Buying a house - second thoughts

[Kemik]

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.

 

[Kemik]

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.

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!

 

[Kemik]

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.

Indeed! What style are you buying?

 

[Kemik]

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.

Ah, I'm in a Yeats - two bed but smaller. Plot 66. Move in January