Sanity check - Buying a 1 bed new build with estate charges

snowqueen555

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

tacpot12

What does the contract say about increases to the estate and services charges? I would be more worried about future increases, especially if the fees are barely affordable today. 

Also, what control you you have over who is managing the estate? Could the residents force a change of management if necessary? 

snowqueen555

tacpot12 said:

What does the contract say about increases to the estate and services charges? I would be more worried about future increases, especially if the fees are barely affordable today. 

Also, what control you you have over who is managing the estate? Could the residents force a change of management if necessary? 

It's a large new suburb, for the estate charges its written into the purchase that they are the estate managers, they also own the greenspaces so that is a pain. This is becoming quite common as councils can't really afford to maintain them so don't adopt them. |The actual management company I am not sure, probably your typical setup as there isn't just one management company for the whole estate, they have won the contract to manage certain blocks.

The typical rises are rpi and every few years it might be £25 instead or something like that but they would be able to increase costs however they want. Residents have been moaning about the increases and lack of work, but I think that is pretty much every management company.

Sarah1Mitty2

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

snowqueen555

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

Sarah1Mitty2

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

I`ll stick my neck out and say they will, The Bristol bubble (like the London, Edinburgh, Manchester etc. etc. bubbles) is built on cheap credit, why not just enjoy some higher savings rates for a while?

snowqueen555

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

I`ll stick my neck out and say they will, The Bristol bubble (like the London, Edinburgh, Manchester etc. etc. bubbles) is built on cheap credit, why not just enjoy some higher savings rates for a while?

I've been waiting a loooong time and invested so much energy. But I am slowly leaning towards waiting. Thanks for your feedback.

RelievedSheff

There will always be people in the position that you are in now. So there will always be a market for smaller properties.

I wouldn't let that put me off.

Estate charges are another matter. We avoided them and bought on a new build estate that doesn't have them, but we were lucky to find one in an area where we wanted to live. Realistically it wouldn't have stopped us buying the property that we are in now if there had been an estate charge.

As to whether to wait or not. I guess only you can answer that question and a lot will depend on how much you want to own your own home. Run the numbers. What would another years rent cost vs the cost of the mortgage on the new place?

Sarah1Mitty2

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

I`ll stick my neck out and say they will, The Bristol bubble (like the London, Edinburgh, Manchester etc. etc. bubbles) is built on cheap credit, why not just enjoy some higher savings rates for a while?

I've been waiting a loooong time and invested so much energy. But I am slowly leaning towards waiting. Thanks for your feedback.

Interest rates are back to where they were in 2008, that is before you even started saving? This alone should help you to pause and think about how prices are created by borrowing costs.

snowqueen555

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

I`ll stick my neck out and say they will, The Bristol bubble (like the London, Edinburgh, Manchester etc. etc. bubbles) is built on cheap credit, why not just enjoy some higher savings rates for a while?

I've been waiting a loooong time and invested so much energy. But I am slowly leaning towards waiting. Thanks for your feedback.

Interest rates are back to where they were in 2008, that is before you even started saving? This alone should help you to pause and think about how prices are created by borrowing costs.

Will prices really reduce enough to counteract the 1-2% rates rises? I'm not so sure, there also seems to be a really big lag.

£100k borrow @ 5% = £585pm
£90k borrow @ 6% = £580pm

From 4% to 5% the price of the house would need to reduce almost 10% to be the same, I really can't see that happening. So you're right, interest rates have a huge impact on price, but I don't see prices falling that much.

MultiFuelBurner

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Sarah1Mitty2 said:

snowqueen555 said:

Hello,

I'm a FTB in my late 30's considering buying a 1 bed newbuild out in the suburbs. I think they are struggling to sell it. It was on for £210k but I've negotiated it down to £195k which is good considering a lot of older run down apartments are going for £180k-ish that requires refurbishment or replacing things.

My main worries are trying to sell it on in the future. A lot of these new estates have estate charges on top of the service charge, this covers maintenance of the greenspaces. This is currently £140pa and the standard service charges are £1040pa. I am also paying the same fees as 2 bed flats so feel like it it expensive, unfortunately I have no control over that.

Should I give this a hard pass, I've been looking for a year and it has been pretty tough. I think I'd be happy there but worried about the saleability in the future, because it is only a 1 bed and also the possible off putting nature of the estate and service charges. I'd like a 2 bed but can't quite seem to be able to get one.

Pass this time, they will be cheaper in future, and so will 2 beds.

If only I had a crystal ball. I've been saving up close to a decade so this has been pretty long experience. I'm not sure prices will fall where I am (Bristol).

I`ll stick my neck out and say they will, The Bristol bubble (like the London, Edinburgh, Manchester etc. etc. bubbles) is built on cheap credit, why not just enjoy some higher savings rates for a while?

I've been waiting a loooong time and invested so much energy. But I am slowly leaning towards waiting. Thanks for your feedback.

Interest rates are back to where they were in 2008, that is before you even started saving? This alone should help you to pause and think about how prices are created by borrowing costs.

Will prices really reduce enough to counteract the 1-2% rates rises? I'm not so sure, there also seems to be a really big lag.

£100k borrow @ 5% = £585pm
£90k borrow @ 6% = £580pm

From 4% to 5% the price of the house would need to reduce almost 10% to be the same, I really can't see that happening. So you're right, interest rates have a huge impact on price, but I don't see prices falling that much.

There is a person on my ignore list on these forums but I do get to see when people quote them.

To put some perspective on their advice

(Stolen from another member please shout if it was you)

In 2014 sarah1mitty2 said on these forums "buying in 2011 was probably the worst mistake you are ever going to make", house prices are up 58% since then...

In 2018 sarah1mitty2 again said "worst possible market to be throwing money at property", prices are up 22% since then...

In 2020 sarah1mitty2 said "It is the worst time in a long time to be buying property", prices are up 12% since then...

However even a broken watch is right twice a day so who knows👍