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Off-Plan Dreaming 2013

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It just occurred to me that I haven't heard of many people buying flats "off plan" for some time.

BBC says off-plan is seeing a new pickup. http://www.bbc.co.uk...siness-23547988

Even young trainee-solicitors (guaranteed position after finished all your seats?) come to the confident conclusion more HPI is on the way. Their decision to understand the market and commit. And that even if we did see HPI, that they think it will somehow be to their own gain, if they ever want to upsize from a flat.

6le5.jpg

She is also confident that it will be a sound financial investment. "I think in the next few years we will see property prices rise and we will get the benefits," she says.

The developer for the offplan development mentioned in the story seems to offer almost the whole catalogue of help-to-afford schemes, including Help-To-Buy, and other things like them generously paying the Stamp Duty for FTBs.

1 & 2 bedroom apartments from £160,000

3 & 4 bedroom homes from £310,000

At least these newbuld off-plan buyers won't be competing for existing housing stock, when more sellers come to market, looking for buyers who can proceed. Fewer upsizers for when those owners with nice family homes try and sell.

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Warnings

If property values start falling, the bank or building society may change its mind about lending you as much as they promised when you took out the deposit.

You or your partner may lose your job, and again the lender may get cold feet.

But the developer could still hold you to the contract you signed.

If it can only re-sell the property for a lower price, it could sue you for the difference.

And you will certainly lose your deposit.

Lambs to the slaughter. In my opinion, anyway.

We shall see. :blink:

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Lambs to the slaughter. In my opinion, anyway.

We shall see. :blink:

I'd like to think so but the Government likes these people so I think will look after them.

Values leaped £100k overnight once the new underground station at Battersea Station was announced.

Government of the rentier rich for the rentier rich, so what do you really think will happen?

Edited by aSecureTenant

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Unless the Hammersmith&City line is being extended to Oxford, this person better get used to the possibility of ar haircut, I think Oxford was one of the worst performers in recent regional series.I'll check later.

Edit I see it's actually quite far from anywhere, although has a (slow) train station and in fairness it won't be difficult to get to quite a few places from there. Very isolated though, the bright lights of Didcot/Wallingford ebing the closest towns by a long chalk.

Bit of a quiet life for a young person, although horses for courses and it will at least afford plenty of quiet time to reflect on whether it was such a good idea to sign up off plan. Accidental LL in the making?

Edited by cheeznbreed

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For clarity, since I was quoted in the original post, here is what I said, and when...

http://www.housepricecrash.co.uk/forum/index.php?showtopic=149067&view=findpost&p=2665507

It just occurred to me that I haven't heard of many people buying flats "off plan" for some time. I wonder if there are still many people committed to finding the money to complete on some folly that they signed up for a few years ago.

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For clarity, since I was quoted in the original post, here is what I said, and when...

I didn't paraphrase with any intention of misleading anyone BB. Just a convenient intro to the piece as I though off-plan had quietened down as well. As it happens, yes there are: http://www.thestar.co.uk/news/local/legal-fight-ends-in-defeat-for-sheffield-chef-1-5835589

Although Help-To-Buy is kissing it all better for the off-plan revival, so it seems. It would actually be quite startling if an offplan buyer did run into problems with completion (main mortgage/job loss), or developer delays, having purchased via Help To Buy off-plan. If the developer pursues buyer to wait/pay up via specific performance, on the HTB assisted price.

I wonder how old that trainee solicitor is. Say University = 21 + 1 year LPC = 22, or a different conversion course. Bit depressing if she's 23/24 ish. That would make her like 14/15/16 when HPC forum established itself in this form around 2004ish, with many of us having already spent years trying to save against HPI rocketing away under crazy lending/borrowing..

Crunch 2007, rates floored, QE billions + FLS, and now HTB with youngsters jumping infront to happily pay high prices, claiming the housing market going to keep going up in price. Oh well, always a tragedy and excuses for the buyers, never for those who've waited for value, but see scheme after scheme to deny them.

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Crunch 2007, rates floored, QE billions + FLS, and now HTB with youngsters jumping infront to happily pay high prices, claiming the housing market going to keep going up in price. Oh well, always a tragedy and excuses for the buyers, never for those who've waited for value, but see scheme after scheme to deny them.

One of the most nauseating features of the 2008-9 "crash" was the sight of the Prime Minister making solemn statements about the need to spare no effort to assist the victims of the tragedy (that started in America). As if a 10% correction in house prices was on a par with an overwhelming natural disaster. Of course, as it turned out the reaction of the state eclipsed any historical reaction to any natural catastrophe of days gone by. Only the post WW2 Marshall Plan was bigger in scale than the rescue plan for overstretched house buyers.

Agaist this background, one can see that buying off plan is again seen as a one way bet.

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Crunch 2007, rates floored, QE billions + FLS, and now HTB with youngsters jumping infront to happily pay high prices, claiming the housing market going to keep going up in price. Oh well, always a tragedy and excuses for the buyers, never for those who've waited for value, but see scheme after scheme to deny them.

