To ask if there’s anyone with house buying experience who can tell me if I’m about to make a financial mistake?!

[Muusings]

I own a nicely done up home circa 1970s, 3/4 bed with full bathroom upstairs and also downstairs. Large driveway and lots of lawn area surrounding the house. Paid 440 for it 3 years ago. Lovely village location.

I desperately want to move into a new build the other side of the village. It’s not as quaint and is essentially a small housing estate. I would be getting 200sq ft more but much smaller garden and basically a parking space for a drive (so no real drive). Asking price is 510 and I’ve been told mine is now worth max 500. I could find the money to bridge the 10k difference (I know there’s also other cost involved in moving).

My main worry is that I am a lone parent and had dd by ivf. I know nobody wants to make financial mistakes but I feel a lot is riding on this. I would like dd to have her own en-suite and she would have this in the new home. I also selfishly don’t want to have to renovate this current home in any way and in a few years the roof will need doing and garden is in a bit of a state etc. I can’t face it. But… I have read new builds are not a good investment and of course this new home would be more crammed in etc. I feel really stressed about what to do. Anyone with any experience I would be grateful to hear. TIA

There’s a few Facebook new build groups where you can ask for feedback on the house / builder / location etc. might be worth getting a feel on there.

I love our new build, it’s so warm and low energy bills. We had a lovely local builder not a National one. For me it’s all down to the plot and what you can haggle. Ball is in your court, I would ask for lots of additional extras and see what they can offer you on the new site. Then write a pro con list with money and costs

We bought a new build 10 years ago , and sold it for much more than we bought it for recently

The key to adding value is get a great plot with potential

All the same style houses were the same price at sale point but I could see my plot had potential which it did

If you are a single parent a new build is a great idea as you have thr NHBC guarantee . Ours was beautifully made and after 10 years was in perfect condition

They always have tonnes of bathrooms and we bought so our teen could have her own floor and bathroom .

Good luck

We lived in our first new build for twenty years. It trebled in value in that time.
We lived in our second new build for three years. It increased by 35K.
We lived in our third new build for ten years. It increased by 100K.

This is the fourth. It hasn’t increased but we’ve only been here a week.

The cost of you doing the roof, in time, and adding an ensuite to your current home is probably less than the move you are thinking about, all things considered. Your current home is a better investment. Don't be scared of upkeep.

It’s hard to tell from your post because it’s so variable in terms of prices due to location - would you be buying a large new build or a small one? When people post negatives about new builds etc as have been posted, it tends to only apply to smaller houses on bigger estates. I have a new build house but it’s nothing like people describe. I have a large plot, it’s a small and quiet development and I have parking for at least 8 cars (and my house is not a mansion!).

We were moving anyway but my reasons for choosing a new build were sort of in line with your thinking - I know I won’t be forking out for a new roof unexpectedly, everything is new and under warranty. I loved the layout, it’s very much designed for modern living (mine also has loads of storage space), en suite for my daughter etc. I am very, very happy with our choice!

As an aside though, have you thought of the stamp duty cost of moving too? And the market is very stagnant, the estate agent saying X price is quite often a long way off what is actually achieved once you’re talking about houses over £250k ish. So if you’d be stretching to get £10k, you need to consider what would happen if yours only sold for £25k less etc.

You don’t say how old your dd is, but don’t forget to factor in things like schooling, access to transport, meeting up with friends etc. You are concerned with bricks and mortar, she might have different priorities which will out vote an en-suite bathroom.

If there are only two of you in the house her having an ensuite seems a little bit precious as your main reason for moving!

That doesn’t tend to actually be the case though.

To be fair though, modern build quality is nowhere near what it used to be.

Plus a lot of new builds come with ground maintenance charges, which can open you up to rising costs and financial liabilities.

It's hard to see what is more attractive about the planned move!
Which location will be better for your dd as she ages - which one is nearer friends/school/has better transport links?

OP, if you are moving because you are feeling overwhelmed by the roof/ garden, then I’m not sure a new build is a way to mitigate that.

I completely understand feeling that way. I can’t afford to move, so I’ve had to just bite the bullet and figure things out. It is sometimes really hard, and confusing and it does stress me out. I especially hear what you are saying about the roof- I had to sort mine a few months ago, but should have done it last year.

