fewer people when done overnight. You will need to put up with it.

It wouldn't put me off but it is something you should be aware of so you are not surprised when the time comes. It could put off future buyers - the fact that you are asking this question means that so will other people when you come to sell.

markin

Look back at other new builds in the area from 3-5 years ago, are the flats selling for more or less than they paid?

In 3 years time when you want to sell it will all be second hand goods, With no HTB VS new builds with HTB

lloydb723

This a real tricky one. For the most part I just need somewhere to live for the next few years, not more than that. I commute to a small town outside so need to have access to the motorway and transport. Plus I would like to remain in the city where things are going on.

The previous flat was ideal for this and the price. However it was very tiny and I had a major relationship breakdown with the freeholders. Also found out that another flat in that building has fallen through, so not just me. This new one is 10x nicer inside and the building itself, with a garden, parking and even bike store. It is just the railway line and whether it will depreciate in value, like I said I only intend this as a nice stopgap. Is it true that new builds depreciate quickly?

lisyloo

I would put the costs of buying into a spreadsheet and compare with renting, where you won’t have legal costs, mortgage costs, furnishings, insurance etc.

Renting might be cheaper and your property could go down in price over the next few years leaving you stuck in negative equity.

I did know someone in the early 90s with 4 kids in a one bed flat.
There’s a family planning issue there also but you might be stuck somewhere you don’t want to be if you get into negative equity and can’t afford to sell.

But I wouldn’t want to be negative so put it in a spreadsheet.

hazyjo

lloydb723 wrote: »

This a real tricky one. For the most part I just need somewhere to live for the next few years, not more than that...
It is just the railway line and whether it will depreciate in value, like I said I only intend this as a nice stopgap. Is it true that new builds depreciate quickly?

It is never advisable to buy for 2-3 years - especially in a static/falling market. If you take into account moving/selling costs, most things are unlikely to increase.

You usually pay a premium for a new build. It's not that they depreciate quicker, it's that you're likely to sell for less once it's 'second-hand'. Not always the case, but seems to be more common than not. Especially if there are other new options nearby.

Property is unpredictable.

I once nearly doubled from £274k to £515k in 3 years (sold after 4 but the last year's prices had been static). Bought a house years ago (2006) for £227,500. Prices had been rocketing and it was quickly worth nearer £300k. A year later, recession hit and prices tumbled. I eventually sold in 2011 for a grand more than I'd paid. And I'd spent loads - new kitchen, new overhead ceiling shower, flooring, new roof, decoration, etc.

Today's market is far nearer that second scenario!

If you're buying again, it may work in your favour as everything else will be more affordable too. If not, I'd prob rent.

eddddy

lloydb723 wrote: »

Thanks for your replies. In terms of the freehold/leasehold bit. I think it is as one poster said. the developer has agreed to take charge of the property for the first year to let everyone bed in. Then get everyone together and let us decide. Ie do we want a management company to run it or do it ourselves etc.

Just to be absolutely clear - you cannot rely on what the developer says (or writes) to you.

The developer can change their mind at any time, and you would have no recourse.

It only becomes legally binding on the developer if it says that in the contract.

So if it's important to you, tell your solicitor to make sure it's in the contract.