New build homes & haggling.

[GinG]

My garden is suprisingly large to the size of house, I would say the same if not bigger than the 5 bedroom houses on site. We were very lucky to get the plot, it is in a very desirable part of the estate.

It was great to just choose everything for the kitchen etc. Be warned though they charge through the roof for anything additional. For example £600 for the kitchen floor to be tiled, we got it done for £200, tiles for the walls £600 we are getting it done for £300. Etc etc

It all depends at which stage they are at with the build. For example now they are nearing the end and sold most of the houses off, the last few are being sold with extras / discounts etc so they can get off site, prior to this no offers given!

 

[GinG]

Me and my Fiance are looking at a 2 bedroom flat for 50% of the shared equity, total mortgage is £172,000 we need a mortgage for £86,000, we have been lucky enough for her family to help out with the depost, which is 10% = £8600, Im looking to haggle down to 70,000 as it's been on the market since November.

Very unlikely you will get to haggle down on a shared equity house, the builders are already putting down a fair bit in the 50%.

 

[BennyC]

It was great to just choose everything for the kitchen etc. Be warned though they charge through the roof for anything additional. For example £600 for the kitchen floor to be tiled, we got it done for £200, tiles for the walls £600 we are getting it done for £300. Etc etc

It all depends at which stage they are at with the build. For example now they are nearing the end and sold most of the houses off, the last few are being sold with extras / discounts etc so they can get off site, prior to this no offers given!

I think they're at the very beginning as the development itself, after reading their news letter, points to this. I can't see them being too far along with the builds or having built more than a couple of each house initially.

 

[ACE01]

My gf and I bought our first home 2 years ago (today, in fact!) and have mixed feelings about quality.

Pro's:
Blank canvas
2yr builders warranty
Cost-effective
Warm and well-insulated = energy efficient

Cons
Poor quality wall construction - Cheap materials, wall-mounting heavier objects difficult. Tin joists (wall to floor) mean that flooring creaks (as the wall falls). Even having this 'repaired' by the builders multiple times does not resolve the issue, the joiner informed us that this will always happen with the cheap tin vs better quality wood.

As for price, we bought our ~£130k home for ~£106k. That's carpeted and tiled, with fridge, freezer, washer, garden turf & garden shed (which we sold).

Not bad for a 3-bed end terrace of 4!

 

[Bes]

inflation is only temporarily high due to short terms forces, fuel price, commodities and VAT

with the above being true there is no pressure for large interest rate increases

I can't see anything that is going to bring fuel prices back down bar some wonder technology.

More QE is still a possibility too- that will push Sterling even lower.

Commodities are being driven higher, again by demand, but also by currency weakness. The fact that pretty much all world currencies are being debased by commodities AND Sterling has slumped against other majors mean two things:

1) Stubborn inflation in the medium term.
2) The threat of a longer- term shift in the relationship between the cost of living and wages. Inflation for most householders is higher than the 'official' rate.

Bottom line is, as a net importer, if the government wants to keep inflation within the 2% range, interest rates MUST rise significantly (relative to now) over the longer term to keep goods and services affordable. The alternative is that high inflation continues to erode the value of sterling, and goods and services become too expensive anyway, which still reduces the amount of cash left over for housing as above.

As for interest rates, they were 6.5-5 % during the two- year period in the mid- ninties when the last crash bottomed out and it seems like the last bubble had no problems inflating in the late 80's /early 90's on much higher rates, meaning it is about affordability, not interest rates in isolation. With people leverged 6/7 times over compared to 3/4 times back then, the net effect of interest rates is much bigger now. A shift to an average house price of 7x earnings would mean that even interest rates north of something like 4% would have devastating consequences for the housing market. Therefore, this paradigm shift cannot happen permanently, as 4% is still quite low by historical standards.

 

[daver]

Even lower? Sterling was about 1.09 against the euro a year ago and its currently close to 1.19 whilst the 6 month forecast is still around 1.25. (We sell quite a bit to Italy/Germany and prices are becoming less competetive again due to the strength of the pound.)

