To consider buying a new build??

[firsttimemummy11]

Hi,

We're desperate to get on the property ladder and exploring the option of a new build with the help to buy option.

Are we being naive in thinking this is a good idea? As I hear so many mixed reviews about new builds? And is the help to buy option to good to be true?!

We're a couple in our early 30's with a toddler and have just about managed to save a decent 5% deposit? We are looking at a development in Horley.

Would really appreciate hearing others pros and cons, thanks!

I know a few people that work on these properties, roofers, builders etc. They say to avoid them like the plague. They'd never buy them themselves.

@DontCallUp Because they can, I think! It is awful, I agree.

But for more detail, there is some communal green space on the development that the council isn't adopting, so the EM company is looking after that (and only that, no roads / streetlights etc). As I said, there is no cap on the yearly charges increase, but there is a process whereby we can challenge any increase by going to the Chartered Institute of Surveyors. Our solicitor is of the opinion that if you're mid-dispute they may block you from selling your house until you have paid up. (Or indeed if you are in arrears for any other reason ofc). But equally, there is no clause which states that no reply from EM can be taken as consent after x weeks. So equally, if you get a shit site manager who cba with their emails you can't sell either!

And we did some research on our particular estate management company and found they were mentioned by name in a debate in the House of Commons. In that case, residents in a block of flats needed the fire safety certificates from their freeholder (which was the EM company) to remortgage. EM company wouldn't hand them over. So the residents can't remortgage!

Sorry for the rant, it gets me so annoyed! Leaseholders actually now have more legal rights in terms of estate management fees than freeholders. Which is why many think "fleecehold" (ie unreasonable restrictions on a house sold as freehold) is going to be the next big house building scandal.

I’d just be wary of the HTB scheme. Make sure you’re prepared. We bought a new build two years ago and it was sold to us as, when the 5 years interest free period is up you just setup a monthly DD to pay off the loan. This isn’t how it works. We’re looking at having to remortgage to include repayment of the loan or simply paying interest. Worth also knowing that if your house sells for profit - they will take their 20% of that too.

As much as I'm not a fan of new builds as a ftb, as long as you equip yourself with the facts, I think it's an excellent option.

Only if your Dad built it.

I work for a developer.

I wouldn't recommend buying a new build.

I love my 4 bed new build it's very spacious, light and airy.. however you have to keep on top of any issues with the house ( you have 2 years to get any issues corrected for free) my Husband is particularly picky and have had the builders back to fix minor issues numerous times.. as for not maintaining its value a house the same as mine on the same estate sold for 20k more than I bought mine for!
We struggled to save a bigger deposit so we are aware we have to pay HTB back in a few years but we are hoping to put it onto the mortgage... for me it was worthwhile ( ps it was persimmons!!)

Thank you so much for everyone who responded! It's so good to hear other peoples opinions and experiences...

I moved from an older home to a new build. Less issues with the new build. Will be moving again shortly and wouldn’t rule out buying a new build again.

As someone said, the negative equity/small rooms/no parking issues people come out with are laughable. Yes, some are, but obviously like anything at all, it depends on the house. There are plenty of old houses with no parking and tiny rooms ffs and plenty of old houses badly built and falling apart!!
There are some brilliant new builds and some awful ones.
Our last one was brilliant. Double drive and garage as well as loads of on street parking, no estate or maintenance fees, all appliances included, 3 year warranty on everything in the house and fixtures and fittings and a 10 year build warranty, big garden, big light and airy rooms, built in wardrobes - more storage than any non nee build I’ve ever viewed - and everything customisable. After two years it was worth 40k more than we bought it for. Everything was brand new and we loved it.
We couldn’t have made a better decision.

I bought older house (with5% deposit) few minutes away from new builds. Mine is bigger and costed half of the price of the new build. It did need some modernisation but it was in absolutely perfect living order and we had no issue living 2-3 years with old kitchen, old bathroom and crappy laminate flooring. Totally worth it.

Make sure you know your market well before you make decision. Go and view few houses in your budget in the area. You might go for new build or not.

I personally would not buy a new house but if it's that or not buying, I would go for it.

I’ve lived in a couple new builds. They were horrible. Really over insulated. Way too small. Stupid layouts. I now live in a property that is a couple hundred years old and categorically will not move to another new build in the U.K.

