FTB would you buy a new build now?

inthe80s

The house me and OH are planning to purchase has already been reduced they were selling for roughly 180000 in 2005 and we wil be paying 169000, with a 5% gifted depost so 161000.
Weve saved 20,000 between us but need alot of the money for furniture, carpets etc.
My OH is already a home owner,im still at my parents. he wants me to go in on the mortgage 50/50.
id never buy now if it was my choice, but he does have a well paid job, he's self employed on around 50-60 k im, so i guess he can afford it.
Hes getting rid of his house in a part exchange with the developer, but contracts havent exchanged and theres already a buyer for his current property.
I suggested to just sell and rent.... he doesnt want to rent....
It will be to late soon, as were just waiting for contracts to exchange, but i presume we could pull out before then.
what would you do?

lawrie28

Said this on another thread, unless you are married, be really careful about buying a house with another person. If you split up, it can be a nightmare, especially with a joint mortgage. Do a bit of reading on the internet, get a book, speak to a solicitor. It could cost either/both of you thousands, and make it really messy if you go seperate ways. I know you are not planning to, but I have seen 2 engaged couples buy a house together and then split.
If you are happy with the house, and the price, then buy. If you don't fel the deal is right, then dont.
Look at getting 2 individual mortgages, and an agreement regarding selling etc, then if things go wrong you are in abetter position. Likewise so will the OH, so they should go for it. And if you don't split, so much the better. (i don't want to curse you, but be carefull, and good luck!!)

RHemmings

I would buy a newbuild depending on the house and the price. I wouldn't be interested in a new build flat, but I wouldn't be interested in any flat. If I was looking at a new build, I'd certainly have a full structural survey, hopefully covering things such as the quality of materials and construction. Though I don't know if such a survey is possible, whether it would cost too much, or whether the builders could supply the necessary information themselves.

PasturesNew

I'd worry about the future potential of a relationship where you're not discussing these things together and being of a similar mind about what to do over fundamental money issues.... and instead are posting on a public internet forum to ask total strangers.

Sorry, but to me the important thing here is the foundations of your relationship, not the current housing market.

TALK TO HIM DAMMIT.

Doozergirl

Presuming he has equity in his property already as well; on a salary of that amount, he can more than afford the mortgage repayments.

Whether or not you decide to go in with him on that depends on you. If this is a home then I can't see what the problem is really, unless it's a flat. If it's a house, well, the developers do stick a premium on the house but nothing near what they've been doing with flats. It's your job to negotiate them down. Probably better with your own buyer than a part-ex but it seems it is possible to get part-ex and discounts in this market.

Erm, 5% gifted deposit AND part exchange? Why?

SquatNow

They're buying a new-build!

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

hang on you'll have to give me a minute....

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

OK, I'm done. Now save yourself the hassle by putting all your money in a wastepaper basket and setting fire to it, then move in with one of your parents.

It less hassle that buying a new build, and the results are the same.

ixwood

I'm no HPC loon, but I wouldn't touch a new build with someone else's bargepole now. They're generally cramped, shoddy, overvalued, overpriced and oversupplied.

I'd be reluctant to get into the market with any property at this point in the cycle. Live cheap and save, your time will come.

teabelly

I'd buy one .... but they'd have to chuck in another for free

New builds are generally over priced. Some builders build shoddy rubbish and others build ok homes. Make sure you break their balls over any snags and get them fixed.

Compare the price of this for what 4 or 5 year similar property is selling for now. That is what yours will be worth as generally new builds lose value in the first couple of years unless you buy them at about 20% below an independent valuation.

You can make money with property in any market as long as you buy cheaply enough.

Being on the mortgage makes you jointly liable for it so if you don't want that level of commitment then say so to your OH now....

cam101

I am currently living in my third new build, and disagree with the above posts.

We got a very good deal compared to similar older properties in our area, along with the benefit of a blank canvas to style as we wish. No cleaning out other people's muck when you move in... no wondering what the stain on the wall/floor is...! I agree there are some bad developments, especially with the new building regulations that mean they have to be packed in much more. You just have to choose your plot carefully, and of course haggle on price.

People are all entitled to their opinion, but there are many new build occupants whose blood will be boiling at the comments above!

If your relationship is secure, then you should definitely buy not rent. You will look back gladly in years to come. Of course take care of things legally, but don't let this scare you off going for it.

Good luck