Relatively strong against the Dollar recently as well, we don't sell much there so I haven't followed it much but i'm sure i saw it about 1.6 the other day and its been down to 1.4 or there abouts last year.

 

[Rotty]

I can't see anything that is going to bring fuel prices back down bar some wonder technology.
.

it doesn't need to, if prices stabalise then after a year they are out of the inflation figure and inflation falls

 

[Maccapacca]

What CSH Code (code for sustainable homes) is the house built for it should be 3 but could be 5, there is a massive difference between the two, worth finding out, who is the housebuilder? are they a volume builder or a quality builder?

What guarantee do you get? NHBC do 10 & 12 year guarantees, not that they are worth much.

Is it built to lifetime homes standards?

Whats the frame made of? timber / block / lightweight steel?

What windows have been installed PVCu / timber / alu / composite

All those should give you an idea of quality, a timber framed code 3 house that's not lifetime homes with PVCu windows from a volume builder is a world away from a block code 5 house with lifetime homes and composite windows from a quality builder

 

[dave1983]

I just spoke to letting agents and the Fees in total 2k - 2.5K thats a hell of a lot of money.

 

[panthro]

Mate of mine just got 25k off a new build in Basingstoke. From 275 to 250. Very nice place too, 4 bedroom detached town house.

 

[BennyC]

My garden is suprisingly large to the size of house, I would say the same if not bigger than the 5 bedroom houses on site. We were very lucky to get the plot, it is in a very desirable part of the estate.

It was great to just choose everything for the kitchen etc. Be warned though they charge through the roof for anything additional. For example £600 for the kitchen floor to be tiled, we got it done for £200, tiles for the walls £600 we are getting it done for £300. Etc etc

It all depends at which stage they are at with the build. For example now they are nearing the end and sold most of the houses off, the last few are being sold with extras / discounts etc so they can get off site, prior to this no offers given!

Cheers, I'll see how much they want to bend me over for tiles, carpets etc and also have a look at the variety and quality. Like you say I may well find better quality and have it come out cheaper.

What CSH Code (code for sustainable homes) is the house built for it should be 3 but could be 5, there is a massive difference between the two, worth finding out, who is the housebuilder? are they a volume builder or a quality builder?

What guarantee do you get? NHBC do 10 & 12 year guarantees, not that they are worth much.

Is it built to lifetime homes standards?

Whats the frame made of? timber / block / lightweight steel?

What windows have been installed PVCu / timber / alu / composite

All those should give you an idea of quality, a timber framed code 3 house that's not lifetime homes with PVCu windows from a volume builder is a world away from a block code 5 house with lifetime homes and composite windows from a quality builder

Thanks for that, I'll put those questions to them

I know they come with a 2 year warranty and NHBC 10 year guarantee. I'll see if upgrading the materials or having it built as a higher class building is possible and what the increase in cost would be.

Mate of mine just got 25k off a new build in Basingstoke. From 275 to 250. Very nice place too, 4 bedroom detached town house.

Sounds good!

I think my first initial offer would be something like:

-20% (£275k down to £220k)
Garden turfed, properly!
Decent deal/discount on the nicer fixtures & fittings
Best carpets/tiles (providing I liked them)
Alarm

If they offered me that or between 15-50% off then I'd probably be very interested in putting a deposit down. That'd make me a cash buyer too at the price and I could complete any time from April, assuming the plot I was after was built. And I could slap a 5% deposit down too or at least the plot reservation fee initially.

 

[Rotty]

unfortunately unless they are real desperate I think that is super ambitious

 

[Bes]

it doesn't need to, if prices stabalise then after a year they are out of the inflation figure and inflation falls

Yes but the cost of living relative to wages stays higher, as I noted in my previous post. That makes less money available for mortgages

 

[Rotty]

Yes but the cost of living relative to wages stays higher, as I noted in my previous post. That makes less money available for mortgages

yes but if inflation reduces due to these factors coming out then there is less pressure on interest rates

 

[BennyC]

unfortunately unless they are real desperate I think that is super ambitious

I don't disagree! But if you don't ask you don't get

As mentioned my position is one where I'm very much in control. Living at home after finishing Uni so it's no skin of my nose to stay where I am and continue saving a large portion of my salary.

