luvadealme Report post Posted January 30, 2011 Hi, Anyone got any opinions on buying new builds? Am looking at a 1 bed flat in London, that I know I could live in for a few years, then sell or rent out as opposed to continue renting as I do now (my rent would equal the same as a repayment mortgage). Thoughts? Are they a good buy? Do they lose value quicker than traditional converted flats? The area is always in demand for rent so I don't see it being too risky if I pay the right price. Is it harder to get a mortgage for these though? Thanks, J Quote Share this post Link to post Share on other sites
PbroAgent Report post Posted January 30, 2011 Hi, Anyone got any opinions on buying new builds? Am looking at a 1 bed flat in London, that I know I could live in for a few years, then sell or rent out as opposed to continue renting as I do now (my rent would equal the same as a repayment mortgage). Thoughts? Are they a good buy? Do they lose value quicker than traditional converted flats? The area is always in demand for rent so I don't see it being too risky if I pay the right price. Is it harder to get a mortgage for these though? Thanks, J New builds are usually overpriced and can lose about 15% of their value on the day you move in, much like a new car when driven off the forecourt. For this reason banks usually require you to have a bigger deposit if they are to lend you a mortgage (80% as apposed to 90% LTV). As they are purpose built there can be advantages over a converted property, also you may get to chose the internal decor and fixtures and fittings. As with any purchase remember the old adage "caveat emptor". Good luck Quote Share this post Link to post Share on other sites
