Why are people buying new builds.

RelievedSheff

In your dreams perhaps.

How long have you been predicting this big crash now!

For as long as we dont have enough housing in this country, there will always be demand which means there will not be the huge drops in prices you would like to see.

AdrianC

Crashy_Time wrote: »

Eventually the silliness (for the buyer not the banker) of massive debt for a basic living space just becomes too obvious to be sustainable.

https://www.homesandproperty.co.uk/property-news/buying/new-homes/ikea-affordable-homes-furniture-giant-branching-out-into-building-houses-in-the-uk-and-they-re-a131646.html

Oh, look. Here's an almost identical UK launch of BoKlok... back in 2006...
https://www.theguardian.com/society/2006/dec/01/communities.money

GDB2222

RelievedSheff wrote: »

In your dreams perhaps.

How long have you been predicting this big crash now!

For as long as we dont have enough housing in this country, there will always be demand which means there will not be the huge drops in prices you would like to see.

Demand depends a great deal on affordability. If you look back 30 years ago, interest rates reached around 15%. That caused a major reduction in demand, and prices dropped around 30-50% (depending on the type of property). There was the same shortage of property then as now.

Since then, interest rates have generally been dropping, which has made property more affordable, despite borrowing higher multiples of earnings.

One scenario for prices dropping will be interest rates rising significantly from current levels.

ThePants999

AdrianC wrote: »

Given that we're now 29 years and six PMs after she left office, you have to wonder at what point people will change that particular tune...

My wife still grumbles about Henry VIII whenever she comes across the ruins of a monastery - should she be finding someone else to blame? I'm not anti-Maggie, but when you do something, it doesn't become someone else's fault just because of the passage of time.

Crashy_Time

RelievedSheff wrote: »

In your dreams perhaps.

How long have you been predicting this big crash now!

For as long as we dont have enough housing in this country, there will always be demand which means there will not be the huge drops in prices you would like to see.

Very risky assumption to make when borrowing big multiples of your income on a very illiquid asset IMO

https://www.spectator.co.uk/2018/02/there-is-no-housing-crisis-it-would-be-easier-if-there-were/

Connor_r

jamie_128 wrote: »

Just a general wondering more than criticising anyone who does.

Im currently selling my new build home i bought a while ago on the helptobuy scheme. Its the smallest house that was available on the development and it was solely as i was single at the time. However, im now buying with my partner, we have been to look at every new build development in our area, theres a good 6 we looked at.

I am absolutely shocked at the complete lack of space you get in them, i can see the appeal for a single person buying a 2 bedroom house, but cant for the life of me understand why anyone is buying the bigger detatched houses for the prices when you can get so much more for your money, all the new builds ive seen cant fit a king size bed in and have zero downstairs storage cupboards. Also generally have a shared driveway.

Ive found a lot of new build estates are massively overpriced, gardens are always overlooked by tons of other houses, quality is pretty poor, cardboard for skirting boards anyone? And ive found you end up getting people who couldent usually afford to buy that house living in the street which without sounding snobby, generally brings down the street as a whole as they are generally less likely to put any effort into keeping thier property looking nice.

We were shocked at how small some of them were and its only because they use tiny furniture that they even look an okay size.

This has always been a question for me.
But that doesn't change the way most people pay for big houses now, however old they may be.
So there is better money in selling such structures.
In addition to the buyer the seller also focuses on these homes.
It is as if attention to newly built homes is not as it should be.

Crashy_Time

AdrianC wrote: »

Oh, look. Here's an almost identical UK launch of BoKlok... back in 2006...
https://www.theguardian.com/society/2006/dec/01/communities.money

Doesn`t change my original point though.

shortcrust

I’m reminded of threads on here where people have been disgusted that everyone doesn’t replace all the carpets when the take over a house. Filled with horror about the thought of other people’s skin. I guess such folk would be new build fans.

(That’s just made me remember that I found a toenail clipping in my bedroom the other day that wasn’t mine. I moved in three years ago...:o)

Barny1979

shortcrust wrote: »

(That’s just made me remember that I found a toenail clipping in my bedroom the other day that wasn’t mine. I moved in three years ago...:o)

Hopefully you realised before you put it in your mouth