New build - Market downturn risk?

AdrianC

UnderOffer said:

RelievedSheff said:

Hannimal said:

Also don't listen to Crashy...

But seriously though, only buy a new build if you plan on living there for quite some time. The moment you complete the sale the value of the property goes down. It's not a huge concern if you plan on living there for a few years and perhaps you shouldn't think of your home as an investment that will increase in value. 

We were told that the price of our new build would drop when we bought it. We have just gone through the remortgage application after 2 years in the property and our new lenders surveyor has valued it at 10% over what we paid for it 2 years ago. 

But didn’t you buy the last house on a new build site greatly reduced, as they were desperate to sell? What did your neighbours pay who reserved early, for the same style house as yours and how does that compare to the 10% increase of the value you’ve received? Are you now priced at the value your neighbours paid or perhaps below? 

AKA the runt of the litter, the plot that nobody else wanted to reserve.

RelievedSheff

AdrianC said:

UnderOffer said:

RelievedSheff said:

Hannimal said:

Also don't listen to Crashy...

But seriously though, only buy a new build if you plan on living there for quite some time. The moment you complete the sale the value of the property goes down. It's not a huge concern if you plan on living there for a few years and perhaps you shouldn't think of your home as an investment that will increase in value. 

We were told that the price of our new build would drop when we bought it. We have just gone through the remortgage application after 2 years in the property and our new lenders surveyor has valued it at 10% over what we paid for it 2 years ago. 

But didn’t you buy the last house on a new build site greatly reduced, as they were desperate to sell? What did your neighbours pay who reserved early, for the same style house as yours and how does that compare to the 10% increase of the value you’ve received? Are you now priced at the value your neighbours paid or perhaps below? 

AKA the runt of the litter, the plot that nobody else wanted to reserve.

That's the one

Not sure why though. We have found it to suit us down to the ground. Would have struggled to find a more ideal house for us. It did us a massive favour it being the "runt" that no one wanted.

pinkteapot

tim_london said:

Isn't that flawed logic?  Yes you will lose value if you tried to sell it on day 2 of moving in because the 'new' factor is gone, but after 5 years the property prices in general would have increased.  So you'll still gain, just not as much as if you moved into an old banger where you would have needed money to fix up.

Your username is relevant here... I'm in a part of the north-west where property prices are unchanged in the last 15 years - things are on the market at the same price they were bought for in the early 2000s. 

Swash

pinkteapot said:

tim_london said:

Isn't that flawed logic?  Yes you will lose value if you tried to sell it on day 2 of moving in because the 'new' factor is gone, but after 5 years the property prices in general would have increased.  So you'll still gain, just not as much as if you moved into an old banger where you would have needed money to fix up.

Your username is relevant here... I'm in a part of the north-west where property prices are unchanged in the last 15 years - things are on the market at the same price they were bought for in the early 2000s. 

I'm also in the North West, just sold my house for 40k more than I paid for it 3 years ago. It massively depends on local markets in my opinion.

Crashy_Time

RelievedSheff said:

UnderOffer said:

RelievedSheff said:

UnderOffer said:

RelievedSheff said:

Hannimal said:

Also don't listen to Crashy...

But seriously though, only buy a new build if you plan on living there for quite some time. The moment you complete the sale the value of the property goes down. It's not a huge concern if you plan on living there for a few years and perhaps you shouldn't think of your home as an investment that will increase in value. 

We were told that the price of our new build would drop when we bought it. We have just gone through the remortgage application after 2 years in the property and our new lenders surveyor has valued it at 10% over what we paid for it 2 years ago. 

But didn’t you buy the last house on a new build site greatly reduced, as they were desperate to sell? What did your neighbours pay who reserved early, for the same style house as yours and how does that compare to the 10% increase of the value you’ve received? Are you now priced at the value your neighbours paid or perhaps below? 

We did get a very good deal on our plot to be fair.

Similar plots of the same house type were sold for £225k, £230k and £235k where as we paid £210k for ours. Ours has just been valued at £235k for the lenders purposes. So it does put it at the same price as the highest purchase priced plot but higher than the other two.

It is all somewhat irrelevant mind you as the house is not going for sale

Thank you @RelievedSheff, that’s interesting that you are now after 2 years at the price your neighbours bought at. Of course, I’m aware you are not selling but felt your post was a little misleading. 

Assuming the others were valued at a similar price then none of the plots would have lost any money and three of them would have risen in value. There was certainly no intention of being misleading and I apologise if that is how it came across!

What you are describing is a flat market, and that is with massive government intervention to keep the wheels turning.