New Build - First Time Buyers

We went with a homebuy scheme, and are happy with it.

We bought off-plan phase 1, £153k for a 1-bed, and the 1-beds for sale now in the final phase are going for £200k!

That's a 33% rise in 3 years!

So even though 25% of the sale price goes back to the scheme, we are still benefiting massively, whereas without the scheme we wouldn't have been able to get the place at all.
 
With the new buy scheme IE the 20% offered by the government After five years the government interest-free loan attracts a fee of 1.75%.
This increases every year by RPI inflation plus 1%.

You cannot pay off the government loan until the mortgage is repaid in full or the home is sold.

So if the house increases in value the government still take 20% of what the house sells for.

That in itself is a scary prospect to me, my wife and I were seriously looking at the scheme ourselves. Thinking we would save a massive chunk.
 
Hi Krooton,

Thats all and good, but you try selling ;) The fact that there are new houses still being built on the estate will attract buyers to them rather than your own property. Thats not to say in another couple of years once the estate is finished and all sold you can and will make some profit looking at your location.

Guys im only going on what we have been advised.

We were swayed away from the scheme by three independent mortgage advisers.
They had no affiliation with the builder in anyway.
 
With the new buy scheme IE the 20% offered by the government After five years the government interest-free loan attracts a fee of 1.75%.
This increases every year by RPI inflation plus 1%.

You cannot pay off the government loan until the mortgage is repaid in full or the home is sold.

So if the house increases in value the government still take 20% of what the house sells for.

That in itself is a scary prospect to me, my wife and I were seriously looking at the scheme ourselves. Thinking we would save a massive chunk.

That's not what we've been told at all. We've been told we pay off the interest on the loan at £69 a month after the 5 years are up, and this may increase each year by RPI inflation plus 1%.

We were also told we can pay off the government loan at any point, however if we decide not to they will take 20% of the sale of the house.
 
Right, done some digging and it seems you are right, however you can pay off 10% of the loan at any point. It makes very little difference for us though as the fee would pay for the equity loan is so much lower than what we would pay for the higher mortgage it would be ridiculous for us to not make use of it.
 
Hi Jano,

That's fair enough fella, different people will tell you different things. I heard enough to want to stay away from it though.

Anyways good luck with the house fella, check out the snagging forums for some good advice on there :)
 
I'm looking at this sort of think too at the moment in Clanfield. Current house valued at £205k and looking at a David Wilson Home for £289k

Just how good / bad are DWH or Bovis
 
I've been looking at the help to buy scheme and a leaflet I have in-front of me states 'The equity loan can be repaid at any time within the 25 years (or the terms of the mortgage), or on the sale of the property'

Which seems to go against what other posters have stated?
 
I've been looking at the help to buy scheme and a leaflet I have in-front of me states 'The equity loan can be repaid at any time within the 25 years (or the terms of the mortgage), or on the sale of the property'

Which seems to go against what other posters have stated?

See the below bold bit, staircasing is done at current value, not purchase value.

Following the purchase you can choose at any time to make voluntary part repayments (‘staircasing’ or a full repayment) of the Help to Buy
assistance at the prevailing market value.
The minimum voluntary repayment is 10% of the market value at the time of repayment.

http://www.helptobuy.org.uk/wp-content/uploads/2013/06/Help-to-Buy-equity-loan-buyers-guide.pdf
 
Still pondering the DWH and help to buy. Just a question of how good / bad new builds are.

Totally depends on the developer.

A social housing provider also selling shared ownership will be of better quality than a developer selling shared ownership.

A social housing provider will have their own clerk of the works and will be built by someone else, a developer won't normally it's a bit like marking your own exams.
 
I have a pretty poor opinion of new builds after looking at quite a few developments recently.

Not only are the houses small, but the plots are tiny too. Back gardens little bigger than a postage stamp, often no front garden at all. You're lucky if you get a 1 car driveway and the garage is usually too small to fit a car in. The roads in these estates are as thin as possible. Add that to the lack of parking and and high density, these estates end up looking like car parks on an evening when everyone is at home.

Plus, in some cases the build quality is poor. The very newest estates can look kind of pleasant in their stark uniform lego-land look, but in the estates built a year or two ago they look a bit scruffy. Can't see them holding their value at all once they're 10-20 years old and competing with houses on estates built in the 80's and 90's which in comparison are far more attractive with far bigger plots.
 
Surprised this thread is still rumbling along!

