Help - mid new build first time purchase

onetimeatponycamp

I'm in a similar position to you. Also not sure to do, so mostly just offering sympathy!

I have a 2 bed flat reserved in the home counties. Lovely flat, but my worry, like yours is that being new build and HTB it is already inflated. I accepted that on the basis that over say 5+ years property prices should increase and therefore make up for the premium I initially paid for it being what it is. A bit like driving a new car of the forecourt, I accepted that for the first couple of years it wouldn't be worth what I'd paid, as by that point it wouldn't be new and on HTB anymore. Now that CV has happened, the risk is much greater. If I'm already paying a premium and then prices drop, then I'm much worse off. If it were my forever home I'd be less worried, but ideally after 5 years or so I'd want to upgrade. I haven't started negotiating yet, the lender I was planning to apply to isn't taking applications at the moment so everything has stalled. The other thing for me though is that my accepted offer was lower than list price - they had clearly not been able to get list price for it. So from the developer's point of view they've already discounted, which I guess means negotiating may be more difficult.

What it boils down to for me, as for you, is that the new build/HTB risk was worth it before CV, but now with CV on top it's a lot more risk. I have to say though, if I were in your position and had over £25k deposit I'd look to buy a £250k property further out. My deposit fund isn't enough for 10% of a property that's commutable to London, so HTB is my only option.

robtam

onetimeatponycamp said:

I'm in a similar position to you. Also not sure to do, so mostly just offering sympathy!

I have a 2 bed flat reserved in the home counties. Lovely flat, but my worry, like yours is that being new build and HTB it is already inflated. I accepted that on the basis that over say 5+ years property prices should increase and therefore make up for the premium I initially paid for it being what it is. A bit like driving a new car of the forecourt, I accepted that for the first couple of years it wouldn't be worth what I'd paid, as by that point it wouldn't be new and on HTB anymore. Now that CV has happened, the risk is much greater. If I'm already paying a premium and then prices drop, then I'm much worse off. If it were my forever home I'd be less worried, but ideally after 5 years or so I'd want to upgrade. I haven't started negotiating yet, the lender I was planning to apply to isn't taking applications at the moment so everything has stalled. The other thing for me though is that my accepted offer was lower than list price - they had clearly not been able to get list price for it. So from the developer's point of view they've already discounted, which I guess means negotiating may be more difficult.

What it boils down to for me, as for you, is that the new build/HTB risk was worth it before CV, but now with CV on top it's a lot more risk. I have to say though, if I were in your position and had over £25k deposit I'd look to buy a £250k property further out. My deposit fund isn't enough for 10% of a property that's commutable to London, so HTB is my only option.

Awful dilemma isn’t it. I have decided only option is to walk or haggle down with surveyors report - but if they don’t play ball I will walk. I won’t allow exchange day to be “transfer over priced property in sinking house prices times to RobTam day”

they have 10+ million of property unsold in this development. That’s got to be a bad feeling 😂

MOPI

Hi, your post is an exact reflection of my situation - in the middle of purchasing a new build, on which the building has temporarily halted due to the Coronavirus (which I totally agree with). However negotiated the price at the back end of last year so had no idea this was on the horizon. Not exchanged yet but wondering if to try and renegotiate the price and whether I should walk away if its a 'No'.

robtam

Unfortunately not really got anywhere. Still awaiting valuation from surveyors on behalf of lender. Was due to be today - but EWS1 form was missing - so that needs to be sent by developers back to the surveyor. 

Although annoying more time to think ...

MOPI

Hi, I came across this webinar yesterday by Savills, containing a very robust analysis of the market and predictions around house prices. It might be useful to inform your decision : https://www.savills.co.uk/research_articles/229130/299336-0

csgohan4

MOPI said:

Hi, I came across this webinar yesterday by Savills, containing a very robust analysis of the market and predictions around house prices. It might be useful to inform your decision : https://www.savills.co.uk/research_articles/229130/299336-0

research by an EA, no thanks
the best answer is via a crystal ball

MOPI

csgohan4 said:

MOPI said:

Hi, I came across this webinar yesterday by Savills, containing a very robust analysis of the market and predictions around house prices. It might be useful to inform your decision : https://www.savills.co.uk/research_articles/229130/299336-0

research by an EA, no thanks
the best answer is via a crystal ball

Agreed - crystal ball would be the only thing that is accurate but for people in our situation all we can do is utilise information/data available to us to make decisions.

[Deleted User]

MOPI said:

Hi, I came across this webinar yesterday by Savills, containing a very robust analysis of the market and predictions around house prices. It might be useful to inform your decision : https://www.savills.co.uk/research_articles/229130/299336-0

I couldnt be bothered to listen but Im guessing as its written by a high end property estate agents, its all fluffy and warm and things will be Aok very soon ! 

No one can say what they think will happen. Last time something like this happened the country went into a depression.  

blue_max_3

I've been watching the market for some months now and have something like 200 properties in a few different areas of the country bookmarked. Some have been reduced a little, but many remain unsold. A small percentage have found buyers.
Obviously, this could be due to the current situation, but I do wonder if the government will do anything to help it along. I've seen a suspension of stamp duty floated as an idea. It would certainly be welcome when spending £500k! 
It will be a dog eat dog world if there is a reduction of asking prices. I can see gazumping making a comeback. Accept an offer and use it to negotiate a higher offer with another buyer in the meantime. The bad old days for sure.
It will be like predicting the bottom of the stock exchange. Go low, but too low and you'll lose out. Paying for surveys and finding someone else has made a better offer. So stressful and wish the whole system was reformed once and for all.