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MartynGT4

2 Buy Or Not 2 Buy

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Hi,

I'm a 34 year old FTB'er who's been looking at buying a new build in Chippenham 'off plan'. The house is (or rather will be when its built) a end of row four bed three storey semi detatched town house. It has three very good sized bedrooms including two en-suites and a nice sized master bathroom plus one smaller (but perfectly useable) bedroom. It has a reasonable sized garden at 7m x 12m and a single garage on the side of the house. The builders initial asking price was £235k which i've negotiated down to £200k with fitted carpets and turfed garden. I'm borrowing £190k to buy this property which wont be ready till mid December.

Here is a link to the builders website for the house design etc..

http://www.georgewimpey.co.uk/GW/templates...ropName=Newnham

Had a look around the part completed show home today and I liked it a lot, the kitchen and lounge weren't fantasticly big but plenty big enough for our needs, however the rest of the house is really good and IMO has quite a bit of wow factor. The house will have a fantastic view of the surounding area and the housing development is full of four and five bedroom semi's and detached houses. Its a very quiet area indeed and appears to be quite sought after.

My question is, am I mad to buy this house now? :huh:

Thanks

Martyn

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Hi,

I'm a 34 year old FTB'er who's been looking at buying a new build in Chippenham 'off plan'. The house is (or rather will be when its built) a end of row four bed three storey semi detatched town house. It has three very good sized bedrooms including two en-suites and a nice sized master bathroom plus one smaller (but perfectly useable) bedroom. It has a reasonable sized garden at 7m x 12m and a single garage on the side of the house. The builders initial asking price was £235k which i've negotiated down to £200k with fitted carpets and turfed garden. I'm borrowing £190k to buy this property which wont be ready till mid December.

Here is a link to the builders website for the house design etc..

http://www.georgewimpey.co.uk/GW/templates...ropName=Newnham

Had a look around the part completed show home today and I liked it a lot, the kitchen and lounge weren't fantasticly big but plenty big enough for our needs, however the rest of the house is really good and IMO has quite a bit of wow factor. The house will have a fantastic view of the surounding area and the housing development is full of four and five bedroom semi's and detached houses. Its a very quiet area indeed and appears to be quite sought after.

My question is, am I mad to buy this house now?  :huh:

Thanks

Martyn

If you are really stretching yourself to buy it, now could be a bad time. If it is well within your price range and you see yourself there for a long while perhaps it's okay. Might be worth trying to knock another few k off though.

frugalista

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Personally I'd be very wary of new build at the moment. On the back of density dictats from the govt. and under prevailing general pricing the builders can build this stuff with postage size front gardens and poor sized back gardens on cramped estates and people will still buy. This however, may change with a general market change to one of slump rather than growth and the resaleability of this latest crop of new build is untested.

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I'm borrowing £190k

My question is, am I mad to buy this house now?  :huh:

It's amazing how desensitised we have become to borrowing huge sums like this. In 1998 you could have probably bought an equivalent house for £60K and now you are considering taking out a £190K mortgage!! 7 years ago this would have bought 3 houses! Doesn't that tell you that it's overpriced?

Wimpey homes, or any new build home by similar company are absolute cr@p - my parents had one for a couple of years and the lack of quality is incredible, forget sound proofing in these places, you can hear everything, everywhere.

Do you think you could afford to pay for the mortgage if IRs were 7% (the longterm average)?

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It's a 4 bedder, so I presume this is to be your family home for the time you have kids etc, I assume that you won't have more than 2/3 kids so you shouldn't need to move until you retire and downsize say 30 years from know ( going on you being 34 ).

Provided that you i.) like the house, which I gather you do and can see yourself heppily having a family there, local schools okay etc. ii) you can afford this place now and with IR at 12% on your mortgage if/when that were to happen and iii) given your career etc you have good reason to believe that the chance of redundancy is remote. I would see no reason not to buy the place, provided that you are buying it for it's utility value i.e. a place to live in that you like, rather than as an investment.

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A few other things about the bulk of current new build.

Due to the plot sizes it is highly unlikely that any meaningfu extension can be done - so little scope to change use or improve the property.

New build usually has a new build premium attached to it - for some reason people will pay more for a spanking new house off the developer, just like a new car and take the hit quite why I don;t know as the first owner also has to have all the problems ironed out when they move in - which there seem to be in many cases.

