Making profit when selling a home, ensuring mortgage term does not increase

Oceanic815__

Has anyone made money (equity) from their new build homes in the last 5-10 years that they have been in them? 

What were the challenges to selling, if there were any? (Was it location queries, new build home queries, garden space, neighbours, etc etc) 

I'm curious about future prospects if there was a need to move homes. For reference, we are in a 4 bed detached family home. 

Thank you lots in advance.

Herzlos

What exactly are you asking?

If you bought 5 years ago and sold now you'd probably make a profit, but that's irrelevant. You need to look at the cost to change and the bigger picture. If all houses went up 10%, then you'll pay 10% more for the new house too.

It may only factor in when dealing with mortgage LTV's and affordability, but that'll all be based on the new house.

Veteransaver

New build homes typically don't appreciate much in first 3-5 years compared to others. Especially if the development is sill being completed it's quite hard to sell an existing older home on a development.

Elliott.T123

Oceanic815__ said:

Has anyone made money (equity) from their new build homes in the last 5-10 years that they have been in them? 

What were the challenges to selling, if there were any? (Was it location queries, new build home queries, garden space, neighbours, etc etc) 

I'm curious about future prospects if there was a need to move homes. For reference, we are in a 4 bed detached family home. 

Thank you lots in advance.

Are you asking if anyone has sold a new build for more money after living there for 5-10 years or are you asking if anyone has sold a new build for more money than they bought for having sold it in the last 5-10 years?

The answer to the first one is yes, lots of people will have done. New builds tend not to go up for a few years but after 5-10 years in the current market most to all will have increased in value. 

The answer to the second will be, that depends when they bought it but refer to answer 1.

The answer to all of your questions ultimately come down to how soon are you selling and what stage of the development. If you bought the very first house to be built on a huge development that is taking 5+ years to build then you will struggle to make money on it until the development is complete. Why would someone buy your house at a premium when they could buy a new house? (keep in mind there will potentially be small increases as a developer will be selling houses for more 5 years down the line so if the first house was £400k new then 5 years later that might be £450k and you might be able to sell yours for £410k.

If you buy the last house on the development and are looking to sell 5 years down the line then yes you will make money and it will be easier to sell than scenario 1.

lincroft1710

Buy newbuild 3 bed house for £250K when 4 beds are £300K.


5 years later sell for £300K, hurray profit!!! 4 beds now £360K, so expected percentage increase, but if 4 beds now £375K, then profit not so good.


The answer to your question is even if an apparent profit is made, there are other factors to take into consideration

ReadingTim

Oceanic815__ said:

I'm curious about future prospects if there was a need to move homes. For reference, we are in a 4 bed detached family home. 

If you need to move house, then you need to move house no matter what, so profit or loss be d@mned - it's irrelevant.  

If you don't actually need to move, but merely want to, then you do the sums at the time, and if they don't add up, then you don't move - simple.  

What happens to anyone else is irrelevant.