New Builds

Kenny4315

I would say that new builds are not sold for a premium, I would say quite the reverse is true. I have a house that was built in 1885, (high ceiling, marble fireplaces, original ceiling roses, corbels, original coving, etc) and it is worth significantly more than the equivalent sized new build.

The main reason for this is that the build quality of most new builds is absolute rubbish, made in a hurry with shoddy cheap materials, they might look nice for a few years but won't stand the test of time. Sure older houses are more maintenance but they have style and quality that is simply not present in new builds. My house will be standing intact here in another 120 years time, I doubt very much if the new build rubbish will.

I mean to say it timber frame houses with a cladded wall in the damp wet UK, breeze block exterior walls, cheap quality bricks, paper thin interior walls, and even walls between houses of paper thin quality (christ when I come back from the pub and want to have some fun with the wife I don't want the bed to end up through the wall and find myself lying next to the neighbours, its bad news if you need to borrow some sugar at any point, given my current neighbour is a pensioner it would probably give her a heart attack aswell). I can hit my internal walls with a sledgehammer and they wouldn't move.

I thought the builders of new builds were also now offering discounts to get there stuff shifted due to the market downturn. Also the use gimmicks like pay the stamp duty, pay moving costs, etc.

blossom30

My personal experience of new properties was not good.... We bought a new 2 bedroomed property from a " reputable" builder and there were a few problems with the sound proofing....it was supposed to have cavity wall insulation and I could hear my next door neighbour snoring!!! and also his alarm clock going off.I phoned the council and spoke to the officer who had personally passed the house I was living in and he said it met the minimum standard required for sound proofing..... There was also a problem with the stairs, in that they started coming away from the wall. The gaffer came in (they were still building nearby) and I could hear him discussing with the joiner as to who b***** done this, it was probably one of those Friday afternoon jobs. We are in an older property now built in the 80's and although it is not as bad as the other house the sound proofing is not perfect. I think the best properties are the red sandstone or blonde sandstone but they are a bit out of my price range.

bylromarha

Check out this thread for a few more opinions on the matter.

http://forums.moneysavingexpert.com/showthread.html?t=54748&highlight=house

Our new build has risen in value over and above other houses in the area, not by much though. However, there is currently too many on the market round here, so the ones on our estate are no longer being snapped up like they used to.

If the deal is right for you then go for it...however, as it is a buyers market I'd try to negotiate the price too. The incentives are good, but a reduction in price is worth it for the builder if the buyer is offering to complete ASAP as they are FTB.

John_M_Business

Hey... Bloor Homes...? Check this out:
http://groups.google.co.uk/group/uk.d-i-y/browse_thread/thread/6b2aabaed8fb8076/2d157909b2da974b?q=%22bloor+homes%22&rnum=1&hl=en#2d157909b2da974b

I always use Google Groups and search for business names when I'm doing a largeish transaction. Seems that these people aren't too complimentary.

alared

On Wednesday I visited the sales office of one of the many builders (about, would you believe, 15) who are developing near to where I live.
The cost of the house was £217,000 so I asked what incentives are being offered to get me to reserve a plot.
Immediately I was told there was a 5% deposit that they would pay,stamp duty and free carpets up to a value of £3,000.
If you did`nt want the free carpets they would knock the £3k off the price of the house.
So we now get the £217,000 house for £200,980 and with a bit of patter and negotiation she says "I`ll need to phone my sales manager" they accept my offer of £200k.
A true moneysaver,I`ve just saved a massive £17k,fantastic, unbelieveable (which it is).
Why fellow moneysavers did they knock off £17k without blinking an eyelid?

Because they had added it on in the first place,what a big gigantic con.

But believe it or not people came out of the showhouse sales office smiling and slapping themslves on the back saying how much they`ve saved and screwed out of the builders.

Reminds me of one of my gullible neighbours who told me about her replacement windows and doors.
"I only paid for the front ones,the back ones were free"

er, yeah

lush_walrus

Personally I would say avoid new builds like the plague. But if you are determined, the best checks are:

1. Check what the previous use of the land was (if you dont already know) a lot are now being built on contaminated land as the government have released incentives to use this sort of land. A large plot near my parents has just had two hundred houses jammed onto the site. The land was used until 2 years ago as an active gunpowder testing plant, and is situated in a flood plane. In fact while under construction 50% of the new houses actually flooded, little known to the people who live in them now.