Its a car crash waiting to happen. There was another post on here about a Sheffield chef who bought off plan and ended up loosing his £17k deposit.

http://www.thestar.co.uk/news/local/legal-fight-ends-in-defeat-for-sheffield-chef-1-5835589

I hope the young lawyer has defined her risk, before gambling on the property market, because insolvency/bankruptcy means no job.

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Its a car crash waiting to happen. There was another post on here about a Sheffield chef who bought off plan and ended up loosing his £17k deposit.

http://www.thestar.c...-chef-1-5835589

I hope the young lawyer has defined her risk, before gambling on the property market, because insolvency/bankruptcy means no job.

Possibly a lot more than £17K. Their own legal bills + possibility of having to pay the developer damages (perhaps something towards their legals as well?).

I'm sure it's all ok. What else does any you need to do but spend 30 seconds to understand we're a small island, and that demand outweighs supply, so that must mean constant HPI.

Better that for many people, live for today, instant gratification of buying at high prices and being a smart home-owner, than spending years on HPC fearing debt, enduring some insecurities (as well as advantages) of renting, and worrying about huge debtors living your life in houses you can't afford, or are unwilling to meet the asking price on. Maybe they're right, as after HTB perhaps causing further malinvestment, maybe the whole system goes down following a crash.

It's not like there are changes in legal aid that the legal sector is kicking off about, the Jackson reforms too beginning a new era. Nor a report I read last month (can't find link) suggesting accountancy sector still contracting and restructuring, whilst the entire accountancy sector is only 10% the size of the law/legal sector.

This too.

July 15, 2013

Recently the Solicitors Regulation Authority reported that 160 legal practices are under intensive supervision, including 30 of the UK’s top 200 legal practices. Meanwhile, as a result of the implications of the new Alternative Business Structures and further reductions in legal spend budgets we expect to see further consolidation as high street, middle tier and some large regional practices look increasingly vulnerable.”

http://www.begbies-traynorgroup.com/news/13-07-15/uk_recovery_accelerates_with_39_decrease_in_critical_distress.aspx

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Cholsey Meadows.

Dreary M4 commuter belt. Nearby Wallingford boasts of its association with Midsummer Murders. A drive into Reading if you fancy a Big Weekend. :lol:

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Cholsey Meadows.

Dreary M4 commuter belt. Nearby Wallingford boasts of its association with Midsummer Murders. A drive into Reading if you fancy a Big Weekend. :lol:

:lol:

Expected this to be an article pushing merits of buying, yet quite a few HPC themes in it. Points out lending standards remain tight, and that house prices can fall. As well as pointing to a few other risks with off-plan buying.

19 October 2013

Things won’t look so good if prices fall, your developer goes bust, you can’t get a mortgage to pay the balance when it’s due – or the completed home looks nothing like the one in the brochure.

...Lenders base their loans on the lower of the purchase price or the valuation of the property at completion so you could lose out if prices fall during the build.

If you want 70 per cent for a home you’re buying for £200,000 then you’ll get a maximum of £140,000 – even if the home’s value is set at £230,000 when you move in.

But if prices fall and the home is valued at £180,000 at completion you’ll get £126,000 from your lender – while the developer will still want the original £200,000. ‘It’s important to have a contingency fund you can dip into if required,’ says Mark Harris of mortgage broker SPF Private Clients.

http://www.dailymail.co.uk/money/mortgageshome/article-2467605/It-pay-buy-home-built--check-key-facts.html

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Help to Buy: the buyers who benefited from phase one

More than 3,000 people have taken advantage of the scheme so far. We speak to one of them

Saturday 5 October 2013

Alex-Haworth-bought-a-fla-008.jpg

Alex Haworth: happy in her new Help to Buy apartment.

While controversy continues to rage about the merits or otherwise of Help to Buy, the first phase of the scheme – which went live in April this year – appears to be running quite smoothly. The government says more than 3,000 sales were completed under the scheme in England during its first four months.

One of those who has benefited is Alex Haworth. She and her partner, Chris, moved into their new two-bedroom apartment on Monday.

"It is lovely – we're really pleased with it. I was living with my parents, and Chris was living with his dad," says Haworth, 23, who is training to be a solicitor. Their flat cost £199,950 and is on the Linden Homes development at Cholsey Meadows in south Oxfordshire.

The first phase of Help to Buy allows buyers to take out a mortgage for as little as 75% of the cost of the property, provided they can stump up a 5% deposit, with the government providing a loan for the remaining 20%. Both first-time buyers and home movers are eligible to take part, but it only applies to new-build properties.

Haworth and her partner got a Halifax fixed rate mortgage and a 20% equity loan from the government. "We wouldn't have been able to buy the property we have without it," she says. "We've been able to get a two-bed instead of something smaller, and in the area we wanted." She adds: "It meant we were able to do what we really wanted to, which was not waste money on renting. It was really straightforward. Linden Homes were really helpful and Halifax were really good."

