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Zone 3 - wheres the catch?

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  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    https://www.galliardhomes.com/westgate-house
    "Estimated completion Q3/Q4 2020", right at the very top of the page.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    First Post Combo Breaker
    lisyloo wrote: »
    No, not much point for us then (as looking to move from London in 2021 when DH is 55).

    Does that mean you're looking to buy somewhere now and only own for 4 years? I'd think very carefully in the current market about whether that's the best idea, as I could see you losing money after fees, stamp duty, service charges, etc., and that's not taking into consideration who might want to buy it from you and for how much when you come to sell.
  • bouicca21
    bouicca21 Posts: 6,513 Forumite
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    As others have said its right next to the A40 and a particularly nasty polluted bit at that.
  • lisyloo
    lisyloo Posts: 29,610 Forumite
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    edited 12 September 2017 at 12:07PM
    agrinnall wrote: »
    Does that mean you're looking to buy somewhere now and only own for 4 years? I'd think very carefully in the current market about whether that's the best idea, as I could see you losing money after fees, stamp duty, service charges, etc., and that's not taking into consideration who might want to buy it from you and for how much when you come to sell.


    We have a permanent home elsewhere and plan A is to return to that home in 4 years (when DH is 55 and hopefully somewhere near LTA).
    We currently put a lot of our disposable income into pensions which is tax efficient as my partner runs a limited company and I have access to salary sacrifice with 45.8% tax relief (20+12+13.8).


    So far we have rented, partly because we don't know with absolute certainty we'd be in London (although it's likely) and I also did some calculations comparing putting our money into pensions (with tax relief) vs putting it into a second property (where CGT and extra stamp duty applies).


    My calculations showed in our circumstances i.e. being a second property and having to pay higher rates of tax to liquidise income to pay a mortgage that the cut-off point was 9 years.
    i.e. before 9 years renting is cheaper.
    This is longer than normal, but as I said we can otherwise avail ourselves of tax advantages if we use the money for pension income.


    So far we have rented and aligned our rental period with the contract, so if the contract ends we can pretty much walk away with our suitcases.


    You are probably right, but sometimes pictures of nice properties catch my eye (as the marketing is intended to), especially when considering we'll spend upwards of £80K of rent over the next 4 years.


    We wouldn't HAVE to sell after 4 years. The option of renting out and selling at a better time is there, but I have to say I'm not a fan of being a landlord especially if it's not close to "home".
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    "ideally suited for first-time buyers, post graduates, house movers or investors"...Dog Groomers, bakers, candlestick makers, ex-HPC members,....anyone...please! The catch is no one wants this rubbish in a declining market.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    lisyloo wrote: »
    We have a permanent home elsewhere and plan A is to return to that home in 4 years.
    We currently put a lot of our disposable income into pensions which is tax efficient as my partner runs a limited company and I have access to salary sacrifice with 45.8% tax relief.


    So far we have rented, partly because we don't know with absolute certainty we'd be in London (although it's likely) and I also did some calculations comparing putting our money into pensions (with tax relief) vs putting it into a second property (where CGT and extra stamp duty applies).


    My calculations showed in our circumstances i.e. being a second property and having to pay higher rates of tax to liquidise income to pay a mortgage that the cut-off point was 9 years.
    This is higher than normal, but as I said we can otherwise avail ourselves of tax advantages if we use the money for pension income.


    So far we have rented and aligned our rental period with the contract, so if the contract ends we can pretty much walk away with our suitcases.


    You are probably right, but sometimes picture of nice properties catch my eye (as the marketing is intended to), especially when considering we'll spend upwards of £80K of rent over the next 4 years.


    We wouldn't HAVE to sell after 4 years. The option of renting out and selling at a better time is there, but I have to say I'm not a fan of being a landlord especially if it's not close to "home".


    Sorry, did I miss the link to the "nice" property??
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    Crashy_Time wrote: »
    The catch is no one wants this rubbish in a declining market
    I suspect you'll be proven wrong on that.
    Crashy_Time wrote: »
    Sorry, did I miss the link to the "nice" property??
    Certainly wouldn't be my choice, but it will be many people's.
  • mugatool
    mugatool Posts: 16 Forumite
    It's small, the service charges will be huge and it's going to be loud, but they'll still probably sell all the flats before the first phase is completed. Lived in Greater London for 2 years and the lack of affordable housing puts people into very desperate situations
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    mugatool wrote: »
    It's small, the service charges will be huge and it's going to be loud, but they'll still probably sell all the flats before the first phase is completed. Lived in Greater London for 2 years and the lack of affordable housing puts people into very desperate situations


    Sometimes they even get desperate enough to...shock horror...actually LEAVE London!
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    AdrianC wrote: »
    I suspect you'll be proven wrong on that.

    Certainly wouldn't be my choice, but it will be many people's.



    Why is the OP, with years of experience of living in London, thinking these properties are cheap then? Surely you bump up the price of something in big demand?
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