Help - mid new build first time purchase

RelievedSheff

You finding it offensive isn't really going to bother the developer. They are in the business to make money.

You either buy the property or you don't. It won't really bother them they will just remarket it and, eventually, get another buyer for it.

robtam

RelievedSheff said:

You finding it offensive isn't really going to bother the developer. They are in the business to make money.

You either buy the property or you don't. It won't really bother them they will just remarket it and, eventually, get another buyer for it.

Totally understand.
However, in such a large sale - I think it’s important to have good relationships. Fair enough they don’t want to drop the price but don’t make it out that I’m the only one who is nervous and pressure me into exchanging - before the surveyors report is back .... it’s not happening - they should crack on and sell the property if they want ....

[Deleted User]

Its all smoke and daggers. They are expert negotiators so they play subliminal mind games. If they say it enough times, they hope others would believe it! 

I think the most risky in any housing crash are the one bedroom flats. They take the hardest hit, because people often “have” to move due to growing families etc. My partner bought a new build one bed in 2007 for £157,000. He had to sell it in 2012 due to a second baby on the way ( now my stepson ).  They sold for £93,000 ! So it lost over 40% of its value. A family member stepped in to help them move at the time. 

If prices fall by even 5% you are in negative equity and will not be able to move or remortgage. Valuations appear to be coming back very much under value lately.  Plus the HTB price enhancement plus the new build premium. 

Its no one elses money or risk on this website. Its yours only. Some advise proceeding because they are proceeding and find comfort that others are too. Others believe its all going to crash! 

I pulled out of a £330k BTL - even though I had a 25% deposit, I was not prepared to pay that for a property when I could wait and “maybe” get one for 10-20% less next year. 

If I had a property to sell - so the cost difference was not a large amount ( as my own property “could reduce too “ ) then the reduction would not be so important. 

However as a first time buyer, buying a one bed flat  - I personally would definitely not proceed at this moment in time because its not unique enough - plenty more flats in the sea later on ! 

OldMusicGuy

robtam said:

What I find most interesting that despite her email - there are subsequent SMS messages sent advising of “unexpected returns to the market” 

I find it all quite offensive unfortunately 

Maybe it's something you can use as a negotiating point. But ultimately, part of your decision about going ahead comes down to how you feel about the whole experience. If you feel that the developers are trying to get one over on you then it's not going to add to the "joy" of buying the place.

robtam

OldMusicGuy said:

robtam said:

What I find most interesting that despite her email - there are subsequent SMS messages sent advising of “unexpected returns to the market” 

I find it all quite offensive unfortunately 

Maybe it's something you can use as a negotiating point. But ultimately, part of your decision about going ahead comes down to how you feel about the whole experience. If you feel that the developers are trying to get one over on you then it's not going to add to the "joy" of buying the place.

Agree I currently feel like exchange effectively is “transfer risk to Rob day” 

RelievedSheff

robtam said:

RelievedSheff said:

You finding it offensive isn't really going to bother the developer. They are in the business to make money.

You either buy the property or you don't. It won't really bother them they will just remarket it and, eventually, get another buyer for it.

Totally understand.
However, in such a large sale - I think it’s important to have good relationships. Fair enough they don’t want to drop the price but don’t make it out that I’m the only one who is nervous and pressure me into exchanging - before the surveyors report is back .... it’s not happening - they should crack on and sell the property if they want ....

I think you are reading too much into it.

They can't resell the property until you inform them that you are no longing going ahead with the sale.

robtam

RelievedSheff said:

robtam said:

RelievedSheff said:

You finding it offensive isn't really going to bother the developer. They are in the business to make money.

You either buy the property or you don't. It won't really bother them they will just remarket it and, eventually, get another buyer for it.

Totally understand.
However, in such a large sale - I think it’s important to have good relationships. Fair enough they don’t want to drop the price but don’t make it out that I’m the only one who is nervous and pressure me into exchanging - before the surveyors report is back .... it’s not happening - they should crack on and sell the property if they want ....

I think you are reading too much into it.

They can't resell the property until you inform them that you are no longing going ahead with the sale.

And I can’t make that decision until I see what the banks valuation survey says.... which is delayed. So any arbitrary deadline will have to take into account the unusual circumstances we are in....

Crashy_Time

robtam said:

OldMusicGuy said:

robtam said:

Just wanted to give everyone an update from the developer after I sent an email trying to reopen negotiations: 

Thanks for sharing, it's interesting to see their response. Any thoughts from your side on what you will do?

Personally think it’s a load of rubbish. Do you believe anyone is paying to reserve flats now??

Going to wait for valuation and hope this segways into negotiations 

Yep, they will just do sales talk until they can`t get away with it anymore IMO.

Crashy_Time

numbercruncher8 said:

That makes sense. I suppose it would be a bit of a culture shock for someone coming from outside London to move to those areas but if you already have local knowledge it makes it a lot easier.

I bought last time before the global financial crisis in 2007.... prices dipped in London for sure in the next couple years but recovered before the Olympics. After the Olympics things went crazy... I think my place doubled from the bottom. However this was fuelled by an incredible fall in interest rates (mortgage went from near £1,500 a month to just over £900 a month in this time) and HTB coming in. BTL also became really popular and fuelled a price rise on flats especially which saw people upgrading. Someone I knew bought a flat at £250k and sold at £350k 18 months later, profit was too good to turn down.

I don't see an equivalent interest rate fall in the next decade, and I think the HTB prop will not be greatly improved (and is slated to end in 2023). All things being stable house prices should just rise at the rate of wage increases (although my own opinion is that real inflation will outstrip wage rises). Over a longer period they will recover; depending on the size of the fall it may take several years in my view.

Some things to consider is that expanding the search area a bit more, there are loads of new builds across East London. Another thing is your own personal circumstances and current deposit. IMO HTB is simply a bet on your own future to buy a nicer property now. If you don't need a new build at all, you could pick up a 1-bed in an older block for maybe half that cost. A friend did this and refurbished it, it's better than some new builds inside. The only thing lacking is the nicer communal areas and perhaps a slight less feeling of security, although as a Londoner you will already have the smarts on what to do.

Anyway good luck and all that, I think you're in a strong position... if you have no immediate need to move right now I think the risks of waiting to see what happens is fairly minimal. 

We are at the opposite end of that spectrum now, as you say, but I feel we are heading into deflation not inflation, seriously thinking of going all in on Premium Bonds again.

Sncjw

You won’t usually see the banks valuation survey. They will just say yes or no to the amount you have requested.