As someone said, the negative equity/small rooms/no parking issues people come out with are laughable. Yes, some are, but obviously like anything at all, it depends on the house. There are plenty of old houses with no parking and tiny rooms ffs and plenty of old houses badly built and falling apart!!

Older houses weren’t built for today’s living requirements (two adults working etc.). So if you’re going to build a house in 2020 then why not make it suitable for the needs of 2020 homeowners? I really don’t think it’s “laughable” to expect to be able to park your car on your drive and get out of it @Amanduh

You'd think that no-one ever bought an old house that had the typical issues of an older house: Draughty, damp, nail sick or leaky roof, infestations, weird electrics, downstairs bathrooms, no parking, rotten floorboards, dangerous chimneys, 19 layers of woodchip, leaky pipes etc etc.

Of course, not all older houses have these and equally not all new builds have any or all of the issues detailed above.

Not all layouts suit everyone, so fine a layout you like or they are usually easy and cheap enough to change. Some people like the idea of very little maintenance and well insulated fuel efficient home, others are into period features so will take the hit on the costs of heating.

People aren't all the same and aren't all looking for the same thing.

I've lived in properties for lots of different periods - 17th Century, Edwardian, Victorian, 1930's, 1970's and new build.

My current house is new build - fantastic. Heavily insulated so heating bills very low. No repairs needed on anything (every other house guzzled up our money restoring 'features'. Our new build has huge driveway for 4 cars and 2 garages. It's on a small development. We have a wood burner and huge garden, so I don't recognise the descriptions and woes given about new builds on Mumsnet. Since we bought the house it has risen in value substantially.
However as a previous poster said - all house builders are not the same and not all houses are.
I'm sure it also depends on what you pay - as with any house purchase.

What about older properties with single glazed windows, no insulation, damp, rotting wood, elderly kitchens and bathrooms, a roof that needs fixing and so on.

The worst parking issues round here are Victorian terraces with no drives.

Horses for courses. Choose your builder wisely. Ours in now worth £65,000 more than we paid.

We bought our first home as a new build 6yrs ago. We’ve ha da couple of small issues but no more than we would’ve had with buying any other house on the market (possibly less than we would’ve but who knows) we also did help to buy. We are now paying the interest on the loan but you can only pay off the loan in certain amounts at a time so we put money aside each month for that. There is no way we could’ve bought anything else at the time or since then and to rent would’ve cost us more a month than our mortgage has. We’ve not done much to it but have made money on it which obv wouldn’t have happened if we carried on renting. New builds aren’t all bad!

Love my new build & it has increased in value so not like a car at all

Also, all houses were new builds at some point

We chose a new build and have been in now for nearly a year. We did help to buy and now have a year less renting and a year off our mortgage.

We liked the idea that we split the risk of a price drop with the gov. So when you repay the gov you do it at market levels so if you are selling and value goes up - gov does get more but the same if prices fall.

Ideally you need to be saving during the first five years to pay off the gov as quickly as possible.

We found a small site (only 30 houses) and the nice part is that we all moved in at the same time. And have now built a really nice little community.

Help to buy means its a fucking nightmare to remortgage.

Its a fucking nightmare to try to staircase the loan
And its a fucking nightmare to try to pay the loan off.

Beware of the fees that you dont expect... such as circa £1000 to remortgage to another lender.

Beware you also cannot borrow more on your mortgage at any point with help to buy.

Choose your lender wisely... dont think about it if you arent going down one of the main highstreet lenders.

Oh i have a new build and i love it

Oh you can only pay off 50% or 100% of your help to buy. No paying it off monthly

@Doodlebug It shouldn't be a nightmare to remortgage. Have you talked to a broker? When we were looking into our new build, we spoke to someone who specialises in new builds and asked about remortgaging and he explained how it worked. I can pass on the company's name if you like, just pm me. (I have no affiliation with them, they just offered me free good advice)

And I think remortgaging often incurs fees anyway, so the £1000 you mention is pretty standard regardless of HTB or not I think?

It is a night are to remortgage to pay your help to buy loan off if you can't borrow the money.

Unless your circumstances have. Chaged in the five years since you bought the house you could have problems. You couldn't borrow the full amount when so why would you be able to in 5 years?

I think help to buy is artificially inflating the prices of new builds and the normal rules of economics are being skewed