New Build Incentives

Russb2466

I am looking to purchase a new build property which comes with a £7000 incentive, ive been told this can be used for utility upgrades, flooring ect also been told it can be used as an upfront discount on the purchase price. Is discounting the price a financially beneficial way to go or would it be better used for utility upgrades. Anyone had experience of this.

bramptonbrew

Are the utility upgrades things you'd actually want/need in the house? Would it cost you more than £7k to source them yourselves if you decided you wanted them? I think the best way to approach it is working out what would benefit you most - a nicer kitchen or built in wardrobes for example, or £7k off the purchase price?

eddddy

I guess the main question is... are the upgrades things you want, and are they good value for money? Could you get them cheaper after you buy?

(Obviously, some things can't be sensibly upgraded after you buy. For example, even if the builder is charging over the odds for a granite kitchen worktops, it probably wouldn't be cost effective for the builder to fit 'standard' worktops in the kitchen - then you rip them out and replace them with granite.)

There are some other factors, like:

• If you take the £7k discount - that will reduce the amount of mortgage you can borrow. So you'd need extra cash to pay for any upgrades after purchase.

• If you take the £7k discount - you might pay a bit less SDLT (but that's probably not significant)

dimbo61

If the builder has built 30 properties all the same size and style and sells the first 5 for £250,000 they are highly unlikely to want to discount your new build by £7,000
Now they may offer full fencing and turf of the rear garden, fitted sliding wardrobes, better kitchen etc

Rather than a cash discount which would effect other house sales