Buying a house - second thoughts

Kemik

Kemik

Kemik

Soldato
Joined
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Widnes
Hi all,

I've put down a holding deposit on a new build and have yet to sign anything other than the reservation. I have however paid for surveys, £500 holding deposit and £80 for some extra lighting to be installed.

However, since looking online it seems to be that while other building companies are charging similar prices, if not more, other houses that are second hand in nearby areas (e.g not as nice area but one-off 3 to 5 year old builds) are going for 10% less than the house I'm buying. I'm slightly concerned that my price won't hold up if I go to sell it in 3 years time.

Obviously it's something that is difficult to predict but I keep getting told now is the best time to buy in a long time due to the mortgage rates and Help To Buy scheme. Would I be able to buy the same priced house in two years with a 10% deposit compared to 25%? Probably not, the interest would be too high.

Interested to hear thoughts. Will the valuation give me a better idea of this?

For those who know Reading, it's new builds at Three Mile Cross.
 
Hi there,

You'll be paying more for a new build for exactly the reason that it's "Brand New".
My personal preference would be to buy a 'second hand or residential' (same thing) house.
You'll be buying in an area thats already established and you'll more than likely get more house for your money.

You can get a 95% mortgage on a second hand house now with new products that have recently been released.
In my opinion (as an estate agent) now is a great time to buy, I can see the prices going up at least 20% in the next 3/4 years.

Confidence is coming back, banks are starting to relax lending, BoE base rate is likely to stay the same for the next 3 years.

But at the end of the day it's your choice and it's whatever you're happy with.
 
Simple answer is yes you do pay more for a new build.

If the premium is recoverable is up to you in regard to area, build phase and company build cycle.
 
As I always bang on about, depends on the development and the property you choose.

My folks have bought a fair few new builds over the years and have never paid 'more' than an existing equivalent property, and have always sold for more than they paid.

It's hard to say in this situation, you say that the existing houses are in a not as nice area, how much worse is the area, enough to justify a 10% drop?

We've looked around in the areas we want to be living in and just cannot get what we want for our money apart from the new build we're buying, although we did get a good deal on it which I think we were very very lucky with.
 
Sounds like it's the same development I'm about to complete on...

For what its worth, it seems house prices in the area are going up. Yes the new build are expensive but I'm hopeful they will at least hold their value over the next 5 years, and the help to buy scheme really does make a huge difference on mortgage rates (we'll be paying £790 per month as opposed to £1200 if we had put in the 10% deposit without the help to buy scheme).

It also depends which developer as Ev0 has said, I know there are a few working the area, Bovis being the main ones. We are going with one of the smaller ones on a non social housing part of the development, and they have been very good so far.
 
Jano said:
Sounds like it's the same development I'm about to complete on...

For what its worth, it seems house prices in the area are going up. Yes the new build are expensive but I'm hopeful they will at least hold their value over the next 5 years, and the help to buy scheme really does make a huge difference on mortgage rates (we'll be paying £790 per month as opposed to £1200 if we had put in the 10% deposit without the help to buy scheme).

It also depends which developer as Ev0 has said, I know there are a few working the area, Bovis being the main ones. We are going with one of the smaller ones on a non social housing part of the development, and they have been very good so far.
Click to expand...

Mine's the Bellway development. I'm more worried about a correction in the market as the economists seem to be saying leave some room in wages for an interest rate move (mine will be fixed for 2 years and I expect to be on more money by then) and house prices are currently in a bubble.

Difficult to predict I suppose!
 
Same as me then with Bellway. Guess I might have an OCUK neighbour!

Just as a word of warning, Catalyst (help to buy agents) have been awful and have held things up for a few weeks now.
 
Jano said:
Same as me then with Bellway. Guess I might have an OCUK neighbour!

Just as a word of warning, Catalyst (help to buy agents) have been awful and have held things up for a few weeks now.
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Indeed! What style are you buying?
 
Just one of the two beds, the Wilde. We originally wanted a three bed but they had all gone and to be honest we would have been stretched to our limit to afford it.
 
Jano said:
Just one of the two beds, the Wilde. We originally wanted a three bed but they had all gone and to be honest we would have been stretched to our limit to afford it.
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Ah, I'm in a Yeats - two bed but smaller. Plot 66. Move in January :)
 
Jesus just looked at the prices for those, I like new builds but even I'd cry paying that for a new 2 bed box :(

Guess that's the going rate for stuff like that up there though?
 
Yea it is unfortunately, it's ridiculously expensive here :(

As an example where I currently live in Twyford, on the estate next to me, theres 1 bed terraced houses for more than these two beds.

We are in plot 118, if Catalyst actually respond to anyone we should be in a week on friday.
 
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Yup seems loads to me living down here in the relative middle of nowhere.

2 bed semi like that is about 140/150k in the immediate area we live in at the moment.
 
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Kemik said:
Would I be able to buy the same priced house in two years with a 10% deposit compared to 25%? Probably not, the interest would be too high.
Click to expand...

House prices move inversely with interest rates.

There's only one way interest rates are going. The government is just buying some time with its housing schemes.
 
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