Has anyone broke even or profited from selling their new build flat in London?

l_f_w

I'm looking to buy a 1 bed property in East London and I am exploring all my options. I'm looking at Zone 3 areas like Leyton/Leytonstone and Walthamstow. 

I've got two routes: 

1) Help To Buy Equity Loan - 1 bed new build for £375K - £400K.

2) Standard 90% mortgage route - 1 bed older property for budget of aprox £270-310K.

I want to go for the new build as it's a nicer property, has great amenities and the one I've got my eye on is in my ideal location (7 mins walk to the tube). 

My worry from all my research is whether I'll be able to break even when it comes to selling in 5 years. I've looked at the area in a lot of detail and can see nice 1 bed flats with outdoor space sold for £370-400K in the last year, however these were all period properties. 

Any advice on selling a new build and breaking even? For reference, the new build I want is £396K in Leyton - walking distance to Hackney Marshes/Olympic Park and on the central line so well connected. It's 560 sqft and has a balcony which is south facing. It's in a block of 67 flats and townhouses. 

Thanks!

Slithery

This is your 3rd thread in 2 days asking the same questions.

Please stick to the forum rules and don't create multiple threads on the same issue as it just confuses everyone that is trying to give advice.

l_f_w

Slithery said:

This is your 3rd thread in 2 days asking the same questions.

Please stick to the forum rules and don't create multiple threads on the same issue as it just confuses everyone that is trying to give advice.

Got it but this question is different from the other's. I'm asking for advice specifically from people who have sold a new build flat in London recently - the others were about old vs. new build and Leyton vs. Walthamstow. 

MINNIEMOMO

We lost money on our new build sale. Lost about 10k.

propertyhunter

I made 10%, bought in 2014 and sold in 2021 in Zone 4. Not much at all vs houses, but makes sense given the pandemic race for space and the cladding crisis. 

AFF8879

I’ll just copy and paste my response to your thread yesterday given the question is pretty much exactly the same…

If you know you’re only going to stay there three years then my strong preference would be option 3) none of the above, and definitely not a HTB new build. You’ll end up losing money even without negative equity either way in terms of paying 2 sets of legal fees, SDLT on the next purchase etc.

Where do you see yourself living in 3-4 years? I would aim for that as my first time buy even if it means another year or two renting. I wouldn’t worry about runaway house prices in east London, though I might do if I was looking to buy in the suburbs/Shires, so if that’s where you were thinking of as a next step I would just cut out the London flat and go straight for that. 

And I say this as someone who owned a 1 bed flat in Bow before selling and buying a house in Hampshire in a similar timeframe to what you’re proposing... No regrets per se but it would have been much easier (and cheaper) to just skip straight to the house.

saajan_12

l_f_w said:

Slithery said:

This is your 3rd thread in 2 days asking the same questions.

Please stick to the forum rules and don't create multiple threads on the same issue as it just confuses everyone that is trying to give advice.

Got it but this question is different from the other's. I'm asking for advice specifically from people who have sold a new build flat in London recently - the others were about old vs. new build and Leyton vs. Walthamstow. 

They are still very linked - in advising about your situation, people might bring in their own experience if they lost money or not. HTB is linked to the pros and cons of a new build. Particularly as you're giving the full picture in your OPs, people may post about the other parts not just the question in the title, but they don't have the benefit of seeing everyone else's responses.

Please consolidate or a mod will. 

csgohan4

OP do you want to hear something different, specifically what you want to hear?

l_f_w

csgohan4 said:

OP do you want to hear something different, specifically what you want to hear?

Just looking for genuine stories which I'm struggling to find to be honest

sammyjammy

l_f_w said:

Slithery said:

This is your 3rd thread in 2 days asking the same questions.

Please stick to the forum rules and don't create multiple threads on the same issue as it just confuses everyone that is trying to give advice.

Got it but this question is different from the other's. I'm asking for advice specifically from people who have sold a new build flat in London recently - the others were about old vs. new build and Leyton vs. Walthamstow. 

But you are talking of selling in five years time, nobody can forsee what the market will be at the time so it really doesn't help you.

AFF8879

l_f_w said:

csgohan4 said:

OP do you want to hear something different, specifically what you want to hear?

Just looking for genuine stories which I'm struggling to find to be honest

If you want to buy the new build, then go for it. But if you’re looking for a flurry of people to reply with how much money they’ve made flipping a 1 bed new build flat in London within three years then it ain’t going to happen.