 

[Nexus]

We bought a new build flat in early 2009, so it was basically finishing construction before the whole credit crunch.

The majority of the flats were sold in their first major public viewing and we had to put a deposit down straight away. There wasn't really any room to negotiate on the price, as they had been valued at a fair price for the local market and also with so many people seeking them out, they weren't going to take less.

There were only maybe a couple not so nice options which didn't go straight away, such as show flats and such. So in that case they may have been a bit more open to it.

I think I'm just trying to say is that if you think people will be going for the flats too, then you are best paying for it if you want it.

Also I'd add that insulation is really good. Infact I'm amazed at how good the sound proofing is. You don't hear the neighbors and I myself make a fair racquet now and then and have never had anyone complain either. Even when my neighbors have a loud party I can barely hear them and get to sleep.

 

[Maccapacca]

Thanks for that, I'll put those questions to them I know they come with a 2 year warranty and NHBC 10 year guarantee. I'll see if upgrading the materials or having it built as a higher class building is possible and what the increase in cost would be..

Also ask them how the achieved their SAP calculations ask to see the calculations, it's a points based system that has lots of easy wins, water buts, compost bins, tidy driers over baths etc, if it's a quality developer builder they may have got the points from better insulation and more efficient heating etc rather than a load of plastic stuff stuck to the house.

Feel free to PM me anything further it's my bread and butter

 

[BennyC]

A little bit of research pays off:

http://www.propertysnake.co.uk/site/detail/34155874

A different property on the same development dropped £20,000 (7.5%) in November 2010, and then put up £10,000 last month. Useful bit of information to have as ammo for haggling

 

[mole90]

I think my first initial offer would be something like:

-20% (£275k down to £220k)
Garden turfed, properly!
Decent deal/discount on the nicer fixtures & fittings
Best carpets/tiles (providing I liked them)
Alarm

If they offered me that or between 15-50% off then I'd probably be very interested in putting a deposit down. That'd make me a cash buyer too at the price and I could complete any time from April, assuming the plot I was after was built. And I could slap a 5% deposit down too or at least the plot reservation fee initially.

Might as well aim high but I'll be surprised if you get anywhere near that! I got -20% (50k) off of a Bryant (Taylor Wimpey) property but that was in the first couple of months of 2009 so rock bottom in the recession.

Pretty good chunk of money off the list price but any of the 'premium' interior finishes were extra, no carpets or extra appliances.

 

[beamer]

Link to source please, those numbers need investigation.

2010 Q4 £163,244 £163,244 £167,898
2010 Q3 £167,354 £169,126 £166,710
2010 Q2 £168,719 £171,269 £165,531
2010 Q1 £162,887 £168,515 £164,359

2009 Q4 £162,116 £169,573 £163,197
2009 Q3 £160,159 £169,479 £162,042
2009 Q2 £154,066 £164,413 £160,896
2009 Q1 £149,709 £161,051 £159,757

soory the columns are , price , "real price" and inflation adjusted

looks stagnant to me

re interest rate predictions I am basing them on fols that know more than me and you, they are actually saying 1.25% by end 2012, not the end of world, predictions can be wrong but they can also be wrong in both directions

with minor growth forecast then jobs market will be stable at worst in private sector, the worst has alreasy happened

property is not too expensive in a lot of the country, it is perfectly affordable here

the house price to wage ration is nowhere near as important as wage price to mortgage payment ratio which is lower than the 1990s I believe

the doom forecasters will have you ebleive that the world will always end soon, as bad as a lot of things are at the moment the majority of folks are still doing fine but there is no news in reporting that