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

strawb_shortcake

Prices in South Gloucestershire don't seem to be as buoyant as Bristol, can you get a bit more for your money over the border? 

snowqueen555

annabanana82 said:

Prices in South Gloucestershire don't seem to be as buoyant as Bristol, can you get a bit more for your money over the border? 

Both South Glos and Bristol are pretty similar, of course there are areas further out for both that are a bit cheaper.

strawb_shortcake

@snowqueen555 more towards Thornbury way there has been some downward shift, 1 bed flat sold for £135k, some 3 bed houses on for £250k not much interest by the looks of rightmove either. 

UnderOffer

@snowqueen555 sorry if I’ve missed this, but is this a 1 bed house or flat? I’d probably prefer to invest in a house as you then don’t have a freeholder or lease costs, repair costs for building to factor in. 

Schwarzwald

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.

Dont listen to this person …. Broken record. If it were that simple, it would be nice, and while rising interest rates no question put pressure on all asset prices, politics fiddling with tax support and other fiscal measures might just stabilize it … who knows, nobody, exactly

snowqueen555

UnderOffer said:

@snowqueen555 sorry if I’ve missed this, but is this a 1 bed house or flat? I’d probably prefer to invest in a house as you then don’t have a freeholder or lease costs, repair costs for building to factor in. 

It's a flat, cannot afford a house, can barely afford a 1 bed unfortunately.

annabanana82 said:

@snowqueen555 more towards Thornbury way there has been some downward shift, 1 bed flat sold for £135k, some 3 bed houses on for £250k not much interest by the looks of rightmove either. 

Thornbury is too far out for me. I think the odd thing has sold low but everything on my watchlist eventually sells. Maybe they are selling slightly below who knows, and I was have outbid a couple of times int he last month?

Schwarzwald 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.

Dont listen to this person …. Broken record. If it were that simple, it would be nice, and while rising interest rates no question put pressure on all asset prices, politics fiddling with tax support and other fiscal measures might just stabilize it … who knows, nobody, exactly

Yeah it is tough, thanks for the advice.

silvercar

I’d rather be an owner and risk any paper losses, given that losses only materialise when you sell, than not buy and risk never being able to afford to do so.

I’ve sold at a loss in the past, but the next purchase was cheaper as a result, so I didn’t mind and certainly would have preferred it that way round than renting while waiting to buy.

I could never afford my current home that I bought 16 years ago. It’s gone up and down in value over the years, but this doesn’t matter if your not selling 

Sarah1Mitty2

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.

You don`t see prices falling 10%? That is an extremely optimistic position IMO. Why not post up examples of the sort of property you are looking at so we can follow the price movements with PropertyLog?

Mr.Generous

silvercar said:

I’d rather be an owner and risk any paper losses, given that losses only materialise when you sell, than not buy and risk never being able to afford to do so.

I’ve sold at a loss in the past, but the next purchase was cheaper as a result, so I didn’t mind and certainly would have preferred it that way round than renting while waiting to buy.

I could never afford my current home that I bought 16 years ago. It’s gone up and down in value over the years, but this doesn’t matter if your not selling 

Agree with every word.

I have financial security because of property. I rode out the storms because the good years add so much more than the bad years take away. I see people on here post things about debts or money with earning much, much higher than my best years in employment, but my net worth is more than I ever thought I'd get close to. The best financial decisions I ever made were buying properties.

Sometimes you have to just go for it. I'd rather take a slight risk by being in the game than watch house prices get further out of reach from the sidelines.

snowqueen555

Sarah1Mitty2 said:

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.

You don`t see prices falling 10%? That is an extremely optimistic position IMO. Why not post up examples of the sort of property you are looking at so we can follow the price movements with PropertyLog?

No I don't, and I don't see it as optimistic. I just don't see them dipping that much, outside of interest rates and house prices there will always be a lack of housing supply in this country.

Rather than focus on specific properties it would be fairer to track the average sold price with a city or region. By all means prove me wrong, it is just my opinion.