We are almost there. Hopefully completing at the end of the month, ended up getting £5k off, gardens turfed, all carpets and flooring in kitchen and bathrooms, and integrated appliances in the kitchens. Build quality is generally ok, had a builder friend round snagging and other than a few bits of tiling and some of the doors not closing properly all is ok. Semi-detached two bed, roads are fine, parking for 3 small to medium cars, tiny front garden (more just a patch either side of the path to front door), but a decent sized back garden, which has caused our only issue with the developers, as they want to charge an admin fee of £120 to give us permission for a shed.

Our main issue however has been with the help to buy agents. We got the authority to proceed from them early June, which has a 3 month time period. We've been trying to exchange now for almost a week and a half, and the only outstanding point has been the final authority from help to buy, who have been stalling, unresponsive and generally being a pain. Don't know if this is standard procedure but it has caused us some grief as we just want it all done now.
 
I have a pretty poor opinion of new builds after looking at quite a few developments recently.

Not only are the houses small, but the plots are tiny too. Back gardens little bigger than a postage stamp, often no front garden at all. You're lucky if you get a 1 car driveway and the garage is usually too small to fit a car in. The roads in these estates are as thin as possible. Add that to the lack of parking and and high density, these estates end up looking like car parks on an evening when everyone is at home.

Does depend on the development though, we're buying one in a small development, that's in the corner of a much bigger one over all.

Our development (well, field) has been designed to be a bit different from the rest with half the number of houses originally planned in the space, all detached, all with minimum of 2 parking spaces etc.

Ours has a driveway that you could fit 4 cars on, and a proper sized double garage (think it's approx 6 metres square give or take).

Garden is pretty small, but to be honest suits us as not really garden people. However it's not overlooked and has plenty of privacy.

Think we've picked the best plot as well, backing onto existing gardens/housing so that'll not change and just the general aspect and privacy.

Only annoying thing has been waiting for the thing to be built!

My folks have moved into somewhere similar in the last year and again never had the usual grumbles, pretty big garden too which I wouldn't fancy having to maintain!
 
Ours is almost exactly the same, a smallish development by a "smaller" builder on a much larger development handled by Bovis. Other than attempting to fob off our complaints about the tiling (the monkey put the border on upside down in a couple of places, sales woman tried to suggest it was random), they have been very accommodating.
 
I popped in to the DWH site tonight as I heard the garden fences have gone up so got a better indication of size etc.

Re snagging, I'd get a 3rd party snagging company to come round and do it

Getting tempted. However help to buy extends to non new next year...
 
I have a pretty poor opinion of new builds after looking at quite a few developments recently.

Will give my experiences based on my estate:

Not only are the houses small
Bit of a generalisation I feel, if you spend enough money you will find a big enough house for most people's needs. Even our smallest bedroom could comfortably fit a double bed plus a single bed and furniture. The only room I would consider small really is the bathroom, but there are 2x ensuites and a downstairs loo so it rarely gets used unless we want a bath anyway.

, but the plots are tiny too. Back gardens little bigger than a postage stamp, often no front garden at all.
Agreed - townhouses seem quite common to allow more rooms per plot. Even the bigger houses on our estate (5 bed) have relatively small gardens.

You're lucky if you get a 1 car driveway and the garage is usually too small to fit a car in.
Maybe a luxury estate or 4x4, lol :) My wife's car (Seat Leon) fits in the garage even with a barbecue, bedframe, matress, bags of crap etc piled up at the back, with an allocated offroad parking space in front.

The roads in these estates are as thin as possible. Add that to the lack of parking and and high density, these estates end up looking like car parks on an evening when everyone is at home.
Seems to be the case with many urban streets in the UK; our street doesn't have noticably fewer parking spaces available than lots of other places with no parking restrictions.

Plus, in some cases the build quality is poor
Yes, goes with the territory with new builds. At least you are covered in the short term though (2 years snagging, 10 years nhbc).

The very newest estates can look kind of pleasant in their stark uniform lego-land look, but in the estates built a year or two ago they look a bit scruffy.
Ours is about 5 years old (although being extended at one end over the past couple of years). I think it looks smarter than the majority of older estates aside from the odd house like mine where the owner can't be arsed to maintain the front garden properly :) Depends on tastes of course - people who want 'rustic charm' need not apply, but I can't think of anywhere locally that looks nicer for the same money.

Can't see them holding their value at all once they're 10-20 years old and competing with houses on estates built in the 80's and 90's which in comparison are far more attractive with far bigger plots.
Again goes with the territory - new builds often don't hold their value once they are 2 years old never mind 20 :) I live in a new town that was largely developed in the 90s so it is fairly easy to compare, the older houses do tend to have bigger plots. When we moved here there was a house built around 1997 we looked at which I liked but my wife didn't, I think it would have been a better buy than what we ended up with but then it cost more money so one could argue that the fact 80s/90s estates are more attractive is reflected in the price.
 
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