do you think i sould haggle on price of new build?

getmore4less

10% forget it, think 40% settle for 20%+

Its a waiting game, just keep an eye on the count still for sale, if it gets low then jump in with 2/3rd unsold they either have to stop and leave shell or finish and try to sell if the forrmer the phase will not get finished for a long time leaving you living in a building site.

Phase two pending so you will have a building site next door when they do start,

At some point they will want to sell up and get of the site so have to do deals,

Round us they are getting desperate so offering shared ownership on the last few plots to try and keep the headline prices up. before that it was deposit,stamp duty, 2 years mortgage paid offers on the table and still could not sell them all.

The down side is wou will not get the best plots.

allan673

i agree, dont settle for less than a 20% discount

some flats near me were £125k, theyve been reduced further to £105k and still are not selling.

f1slikki

hey guys again thanks for the input.

good to know that people are getting discounts or at least good deals.
phase 2 is on hold & unsure when this will be resumed however it is not in any way going to affect where i am looking to purchase, its at the other end of the development.

the developers have offered shared equity of 80% on this property & £4,000 cashback on certain plots however they are still not selling fast.
i am going to ride it out for as much as possible but i am set on a certain plot so dont want to shoot myself in the foot.
the flat is £145,500 however i am looking at getting this down to £130,950 which is 10% off, then i was looking to go on the 80% shared equity which would mean a mortgage of £104,760. this means that if the prices do fall i'm not taking all the risks & with having the initial discount this should cover some of the shortfall. this is where it gets cheeky if this is agreed i was then going to try my luck a bit further by asking about the £4,000 cashback as this would pay off my car finance therefore reducing my monthly outgoings by £289 per mth. with the way the market is i feel i should try for as much as possible & hope for the best as the interest rates on mortgages have increased this meaning for us buyers higher outgoings therefore we need to do something in retaliation to this to try to help us still afford to live.
what do you think am i just getting a head of myself now or is it worth a shot?

getmore4less

Get a copy of the shared ownership agreement and go through it to make sure the "buy the other bit clauses" are sensible and fair.

Make sure there are not any clauses that resrtict you like no lodgers or sublets.

You want the rent free period on the bit you don't buy to be a long as possible look for at least 10 years.

If leasehold you want the grown rent and service charges paid for at least 2 years.

Has Phase two got totaly seperate access from access to your area if not you will be effected by the build traffic

Don't forget the prices were set with "newbuild" and "Rising market" premiums built in so thats at least 10% if not 15%, we are now in a falling market so you need to have 5%-10% discount for that and then the there is the "desperate builder" discount to factor in.

Thats why I say 20% min.

What do they rent out for and how many in the development look like they will be rented out. This will give a guide to what a sensible BTL landlords would move in at. and the likly hood it will develop into a run down area quicker than if it was all owner occupiers.

f1slikki

hi there, thanks again for the replys.

i am unsure about BTL or what they rent out for as there is only a handful of people living at the development just now, how do i find this info out?

your comments about the price being made in a rising market is good so thats giving me more to put to them.
i know what your saying about the discounts however 10% would be fab for me my main concern is that i'm looking for the shared equity part as well. the shared equity gives you upto 10yrs to purchase the other 20% without interest being accrued, no rent to pay on the remaining shared. not sure at this stage about lodgers/sublets however i am wanting the flat to start a family so will be there for a while and not thinking of this.
do you think i have any chance on what i am asking remember i am going to chance my arm with the £4k cashback too.

thanks guys.

CattyMouse

Hi, I would go for 15% like someone already said, or even 20 . . . they will come back to you especially if they have a lot to sell. I called about a new house after Christmas, and said we would go and see then in June. She laughed and said couldn't guarantee prices would be the same and that the property would be available. Went in June 08 and they only sold 20% of the properties since 2007 . . . AND prices were down 14% and on top of that, they are offerinf 5% + stamp duty + carpets etc . . . so be brave, if they laugh it doesn't matter, you might have the last laugh