Also if the developer has dropped their price then that is the market value (new build price) as they cannot sell the house to anybody else at a higher figure, otherwise they would.

Areas with high number sof new builds or new build developments may well have high concentrations of highly geared owners compared to the rest of the housing stock, this in itself can seriously affect resale prices should you need to sell during a market downturn. Bradley Stoke (N. Bristol) is a prime (if extreme) example of such a situation from last time around.

Do you know much of the rest of the development has been sold, what prices they went for (Nethousprices etc) and how much has been bought off plan and is still lying empty?

Edited by OnlyMe

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Hi,

I'm a 34 year old FTB'er who's been looking at buying a new build in Chippenham 'off plan'. The house is (or rather will be when its built) a end of row four bed three storey semi detatched town house. It has three very good sized bedrooms including two en-suites and a nice sized master bathroom plus one smaller (but perfectly useable) bedroom. It has a reasonable sized garden at 7m x 12m and a single garage on the side of the house. The builders initial asking price was £235k which i've negotiated down to £200k with fitted carpets and turfed garden. I'm borrowing £190k to buy this property which wont be ready till mid December.

Here is a link to the builders website for the house design etc..

http://www.georgewimpey.co.uk/GW/templates...ropName=Newnham

Had a look around the part completed show home today and I liked it a lot, the kitchen and lounge weren't fantasticly big but plenty big enough for our needs, however the rest of the house is really good and IMO has quite a bit of wow factor. The house will have a fantastic view of the surounding area and the housing development is full of four and five bedroom semi's and detached houses. Its a very quiet area indeed and appears to be quite sought after.

My question is, am I mad to buy this house now?  :huh:

Thanks

Martyn

WOW, what a sales pitch.....it always sounds like YOU WORK FOR WIMPY'S B)

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Hi,

I'm a 34 year old FTB'er who's been looking at buying a new build in Chippenham 'off plan'. The house is (or rather will be when its built) a end of row four bed three storey semi detatched town house. It has three very good sized bedrooms including two en-suites and a nice sized master bathroom plus one smaller (but perfectly useable) bedroom. It has a reasonable sized garden at 7m x 12m and a single garage on the side of the house. The builders initial asking price was £235k which i've negotiated down to £200k with fitted carpets and turfed garden. I'm borrowing £190k to buy this property which wont be ready till mid December.

Here is a link to the builders website for the house design etc..

http://www.georgewimpey.co.uk/GW/templates...ropName=Newnham

Had a look around the part completed show home today and I liked it a lot, the kitchen and lounge weren't fantasticly big but plenty big enough for our needs, however the rest of the house is really good and IMO has quite a bit of wow factor. The house will have a fantastic view of the surounding area and the housing development is full of four and five bedroom semi's and detached houses. Its a very quiet area indeed and appears to be quite sought after.

My question is, am I mad to buy this house now?  :huh:

Thanks

Martyn

As a matter of interest, have you worked out the cost per square foot if you purchase at £200k? :huh: This can sometimes be a bit of an eye-opener.

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You're borrowing 190k and putting 10k down as a deposit?

That's only 5% deposit. Personally, it's my view that you should save until you can at least put down 10% (15% would be ideal).

Anything else sounds too risky to me.

(awooga)

PS.

End of row should be cheaper IMO due to a) colder and more vulnerable to the elements and B) much more vulnerable to burglary.

Edited by DonnieDarker

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Flip it could make you a fortune!!

Could loose me one too.. lol

Would you still be able to afford your mortgage repayments when the interest rates go up?

To a point yes, I have a very good job with an income that is way above average however everyone has they're limit I guess.

Personally I'd be very wary of new build at the moment. On the back of density dictats from the govt. and under prevailing general pricing the builders can build this stuff with postage size front gardens and poor sized back gardens on cramped estates and people will still buy. This however, may change with a general market change to one of slump rather than growth and the resaleability of this latest crop of new build is untested.

Good point, hadn't really thought about that..

It's a 4 bedder, so I presume this is to be your family home for the time you have kids etc, I assume that you won't have more than 2/3 kids so you shouldn't need to move until you retire and downsize say 30 years from know ( going on you being 34 ).

