Realistic Discount on New Builds When Ready To Proceed

SouthCoast

Bellway plc
Interim Management Statement
5th June 2008


Bellway is today updating the market on current trading conditions by issuing
this Interim Management Statement.

Since the announcement of the Group's Interim Results on Wednesday 26th March,
there has been no sign of the normal spring selling surge. Whilst conditions
vary from region to region, the Midlands, Yorkshire and the North West have been
particularlyhard hit. Thames Gateway and Scotland have been resilient but the
restricted mortgage supply, combined with a sapping of consumer confidence, is
leading to further market weakness.

Since 1st February the deterioration in the market has resulted in net
reservations, taken in this shorter period, being down 31%. This low level of
activity means that our expectations of volume for the year ending 31st July
2008 have now been
revisited and whilst we had anticipated a fall of around 5 - 10% in the number
of homes sold, compared to last year's level of 7,638, it is now expected that
the fall will be in the range of 10 - 15%.

Continued:

http://www.bellwaycorporate.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&transform=newsitem_new&item=64888365930646&ir_client_id=103


P.S. I live in a Bellway property made of cardboard glued to a steel frame. The build quality of the development is very poor.

A_Guard_Swine

SquatNow wrote: »

Realistically the question is irrelevent.

The OP is unlikely to get a mortgage offer (or a mortgage offer woth accepting) on a new build with only a 10% deposit.

The OP is simply NOT in a position to proceed and the builders will spot this and will show them the door, rather than talking down the value of their houses.

What it comes down to is while the OP may not care about going into negative equity, THE BANK WILL.

Correct !
To be blunt EA's and NH sale spend there current days taking loads of silly calls with silly offers !

People claim they are cash when they are not
People claim thay can move when they can not

In brief most punters are not serious only 1 in 5 maybe 1 in 10 are worth the conversation.
That sound harsh but ask any EA ....


If you want them to consider you !
If you want them to listen you need 3 things


1. ID ( They know who you are )
2. A letter from a solicitor saying they ar willing to act ( They know you really want to buy )
3.Qualification ( They know you can afford it )

If you take those to any EA they will even get you coffee

Davey16

SquatNow wrote: »

Realistically the question is irrelevent.

The OP is unlikely to get a mortgage offer (or a mortgage offer woth accepting) on a new build with only a 10% deposit.

The OP is simply NOT in a position to proceed and the builders will spot this and will show them the door, rather than talking down the value of their houses.

What it comes down to is while the OP may not care about going into negative equity, THE BANK WILL.

Thanks for all the advice everyone, back to Squatnows comment.
We are in a position to proceed, we had the financial advisor round last friday, and he said there was a number of mortgages available to us, I have also spoken to the HSBC and the Halifax who said they had mortgages available to us with the deposit we had. Our advisor says this is down to us both being in professional jobs which are classed as fairly secure(as secure as you can get today) with good pension schemes!

I still have about 4 months left of living in with family (we were given a 6 month deadline) so given time it takes to complete etc i really need to start looking and bargaining now irrelevant of how the market is going!

The home we buy will hopefully do us for many years, so not really looking for immediate investment.

thanks

Davey16

any more advice or stories of large discounts?

thanks!

guppy

If you've your heart set on a new build keep your eyes open for a repossessed one at auction. Some are selling below the original price (though keep in mind the land registry price will be inflated by the incentives offered orginally).

I wouldn't touch a Bellway house, they seem to be in the worst locations and have a terrible reputation for quality IMO. If you're after a new build flat these have a long way to fall yet in most towns too...

Davey16

we're not interested in a flat, we've just sold one!
i thought that about bellways but having done more research into other builders, its seems everyone you speak to has a problem somewhere along the line regardless of the builder!

i've typed a letter to bellway now and gonna send it off so will just see what reply i get, will keep informed!

thanks!

wymondham

My Advice...

I know everyone has their own reason to buy/not buy etc.. but it's odd that if people don't have to buy at present, but can rent short term, then why would they buy?? This is probably the worst time in several decades to buy, yet people are still considering it! Even more bizarre is people buying new properties - the most risky route!!

That nice 10% you've saved hard for will be lost the moment you get the keys ... if you're aware and happy then it's fine.... if you rented then you've still got the 10% and it's growing.... (at an increasing rate as interest rates rise!)

even if you're 'not buying as an investment, but as a home' etc, you never know what is around the corner and you may HAVE to sell quickly/unexpectantly (circumstances can change rapidly!). If you are in negative equity it hurts - it really hurts (I've been there!!) and I would not choose to put myself in that position ever again or wish it on anyone. It makes sense to keep your options open and not to box yourself in - always have an exit strategy!

Buy once we hit the bottom to protect yourself, and don't buy a new build if you can avoid it. If you do go for a new build, check it's not in an area that's prone to flooding - as the land is nice and cheap to buy, so their profits are bigger!

... but it's your money and your life ...!

geoffky

the biggest discount you are going to get is time...wait a year and the discount will be massive...simple really

SouthCoast

I

still have about 4 months left of living in with family (we were given a 6 month deadline) so given time it takes to complete etc i really need to start looking and bargaining now irrelevant of how the market is going!

Why the rush?

Bellway's trading year ends on the 31st July and the nearer they get to that date the more desperate they will get to do deals.

Taniamiff

Hi, We are in the process of part-exing our current property to move into a newbuild barratt home. We got about market value for our property and after much to'ing and fro'ing finally managed to get the new build down by 20k. We also got the usual incentives of carpets, turf and fitted wardrobes etc. Good luck with it.