New Build vs Old house needing work - advice needed

KQM

I will try and keep it short but after some advice on our options. 

My husband and I are first time buyers.  We are currently renting from my parents and are looking to buy in the next 6-12 months.  The house we are renting (3 bed terrace) is valued at approx. £180k and we have been here for 5 years so its very much ours and it would make sense to buy it, but it’s not our dream home.   It is an old local authority house so big rooms and even bigger garden but if we were to stay here we would want to extend to make the current bathroom bigger (its tiny) plus in need of an upgrade, include storage as there is no storage cupboards at all and ideally put in a downstairs toilet and utility room.  We would also need to put in a driveway as parking is becoming a nightmare with only on street parking.

There are new builds popping up in our area.  One particular build (4 bed detached) which we like is due to finish Feb – Mar.  This timing would line up nicely with the First Home Fund in which we could get an equity loan of up to £25k.  The house we like is £355k so much more expensive plus we would need to pay stamp duty.

We are really stuck going round in circles on this one….the new build is the design we want and has all the extras we really would like such as utility, en-suite, study, downstairs wc, driveway and garage but I expect will come with standard fittings and we will need to pay for all extras.  The mortgage will be more expensive and leave us little extra a month to make upgrades.  This will be an issue for a few years until cars are paid off.

The old house needs a lot of work but as it’s part of my family history I do have an emotional connection to it.  The mortgage is significantly cheaper but we would need to spend a lot of money on the house to make it want we want.

We have also considered buying the old house, not doing any work and then selling in a few years.  

Has anyone been in a similar situation?  Any advice on either buying a new build, extending an older house or buying a home knowing its not ideal and you will move in 2-5 years?

 Any advice is hugely apprenticed.

babyblade41

old over new every time... especially if their is plenty of room to extend 

Doozergirl

You're talking about one house being twice the price of the other!   That's a lot of modernisation work paid for.  I hope the 4 bed is spectacular for the difference! 

Is this 4 bed detached really a dream home if you haven't seen the actual house on its plot?  Or do you just like the showhome?  There's always complaints on here about new houses not being quite what the buyers thought they would be.  I'm sure many, many people are happy, but you have the benefit of 5 years in this other house to know exactly what is wrong and right with it.   If you have imagination, I suspect you would be better off in the older house and making it exactly what you want, rather than paying developer premium for bog standard fittings and even more for upgrades.  Happiness comes from inside, not from owning a new build house.  

How is an outside tap, for example, a luxury?  Do they still charge for those?! 

AdrianC

Let's summarise your basic choice...

£180k to buy your current rented 3-bed terrace. Zero moving costs. Some maintenance/improving/extending. Want to install drop kerb.

£355k to buy a new-build 4-bed detached. Instant "new-build-premium" drop.

Why are these the only two options?
If you're happy with a 3-bed terrace, then why not look at other ones?
If you want a 4-bed detached and can afford £355k (maybe less if you ignore the new-build-specific bribes incentives which need repaying anyway), then what else non-new-build is on the market for that?

Chilli6

I wouldn't expect to get your dream home as a ftb. Hopefully in the future you would look to move to somewhere like that. 
I had a new build as my first home and did love it, only had to add flooring and sort the garden, warm and economical and as mine was one of 10 built by a local builder it was built well.
Im now buying a 1960s semi that has hardly been touched since it was built. I prefer the size to the similar new builds and it has much more space around it rather than being crammed in.
You're looking at two very different options so perhaps go and view various houses in your price range? I found it helped me know what I did and didn't want and my initial list of wants changed quite a bit

KQM

thank you everyone for your replies.  You have provided the insight we needed.  We were drawn to the fresh, straight lines and walls of the new build and the assumed lack of initial maintenance.  We have had a number of issues recently from water leaks from old pipes and some maintenance to the roof recently which needs to be replaced in the not too distance future.  However, reading reviews it seems the reality of the new home isn't always as good as it seems. 

iwb100

This is a false choice. You're comparing a new build 4 bed detached with a 3 bed terrace - there is a lot in between those two as the relative prices show. I'd firstly have a good look at the market and arrange too view some properties - HOWEVER, decide what your budget is first. Not what you can borrow, but what you are comfortable being able to pay a month (and add some on top in case interest rates should rise) and then look at what houses are available. From doing that you will be able to decide whether you want to stay at yours, or buy a 'new' house or an actual new build.

What I'd say is this - whilst technically upgrading a cheaper property is a money saving (assuming its less than buying the other house)  - it requires cash upfront - whereas you could move into a 3 bed semi with new bathroom and drive and whatever - and whilst it might cost more - you're not having to spend cash up front and in essence putting your new bathroom and driveway onto your mortgage. So think about that a bit - do you have the cash to do up a house - or are you better off buying something needing less upfront cash investment but a larger mortgage?

Before you decide this you need to know what your real set of options are, how much they cost - and what the benefits and drawbacks to each are. I'd say as FTB - don't play it too safe just to get a house - otherwise you'll find you want to move again too soon. Equally don't overstretch and leave yourselves constantly chasing your tails or overly worried about job security. Find the balance - the aim of buying a home IMHO should be trying to move as few times as possible - so buy one that you know you'll be happy in for a while and think about 'would I be happy here with new additions' (if that is at all a possibility)!

FreeBear

New build = tiny garden.

Looked at the new builds round here, and looked at the back gardens. Most of them are smaller than my front garden !

If you are planning on children, having a large garden for them to run around in will be a real asset. Put a shed at the end of the garden, and they would be less likely to be underfoot in the summer months.

One advantage of where you are at the moment - You know what the neighbours are like. A new house (new build or old) would mean getting to know people all over again.

iwb100

FreeBear said:

New build = tiny garden.

Looked at the new builds round here, and looked at the back gardens. Most of them are smaller than my front garden !

If you are planning on children, having a large garden for them to run around in will be a real asset. Put a shed at the end of the garden, and they would be less likely to be underfoot in the summer months.

One advantage of where you are at the moment - You know what the neighbours are like. A new house (new build or old) would mean getting to know people all over again.

In many cases that is a good reason to move!

RelievedSheff

We moved to a new build 3 bed detached last year and absolutely love it. The house is designed around modern living, the room sizes are good for the size of house and the running costs and maintenance costs are minimal. We got a lovely corner plot on a nice part of the estate with a very private walled garden which isn't huge but it is plenty big enough for what we need and want.

We have previously lived in a rented large Victorian semi detached villa which was a nightmare to heat and never ending repair work and our last house which we bought was a 1930's two bed semi with tissue paper walls and zero sound insulation to the party wall.

We had always been quite wary of new builds but actually since living in this one if we ever decide to move, which we don't plan to do, then it will certainly be another new build.

You are looking at opposite ends of the spectrum with regards pricing though. There must surely be something in the middle ground?

HanPop

I have lived in 2 new builds and loved them both. Both had good sized gardens and not overlooked, a rarity on new build estates but not impossible. Both also very good value for money too. However I will add that I spent a lot of time going to every new build estate in my area and knew exactly what I could get for my money and compared it to older builds too. My current new build was already built so we could already see the garden etc which I have to say most people are shocked at the size as they imagine all new build gardens are tiny. Are there not any other houses new or old that are cheaper than the new build you were looking at that would be suitable?