Provided that you i.) like the house, which I gather you do and can see yourself heppily having a family there, local schools okay etc. ii) you can afford this place now and with IR at 12% on your mortgage if/when that were to happen and iii) given your career etc you have good reason to believe that the chance of redundancy is remote. I would see no reason not to buy the place, provided that you are buying it for it's utility value i.e. a place to live in that you like, rather than as an investment.

Definately buying the house as a home not an investment and from what we know and have seen, we would be happy there.

A few other things about the bulk of current new build.

Due to the plot sizes it is highly unlikely that any meaningfu extension can be done - so little scope to change use or improve the property.

New build usually has a new build premium attached to it - for some reason people will pay more for a spanking new house off the developer, just like a new car and take the hit quite why I don;t know as the first owner also has to have all the problems ironed out when they move in - which there seem to be in many cases.

Also if the developer has dropped their price then that is the market value (new build price) as they cannot sell the house  to anybody else at a higher figure, otherwise they would.

Areas with high number sof new builds or new build developments may well have high concentrations of highly geared owners compared to the rest of the housing stock, this in itself can seriously affect resale prices should you need to sell during a market downturn. Bradley Stoke (N. Bristol) is a prime (if extreme) example of such a situation from last time around.

Do you know much of the rest of the development has been sold, what prices they went for (Nethousprices etc) and how much has been bought off plan and is still lying empty?

The development is quite new, I believe one other Newnam was sold last week and about four other plots have sold although they are bigger etc.

God my head is spinning now and i've just had the building society on the phone telling me that my offer letter is in the post.. decisions decisions..

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WOW, what a sales pitch.....it always sounds like YOU WORK FOR WIMPY'S  B)

Agreed. This sounds like a bit of viral marketing from Wimpey. Interestingly it may backfire on Wimpey as their name (Wimpey) will be associated with HousePriceCrash on google when peopkle search for Wimpey Wimpey Wimpey.

If you are a genuine buyer and not someone from Wimpey then my genuine answer is not to buy a new build of any description (not just Wimpey). Any new build, along with any single bedroom flat will suffer largest falls if/when they occur. I can't comment on the value of the property as I don't know the area. But clearly if Wimpey are prepared to negotiate the discount from the original price then you should consider why Wimpey are prepared to do that if the market was anything but stagnant or falling.

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Agreed. This sounds like a bit of viral marketing from Wimpey. Interestingly it may backfire on Wimpey as their name (Wimpey) will be associated with HousePriceCrash on google when peopkle search for Wimpey Wimpey Wimpey.

If you are a genuine buyer and not someone from Wimpey then my genuine answer is not to buy a new build of any description (not just Wimpey). Any new build, along with any single bedroom flat will suffer largest falls if/when they occur. I can't comment on the value of the property as I don't know the area. But clearly if Wimpey are prepared to negotiate the discount from the original price then you should consider why Wimpey are prepared to do that if the market was anything but stagnant or falling.

Martyn,

Tread carefully. I live 10 miles from Chippenham and know the location well. It's not a bad place, but certainly not one of the better towns to live in on the M4 corridor.

Some points from personal experience

1) New builds can be a nightmare. I bought a brand new 3 bed detached in Swindon

It was major hassle with some of the problems I had. I also bought it in late 2001

and because I paid a premium, made literally nothing on house price inflation when I

sold. Make sure EVERYTHING is intact. Get your own surveyor too, don't use theirs!

2) Ensure that your mortgage is not more than 3 times yours and your partners

joint income. As suggested, you would really be better off with at least 5% deposit.

This will protect you from negative equity if you are forced to sell for any unforeseen reason.

Weigh all this up, and also take into consideration Interest Rates rising and how this

will affect your mortgage payments.

Hope you make the right decision for you and your family.

Ozz

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Agreed. This sounds like a bit of viral marketing from Wimpey. Interestingly it may backfire on Wimpey as their name (Wimpey) will be associated with HousePriceCrash on google when peopkle search for Wimpey Wimpey Wimpey.

If you are a genuine buyer and not someone from Wimpey then my genuine answer is not to buy a new build of any description (not just Wimpey). Any new build, along with any single bedroom flat will suffer largest falls if/when they occur. I can't comment on the value of the property as I don't know the area. But clearly if Wimpey are prepared to negotiate the discount from the original price then you should consider why Wimpey are prepared to do that if the market was anything but stagnant or falling.

