If I pull out of this sale to save money, I have a new problem, please help me work this out?!

[Ddfgk]

It’s maxed the budget and now a new build has come on (not yet completed) for 25k less. This means I could save the 25k. At the moment I’d only have 10k.

The problem is that baby due October and house won’t be built until 31 December. The sale of my house goes though in September.

I don’t know what to do. Can’t stay with family so would have to find an air B and B for the remainder of pregnancy and birth, then move with a newborn all on my own! Though family would help with the move side of things.

I have to have a c section and it’s all feeling overwhelming but I keep thinking I should keep some money back. I’m also worried about the property completing when maternity has started.. will that be an issue etc.

I don’t know whether to just proceed with the current place and forgo the idea of extra savings given the situation I’m in. Maybe it wouldn’t be so daunting being in an air B and B with a baby? I have no idea. Any advice welcome.

There is no guarantee the property will be ready by the end of the year, so you could end up spending a lot of time in an air bnb.

Money aside, which house suits you better?

And what would happen if another one came up for a bit lesser than even that?

embracing chaos and instability at the point of going through the ordeal of giving birth and inviting in more uncertainty than is needed is a bit foolish, no?

From experience, it’s likely that the new build completion date won’t run to schedule. Our house went over by many weeks pre-Covid and I gather that our site now has delays of 6m+ due to the supply chains for materials being messed up.

As you normally have to exchange on new builds within 28 days of reserving, you can’t simply pull out if the build does get delayed. Your mortgage offer may expire also, meaning that you would have to reapply if your lender isn’t prepared to simply extend it. This caused us enormous amounts of stress & we didn’t have a little one to contend with at the time.

The grass isn't always greener

Thanks @DuarPorte @Solasum @UncomfortableBadger

its just the idea that savings will be 10k as opposed to 35k if waited for the next house.

I agree that it would be chaos to have to go to an air B and B and very distressing. It just seems a lot of money to forgo.

If both were ready at the same time I would go with the new build. However the more expensive one is all re done inside with brand new boiler and slightly bigger so it’s not as if it’s a bad house. I’m getting spooked by the cost of everything I think.

I presume you'll be getting a mortgage?

If so it's not like you'll have the extra £25k in the bank.

like others have said, there's no guarantee you'll be in on that date. New builds seldom come in in time & with the current issues (unavailability of materials, cost of materials they can get) I'd put hood money on it going over by quite a chunk.

Current new builds are generally poor quality housing.

frankly I'd stick with the current house.

However the more expensive one is all re done inside with brand new boiler and slightly bigger so it’s not as if it’s a bad house. I’m getting spooked by the cost of everything I think

To me, staying with the current one is a complete no brainer.

@WinterMusings

yes I will have the extra 25k in the bank.

they were a bit vague with completion and I did sense it might go over with the new build

So you are a cash buyer with no mortgage?

If the original house is all done up etc then I'd stick with that.

How much of that saved money would have to be spent on renting somewhere short term (which is over and above the mortgage payment)? How much do you lose in legal fees if you abandon your current purchase?

Have you taken those costs into account when calculating your saving?

Don’t rely on 31 Dec at all!
Friends are waiting on a new build - currently a year behind schedule!!

New builds tend to drop a bit on price if you want to resell them fairly soon
yOu will be glad of the extra space
If you are settled by the time baby is born it will be some much easier. It’s really hard trying to move with a newborn
it’s normal to worry before you buy a house but if the house still meets your requirements and you like it stick with it it

If it was me I would stick with the one I had and focus on upping my savings before I went on mat leave.

I don't think that the new build will be cheaper by the time you've paid for air bnb; storage; moving costs (there is no way you can move yourself with a newborn); likely delays etc.

Don't rely on the new build being on time.

Also AirB&B costs will add up, rent is higher than a mortgage even in long term rentals which reduces saving potential.

Unless the new build is one of the last you'll be living near a building site which is noisy when you'll be wanting to sleep in the day.

New builds also tend to lose value initially plus you have the hassle of snagging.

Stick with what you've got lined up and stop looking for your own sanity's sake.

I've completely stopped looking at Rightmove (other than the most expensive because they're never going to be in budget) since we bought our house and I'm so much happier!

Honestly at this point stick with your current house. Rentals are incredibly expensive right now and short term rentals are nigh on impossible to get. I’d be surprised if you could get an Airbnb with two bedrooms for less than 1.5k a month - then if you’re there for 5/6 months that’s 9k of your “cash” gone, plus all of the additional costs (storage for your stuff, short term energy bills, the hassle of changing all of your postal addresses etc). We looked into it and decided to stay put in the end.

Does the new build price include the fit out - flooring, kitchen, bathrooms etc?

For a bigger house and guaranteed time frame I'd be sticking with the first house. No guarantee you'd still have 25k once all costs and rental are taken into account.

There are usually extra costs when you move in to a new build compared to a mature house. Plants for a start-gardens cost thousands. Storage, we spent a load getting that right.
You’d spend a good chunk of that £25k finishing it.

New builds around the corner from me were sold off plan for stupid money and supposed to be finished last February. Literally putting the roof on yesterday morning. There’s only 3. Just been a disaster for the people who bought them. Though im guessing stupid money means they’re not bothered.
stick with what you’ve got - a bird in the hand and all that.

Stick with the one you have.

As others have said the chance of it being complete in time is unlikely and if it drags on you could potentially need your mortgage offer reviewed and offered again. If at that point your circumstances have changed and you are on maternity pay it may not be as straight forward for that same lender just to renew it.

It does sound like a big difference in money but It sounds like there wont be much between it after you have to spend all the saved money on a stop gap.

I expect if they've said 31st December they will be doing everything they can to have it completed by then as likely it's their financial year end (check on companies house) and will want the sale completed in those accounts. Ours was a December completion and we got a good deal on it because they wanted it sold by then. Our buyers started messing around Uber stupid things and the builders paid various things for them to make sure the sale went through before Christmas (completed on 20th 😬). But yeah, maybe don't rely on that if you've got a newborn and rental costs clocking up!

Buying a new build isn’t the easy option you might think.
You have to exchange really quickly. Meaning the builders have 10% of your money ages before completion. So you have no choice but to live with relatives or air bnb.
plus the house can need a lot spending when you move in. Curtain poles/curtains, garden, flooring , almost everything you see in the show home is an “extra”. That will eat into your 25k saving.
I’d stick with the house you have.

Is Airbnb even an option? Where I am you wouldn’t get a rental or Airbnb

Don't do it. My friend bought an apartment off plan, it was supposed to be finished end of last year and it's nowhere near complete. I don't think the building actually has walls yet.

You'll rip through that £25k at speed if you're in a B&B for months.

How much of your saving would you be paying out on an airbnb? Allowing for extra time decays into new year and additional storage and removal costs.

Stay as you are and forget about the new build!