The scheme is due to continue in England until April 2016. Meanwhile, a Scottish version of the scheme opened for business on Monday 30 September, and a Welsh version looks set to be launched in the coming weeks.

more at http://www.theguardian.com/money/2013/oct/05/help-to-buy-benefited-phase-one

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1384139791[/url]' post='909427618']

more at http://www.theguardi...fited-phase-one

£200k and the sofas are in the kitchen? Idiots!! They haven't bought a two bedroomed flat, they've still bought a one bedroomed flat and what should have been a living room has been marketed as a second bedroom under the guise of 'open plan living'. laugh.gif

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£200k and the sofas are in the kitchen? Idiots!! They haven't bought a two bedroomed flat, they've still bought a one bedroomed flat and what should have been a living room has been marketed as a second bedroom under the guise of 'open plan living'. laugh.gif

IMO very young buyers of new builds are seduced by the shiny new 'stylishness' (as the designers of show flats and computer images know perfectly well) and are unable to see that often there is hardly any storage, or even anywhere to put anything like a vacuum cleaner/mop and bucket for those nice shiny floors.

Not to mention that an older property would almost certainly give them quite a bit more sq m for the money, or that service/maintenance charges will often take another hefty chunk every month.

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Good spot. Off plan purchase via HTB1, she'll probably get something in the New Year honours list for services to the Treasury.

BTLers were saved from themselves when lenders stopped lending on new builds.

No wonder the builders are overjoyed they can now flog flats again.

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£200k and the sofas are in the kitchen? Idiots!! They haven't bought a two bedroomed flat, they've still bought a one bedroomed flat and what should have been a living room has been marketed as a second bedroom under the guise of 'open plan living'. :lol:

Well noticed. Makes me feel a bit better. :lol:

Would prefer to see older owners seeing corrective HPC, but young total strangers buying (she not got £6K odd LPC debt to repay as a trainee solicitor), via schemes to help them meet asking prices the developers want, with them hoping prices will rise further so the trade-up price-gap increases, keep the whole thing going - just as they did before QE.

When prices slide they shouldn't rank above non-owners for special treatment, and all the excuses for how they were misled into it and need to be rescued, for BoE to start stimulus and Treasury other schemes, for more of the same.

I think in the next few years we will see property prices rise and we will get the benefits.

Good spot. Off plan purchase via HTB1, she'll probably get something in the New Year honours list for services to the Treasury.

:lol: :angry:

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Every buyer using HtB get a visit to 10 Downing Street for tea and cakes and are presented with a personally signed photo of Dave.

Lee Travis? Hardly seems suitable...

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Unless the Hammersmith&City line is being extended to Oxford, this person better get used to the possibility of ar haircut, I think Oxford was one of the worst performers in recent regional series.I'll check later.

Edit I see it's actually quite far from anywhere, although has a (slow) train station and in fairness it won't be difficult to get to quite a few places from there. Very isolated though, the bright lights of Didcot/Wallingford ebing the closest towns by a long chalk.

Bit of a quiet life for a young person, although horses for courses and it will at least afford plenty of quiet time to reflect on whether it was such a good idea to sign up off plan. Accidental LL in the making?

I don't live too far away from there, but this place really is in the middle of nowhere. Not sure where she plans on working, but driving to Oxford or Reading would take at least an hour (on a good day) even though there not that far away. Commuting to London would take up at least 3 1/2 hours a day.

South Oxfordshire council is about the most NIMBYish in the country. Something like 90% of new building in the area has been limited to just three sites -- Cholsey Meadows (in the middle of nowhere), Didcot (where no one wants to live), and a site in Thame (again, cut off from everything) -- all to preserve the bucolic views (and least affordable house prices in the country) around Henley and Oxford. It's really a shame considering that businesses located around Oxford and Reading should be fueling growth of the national economy, but the area is completely stifled by the small minded baby boomers who control the council.

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£200k and the sofas are in the kitchen? Idiots!! They haven't bought a two bedroomed flat, they've still bought a one bedroomed flat and what should have been a living room has been marketed as a second bedroom under the guise of 'open plan living'. laugh.gif

I flipping hate open plan kitchen/living rooms too. The trend for 'open plan living' has given developers carte blanche to squeeze more out of a tiny area. I would rather have a 1950s/60s flat with proper rooms, ample cupboard space and decent sized windows.

Near to where I currently live, some Taylor Wimpey flats are being sold in this style ( 'NR1' development - located right beside Norwich City Football Club). The area space allocated for their 1 bedroomed flats would have made a useful studio flat (the bedroom giving way to a kitchen or even maybe a kitchen/diner). Likewise a 2 bed flat floorspace better suiting a one bedroomed flat.

As if the floorspace wasn't a problem, the external blocks look like a load of shipping containers stacked haphazardly . :rolleyes:

shipping containers

Edited by MattW

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