Help 2 Buy Homes, and the difference in price than non H2B!

Southpaw18 · 19 April 2018 at 9:47AM

Hi All,

So after spending years in an IVA, and very much learning my lessons with respect to debts, I have spent 3 years saving for a house, and am up to around 10k deposit wise.

I have spoken to various people and told I can get around 180k using the help to buy. My question however revolves around prices. I!!!8217;m living in Bristol which is sky rocketing faster than a SpaceX rocket currently, but I find, for example H2B houses 1 or 2 bed flats for example, are listed as 189k !!!8211; 210k, yet I see 2 bed flats being sold in very similar areas without H2B (IE, a pre owned house) and the are around 165-175k mark, and, they are much better quality too it seems

My question for everyone is, have you noticed H2B and SO properties being massively over priced by the housing companies like I am starting to notice? Are they over inflating because they KNOW people will use the H2B equity loan?

also, would it be a better option, to save more and try to get a full 10% deposit for any house as opposed to just saving and using the H2B loan?

I have very little knowledge on this, but I would like to think I can make some money possibly on my first house, and I think this will be very difficult in a H2B house, so any comments would be appreciated.

Thanks

hammy1988 · 19 April 2018 at 9:59AM

Overpriced maybe, but then you need to consider that New builds are what they are...new. So you are paying for this, but you should get an up to date economical house with everything new inside. As well as the guarantees which like mine can be up to ten years.

With a non new build, you are taking the risk of not having new, so things can and often do go wrong such as needing a new boiler system or rewiring.

All in all, its down to personal preference. But coming from the South West myself, I would say that £180k is not going to get you very far though.

kingstreet · 19 April 2018 at 11:34AM

Your comparison should be between second hand and newbuild not second hand and HTB.

AFAIK newbuild property is the same price with or without HTB. There is always a premium over the cost of a similar second-hand property.

Paying it, or not is down to your preference - newbuild or not.

Southpaw18 · 19 April 2018 at 12:13PM

Thanks both for your replies. Your points about the new house benefits are definitely very valid. I will take that into consideration definitely.

In respect of comparing h2b you are right, but I say h2b with the exclusive meaning of 'new build' as realistically I think that's the only option I'll have right now.

Just seems like the cost of these is so high. I mean I saw a shared ownership 2 bed terraced house which was 130k for 50% so valued at 270k?! I mean that seems unbelievable and I'd guarantee a similar place that isn't new build would get near 40k less than that on the market so I just wonder what I should be considering.

But very good points thank you both for your inputs

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Help 2 Buy Homes, and the difference in price than non H2B!

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