If you’re a homeowner and on your own, you can’t avoid this kind of thing. I feel so much more empowered and confident now than I did a few years ago. I don’t LIKE sorting these things out, but I know I CAN.

About the roof- chances are your neighbours have been getting theirs done. Start asking around to get names of reliable roofers.

As for the garden- I hear you! I bloody hate gardening. I haven’t cracked that yet, but if I did have money, I would hire someone. I know of many teenagers who do this, so you don’t have to pay over the odds.

We’re in a new build but a small developer not one of the big ones and the built quality is excellent and the finish also high end. Biggest plus is we don’t have our heating on yet - rooms are 18-20 degrees without any heating currently.

I was skeptical about new builds but we love ours.

They are a perfectly fine investment, especially if you get in at the start of a build when developers are hungry for cash to finance next stages.

As long as you aren't using help to buy, you can haggle as well.

Like someone else said, you almost certainly have an annual/monthly service charge for the area; the council usually refuse to take on any maintenance of the grass and parks etc and you won't get a council reduction for that!

The price of most new build stagnates for years.
As a pp noted, like cars once you move in they go down in value,

My db bought a new build from Persimmon and he had 600 snagging issues which took years to solve. Not small issues either, he had sewage from a lot of houses coming up through his garden and rear of the property as an example. Tiles falling off, doors not fitted correctly etc etc
You’d think as he works for a housing developer he’d have had more sence.
Of note A young couple died by carbon monoxide poisoning in a new flat in London the first night they stayed there.

You may think OP you are getting a brand new property with no work required, think again!

Word of warning, I recently pulled out of buying a new build.

The ground maintenance charges for the properties were setup to run through a new limited company setup by the developers. At some point the company was meant to become independent of the developers. To achieve this, the developers had decided the residents would take it over themselves, which wasn't communicated at all in the sales process.

When I received the purchase pack to authorise contract exchange, in it was a Companies House form they wanted me to sign to say I'd take on a directorship of the company! this had never been mentioned at all until that point.

So effectively, if I were one of the residents running it as a director, I'd be taking on a part time unpaid role ensuring maintenance payments were collected from the other residents and coordinating contractors. As costs rose I would have to go round to my neighbours asking for more money to cover expenditure to ensure the company remained solvent. If the company became insolvent, as a director I'd be liable, possibly involving bankruptcy of the company.

I pulled out of the purchase there and then. It would have been a financial and personal nightmare.

I'd heard horror stories from other new build buyers who'd been left in financial dire straits by badly managed, possibly fraudulent management companies that just kept putting up the costs, but I didn't think this was a possibility.

There and then I made a promise to myself never to buy a new build.

Since then, the estate has struggled to sell properties and one couple who bought a property have been trying to sell, having only bought the property 6 months earlier. They're effectively trapped. I feel so sorry for them everytime I see the property on Rightmove.

I know the government was supposed to be looking into the issue of ground maintenance and service charge fraud, not sure how far they've got with that.

Just be very, very careful OP. Read everything and double check all. Don't just rely on your solicitor. Mine thought the request of the builders was perfectly reasonable and normal until I point out the corporate liability issues. She was a bit sheepish after that.

@LadyMargaretPoledancer has really summed up what I was coming on to say with regards new build properties.

The maintenance charge associated with new builds is currently mostly unregulated and some estates have absolute horror stories.

I live in a new build and I wouldn't move to another.

The build quality of my home is also poor. We have been here 5 years now and are still in the process of dealing with this (awaiting a court date as taking the builder to small claims court). Most of my neighbours gave up as the hassle of dealing with the builder was too stressful. Some neighbours have sunk tens of thousands of pounds into rectifying poor work from the builder.

I know that not all builders will be like this, and even not all estates the builders throw up will have issues, but the protections that you have with almost any other purchase just don't apply to houses.

We literally can demonstrate that our home is not built to NHBC standards in several important aspects, there are areas we can demonstrate our home does not meet legal minimums, and yet there is no recourse with the builder (hence small claims court)!

If I were you I would not do it.
You say you want to move so that you don't have to do any repairs on your current house and you want your dd to have an ensuite.
In reality and new build does not necessarily mean no upkeep costs. Also, you will need to pay moving costs, stamp duty etc. can you use this money to create a ensuite in your current house ?