Don't worry folks, I don't work for Wimpey..

The thing is, I wouldn't be considering doing this now but the house is nice and the area is lovely. I hear what your all saying and I agree with a lot of the things you are saying. I wouldnt be posting on here asking these questions if I didnt have some doubts, its a lot of money and the market is scary.

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My partner's father is an architect and says much the same: new builds are cheap for a reason. The construction is usually below par and they sidestep this by selling them with the spin of being brand new and untainted. Within a couple of years that soon wears off though.

I'm not saying don't buy...just things are cheaper for a reason...inevitably. I'm sure you thought this through anyway.

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My partner's father is an architect and says much the same: new builds are cheap for a reason. The construction is usually below par and they sidestep this by selling them with the spin of being brand new and untainted. Within a couple of years that soon wears off though.

I'm not saying don't buy...just things are cheaper for a reason...inevitably. I'm sure you thought this through anyway.

I agree, new build house quality isn't great is it. Thing is, i'm buying off plan and the building wants to exchange contracts ASAP (applying pressure already!) so I wont really know exactly what i'm getting till I see the house just before completion to create a 'snagging' list etc. Also, I asked the builder why they dropped there price by £35k (with very little pressure from me I might add) and they said i was just really lucky and that nobody else is getting one for that price!. Now, i'm not stupid, I'm a highly paid systems architect for gods sake, I dont believe for one second that i'm the only person who's gonna get one of those houses for £200k. My partner will be devastated if I do but i'm thinking more and more about pulling out and finding somewhere nice to rent for a few years..

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Take your time considering all the options. Don't let Wimpey, your partner or us talk you into something you're not sure about.

And if you waver a bit, they just might drop the price a bit more :D

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I know someone who bought a new flat in Wokingham about 1 year ago. list price was £210k with the developer offering stamp duty, carpets and white goods. He said the most he could afford was £167k, it only took the develpoer 1 week to accept.

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Tough man, tough. "Devastated" is not a destination you want to send a loved one!

The very least I think you should consider doing - if you haven't already - is negotiating more of a discount.

Also the £5K deposit. I said it already, I don't like that.

If that is because that is all you have sapre at the moment my advice would be 'don't buy' because it would suggest you don't have much of a safety net in things go pear shaped.

House prices crashing is something we hope for here but is not guaranteed but there seems to be a broad concensus that the country will go into recession in the next couple of years. That could mean pain.

You have to weigh up the pros and cons - an obvious statement if ever there was one! If partner is likely to be devastated then I think you should prepare your evidence for not buying. :rolleyes:

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You're borrowing 190k and putting 10k down as a deposit?

That's only 5% deposit. Personally, it's my view that you should save until you can at least put down 10% (15% would be ideal).

Anything else sounds too risky to me.

(awooga)

PS.

End of row should be cheaper IMO due to a) colder and more vulnerable to the elements and B) much more vulnerable to burglary.

I don't think you can look at it in terms of percentages of deposit.

What's important is what the amount you borrow is going to cost you, today and if IRs rise in the future, at least you should be able to afford a repayment mortgage if rates were 7% which is the longterm average. In our low inflation environment the debt you take on today will be almost as big in 5, even 10 years time. What could IRs be then? The answer is nobody knows so at least prepare for them being 7%

Really you should work out what you are OK with borrowing and then the difference is the deposit that you need. Unfortunately most people don't seem to do this, they've been taking out Interest Only mortgages and only factoring in payments at todays low IRs but then they are stupid and risk getting into serious trouble.

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My partner will be devastated if I do but i'm thinking more and more about pulling out and finding somewhere nice to rent for a few years..

Very wise.

What have you got to lose? Prices aren't going up, thats for sure.

I firmly believe the next 12 months is going to be 'CRASH TIME'. Prices are already coming down, just the majority don't know it yet. HPI has come crashing down from over 20% to just about 0% now and just like last time it will probably go on down into the -ve territory so from now to mid next year, given that it is also the seasonally slower period for the housing market I firmly believe we are going to start seeing the 'real' movements in house prices downwards. The least you could do is wait 1 year.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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