2. Check what you are getting for your money, vast majority are sold at a higher premium to pay for the guarantees you get with a new build and all the perks of being in something brand new. Easiest way to check is to go to local estate agents, and ask for details in the price range of what you are paying. Check the details against what you are getting ie room sizes, garden size etc, then you will know. 99% of the time, due to new minimum sizes released by planning departments to increase density are lower than 10 plus years ago, so check them and that you really can fit furniture in rooms.

Watch out for little tricks that developers are now making to ensure maximum profit, such as ommiting any form of front garden and narrow roads, which make parking outside your house impossible. All new builds (except for those considered to be within close transport links) have to provide off street parking...BUT this can be only one space/garage, so make sure you have space for overspill parking ie, what happens if you have people to stay or a dinner party, is there space on road or somewhere close to park. As I say, cost saving developers are making sure that roads are to a minimum width.

3. Check where housing association / council accomodation is being located on the site. All developments over 10 dwellings now have to provide a proportion of non private housing. Make sure that yours is not next to the non private accomodation, as it will definately reduce the price you will be able to re-sell yours for.

I would say if you have checked all of the above, and are happy, then go ahead!

alanobrien

Personally i would go for an older bigger house every time
mainly because they are usually bigger and better built.

It is true that older houses are generally not as ergonomically convenient as new build but that is just a reflection of when they were built. Interiors can always be re arranged to suit particular lifestyles.

I can see the attraction of new builds especially for first time buyers, ultimately buying is always down to individual taste and if you like it, go for it.

meanmachine_2

Put me down for another potential buyer who wouldn't touch a new build - if you paid me!

Like another poster, there has been a huge amount of new builds in my area - every single one built on a flood plain. In less than 30 years' time they'll all be under water - or at least suffering from severe damp.

But the goons from outside the area don't even think to find out this info. In my opinion anyone who doesn't do their research deserves what they get.

vale_2

TJMD
If you can find someone locally to proffesionally snag for you it will be money well spent.Give the list to the builder and tell them to sort it out....I have done this in the past and delayed completion until all resolved!!
Once you move in and pay your money some builders prove almost impossible to get back.
Have not used these but here you go
http://www.newbuildinspections.com/

bunking_off

It does always amuse me that advocates of older properties can't acknowledge that newbuilds have their attractions, and believe that any purchasers must be mistaken. Me? I prefer newer properties but can understand why others might like older properties. Why don't people on the other side of the fence seem able to acknowledge other's preferences? Not having a go at any of the posters hear, more the C4/Locationlocation effect. Why have a nice sleek modern house when you can live in this derelict barn for a year and possibly make £10k poncing it up.... :-)

It is a fact that older properties will have more land (it's inherent in the planning rules), but it's not true to say the rooms on older properties are always bigger. To find an period house in my area with 2000sq ft like my newbuild would need a wallet at least twice the size. For the same money as I paid, in period property you get pokey living rooms at 14ft square, and bedrooms where there isn't a hope of creating an ensuite - at least not without losing a bedroom and £30k off the value. The real bargains size wise are 1960/70s property...but the trade-off is it can be (but isn't always!) the worst of all worlds with dubious build quality and not many comforts like modern kitchens and ensuites.

There are some newbuild properties in my area that I wouldn't touch with a bargepole because they've been built on (de)contaminated land or are near floodplains. However, to condemn *all* newbuilds on that basis is illogical. We're about 40 feet above the level of the nearest river and half a mile way, built on green belt. As such, any concerns on that front would really be of an ethical nature of how on earth the builders got planning permission.

Returning to the original question, IMHO the pecking order on house prices, INTERNAL area for area, highest price per sq ft to lowest price is;

Pre 1950s property
New build
Nearly new build (1990s on)
1980s
1970/1960s.

I believe the original question was around the premium for new build - which I take to be the difference between buying a brand new house and an identical one a year old. Well a place across the way from me (18 months old) is up for £213k. An absolutely identical new build a mile away is £235k...allowing for incentives you'd probably pay £220k. So, 3-4% differential - maybe 5% allowing for my neighbours dropping their price during negotiations, but certainly no more than 10%. However, that's excluding location : I know of a 3 yr example of the same property on another nearby estate up at £230k. So how much of these differentials is driven by new versus used, as opposed to desirability of location, is anyone's guess.