I am currently looking at houses and I considered new build initially. But now, having visited a few on a Saturday as well as having a couple of friends living in one, I am very very reluctant. Noise is a massive issue. You can hear everything your neighbours are doing. I know, some older houses aren't brilliant but they are often a lot better.
Two bed new builds have nice large bedrooms. There beds have a horrid box room that is smaller than 2x2 but charge extra 40k for it. No thanks.
The plots are tiny and overlooking neighbour's windows. So not only you have no chance to lay decking and have a garden, but you are also exposed to BBQ smells and noise all summer.
No storage whatsoever. None! Not a single linen cupboard or boot room. Again, plot is not big enough to even build a conservatory, never mind an extension to at least whack a laundry room in. Although, there may be a laundry room in more expensive and larger properties. Sadly, they are outside of my price range.
So the only benefit is energy efficiency rating.
A lot of them also have open plan kitchens while older houses will have a separate diner and sitting room. So, essentially, two extra rooms for the same money.

I don’t have anything against new builds and in my town there certainly doesn’t seem to be any dip in price even when they’re resold within a few months.

However, the most important thing about any house is the location. Almost everything else can be improved. If you prefer the location of your current home, stay put. It sounds like it has a lot of potential with a bit of investment. You could use the money you’d pay for stamp duty and solicitors to change the roof and add an ensuite. Depending on the structure, you could extend into the loft to create additional space.

If you are completely against doing any work on the house, go for the new build. But there’s no guarantee that won’t need improvements.

Check out the house builder, reviews etc. Some are much better than others. I had a lovely one from Berkeley homes, still wonderful after 20 years.

Also look at how much renovating your current place would cost. Otherwise you're spending £ on stamp duty, which could be invested in your own home.

Most estates are managed by a management company and when the developer leaves the site, the residents are all directors of it. They instruct the same, or another management company to manage it and to ensure that the local authority does what it should do.

Berkeley Homes are good quality for a volume builder, although less so since Tony Pidgely died. Otherwise, small volume local builders are often a better bet.

In my new build I have a large walled garden, a utility room that we’re going to add extra cupboards in, a linen cupboard, a large garage and massive amounts of insulation and energy efficiency. Plenty of room for a conservatory should we want one and we’d still have a good sized garden.

Annual management fees on new builds are currently not capped. Unless the law is changed you could see a vast increase in charges.

There was a thread here not long ago from a poster who was stuck in a house that they had outgrown because the management fees made it unsellable.

It's a real financial pitfall that you should be aware of.

I'm not snobbish about new builds but I'm suspicious of them, having seen a number of them with serious damp or structural problems which in theory are covered by the guarantee but never seem to be fixed properly. A builder warned me always to buy one of the first ones to be put up because developers start skimping on materials later in the build.
If you love the new build house and can afford it, it's not a daft thing to move, but it is a bit of a gamble whether it turns out to be a new investment.
However, taking into account stamp duty of 12,500 on this house plus removal expenses and the difference between your sale and the purchase, it might make more sense to save to cover any roof repairs and a perhaps a new ensuite on your present home.

Requiring the residents to take on the management company as Directors is a very foolish and potentially disastrous course of action in my opinion.

In a lot of cases it has been extremely detrimental to the property owners and is open to abusive or financial mismanagement.

This is exactly why the previous government flagged it as legal risk to property owners and were looking at legislation to put control measures in place.

I would not touch a property with this setup with a barge pole and I suspect a lot of other people feel the same.

https://www.thesun.co.uk/money/24517079/freehold-estate-management-charges-leasehold-homes-fleecehold/

I wouldn't move house to avoid replacing a roof. If you have a good roofer it is not stressful. We used a roofer recommended by several people, they were not the cheapest and they had a long waiting list. The work was not stressful - noisy if you are at home during the day, but you don't need to be there. The roofers just got on with it, they didn't need to come in the house, and there was little to discuss once they had started.

Sorting out the garden I can see might be more complicated, but I'd also consider how necessary it is.

Work inside the house can be more disruptive and stressful, but it doesn't sound like you need to do this.

Buying, selling and moving house I would find MUCH more stressful than replacing a roof and doing gardening work.

New builds - I really like nice new builds, but I would be cautious about the builder's reputation. Friends have had really mixed experiences. From everything being great to expensive difficult to resolve issues that they have ended up paying for.