Help to Buy 5% (New Build) vs 10% Deposit

Bensafc7

I'm wondering what peoples recommendations are for whats better?

I've started saving a deposit and started researching the different schemes, however I've had a lot of advice to stay away from new builds as people seem to have a lot of issues with them (built cheaply I've been told) people on the internet seem to be saying the same regarding the HTB scheme ... built on cheap land using cheap materials in cheap locations.

Wondering if its better just to save for a 10% mortgage and have more choice (not having to go for a new build)

At the moment i'm renting and I feel as if i'm just throwing away money, looking at 1/2 beds for around £100k. Wondering if anyone has been in my position?

Thank you in advance

bexybest

I bought a new build house, lived in it for three years and sold it for a loss (circa 5% reduction). I used the Help To Buy scheme as it was easiest at the time, and I was very happy with it, although not sure I would have felt the same when the repayments started after 5 years. I believe the staircasing option is fairly laborious (as was redeeming it when I sold) but also unrealistic and many won't have the discipline to save 10% of their property value in a relatively short timescale.

Now I'm buying again but an older property, and I'd probably never buy a new build again - the main reasons being - close proximity to neighbours, poor parking provision and small rooms and garden. Mine was a Persimmon house and I felt it was well built with few snags, but some of my neighbours resorted to putting signs in their windows to complain about them, so clearly not everyone has the same positive experience as me. But on the other hand they are perfect to move straight into, they cost little on energy and always feel clean & new.

Nobody can tell you what will suit you - it depends on your priorities and financial/personal plans are. But happy to answer any specific questions.

nik_k

Bensafc7 wrote: »

I'm wondering what peoples recommendations are for whats better?

I've started saving a deposit and started researching the different schemes, however I've had a lot of advice to stay away from new builds as people seem to have a lot of issues with them (built cheaply I've been told) people on the internet seem to be saying the same regarding the HTB scheme ... built on cheap land using cheap materials in cheap locations.

Wondering if its better just to save for a 10% mortgage and have more choice (not having to go for a new build)

At the moment i'm renting and I feel as if i'm just throwing away money, looking at 1/2 beds for around £100k. Wondering if anyone has been in my position?

Thank you in advance

TBH, I think the advice you've gotten is incorrect, but I might be biased in that I'm currently buying a new build!

Whereas it might be argued that new builds aren't built to the same robustness as Victorian builds, they're hardly houses of cards. They still get built to exacting standards, and are largely problem-free from a build perspective.

Built on cheap land in cheap locations is also a bit of a stupid argument. Whilst typically they're not gonna be built on the same land as pre-existing houses (except in demolition environments etc), the land they're built on is often highly-priced, and in prime locations. I'll accept though that, in some parts, there seems to be an odd tendency to build on flood plains. However, avoid these minority of developments, and you'd be fine.

There's nothing inherently wrong with new builds, you just need to exercise buyer's caution to ensure that you pick the right developer, on the right development, etc etc. You might want to avoid Persimmon though, what with all the negative things said about them lol! IMHO, it would take a brave person to buy a Persimmon house these days...

sal_III

There are probably as many people suffering from issues with their "old" homes as with "new builds". Just as there are good and poor quality "old" homes, there are good and poor quality new builds. I know because I'm living in one such.

Regarding the size - the average 2 bed flat in my development is about 900sqft. The average size of the "old" 2-bed terraced houses/flats in the area is about 700ft

The point is you rarely hear people talking about the good ones, as it usually the complaints that enter the public forums.

RelievedSheff

We bought a new build last April and have to say we are really very happy with the quality and the location. We have parking for three cars on the drive plus a garage, our energy bills are stupidly low and we got a really very good deal on the plot we bought.

We didn't use help to buy we decided to part exchange our old property against the new one which gave us a 10% deposit but we had considered selling our existing property and then using help to buy to get a more expensive larger property on the same development.

In many ways I'm glad we decided to opt for the more modest property with the 10% deposit and didn't use help to buy.

AdrianC

sal_III wrote: »

There are probably as many people suffering from issues with their "old" homes as with "new builds".

Different problem types, of course.

New build - you get construction issues and niggles.
"Old" - you get maintenance, lack-of-maintenance, previous-owner bodges.