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Original poster

Is it a good or bad time to buy a new home?

49 replies

Hellobye · 30/04/2017 22:10

I have seen a house I want to buy but it is at the highest price I am comfortable with. I keep thinking of worst case scenarios eg post-brexit crash or world war 3 (don't laugh) and how it will affect house prices.

Will I be stuck with a house I can't sell in the future? Is it a good or bad time to buy? If I don't buy now I am paying extortionate rent so I know it is probably sensible to invest my money now. All the what ifs, what ifs are going through my mind. Please reassure me!

OP posts:

Original poster

Hellobye · 01/05/2017 08:46

It's a development on the edge of a very popular town. Not D!

OP posts:

LizzieMacQueen · 01/05/2017 08:55

In that case I'd say it may well be harder to sell on for two reasons. If they are still building potential buyers will prefer to buy brand new off-plan much as you are doing now.

Secondly you don't know who else might decide to sell at the same time as you. Of course that's true at any time in any house but on a development it's harder to stand out.

JanetBrown2015 · 01/05/2017 09:10

My son lets his place out at £1000 a month. It will take 12 months before he has even covered his buying (and letting agent) costs and that includes at least £6000 stamp duty. So if you only going to buy for 2 - 3 years it may not be worth those wasted costs particularly as in the current market most properties bought new in particular are likely to worth less in 2 years' time in my view or could be. However you need to do the sums - add up your stamp duty, solicitors' costs, etc etc and then decide.

Thefabulousfeminist · 01/05/2017 09:13

I don't think the election will make any difference

Even talk of house prices slowing is "slowing" not "dropping" - the figures are showing a slower rise, not a drop.

If you need somewhere to live and the mortgage is less than rent, I'd buy iiwy

Original poster

Hellobye · 01/05/2017 09:18

Yes the new home won't rise in value at the same rate as more traditional houses in the town which is why I was concerned about the impact of brexit etc in case it ends up less than I sold it for. I suppose the whole market will be affected then though as a pp said.

OP posts:

MyCalmX · 01/05/2017 09:34

Would you need to sell in 2-3 years (moving area?) or just that you'd think to move in that time?

Batteriesallgone · 01/05/2017 09:38

Brand new for 2-3 years?

You'll make a loss whatever happens in the market. Up to you whether that's worth it given the rent you're currently paying. Get a spreadsheet, work out the numbers.

The question is how big a loss and how significant a change in rates can you afford. Again, spreadsheet required.

Original poster

Hellobye · 01/05/2017 09:43

I don't need to sell in that time, it's just my personal circumstances might change eg dc moving out and I would be left rattling round a bit not needing all the space. I also feel I am compromising a bit on location as it's further out of the town than I would ideally like and can't see me there for ten years but it will do for now.

Spreadsheet it is!

OP posts:

HoneyDragon · 01/05/2017 09:58

No one can tell you what the property market will do.

Also as a FTB you're not an investment buyer you want somewhere to live.

As long as you like the house, can afford the mortgage even through the odd interest rate hike and it's not the end of the world if you end up in the house longer than planned go for it. After all anything not paid in rent now becomes equity. Also like any other house negotiate. Get them to pay your stamp duty and chuck in extras or make a low ball offer of its mid or year end and they need an easy move to hit their deadlines.

As for the new builds, it's simply not true that as standard you lose money on s new build, it very much depends on the development and location. Ours is two years old and folk are already selling on at 10-15% higher than they paid. We were told we were idiots a) for buying just before the Brexit referendum and B) a new build. We were told we'd lose tens of thousands. Eighteen months on the house is valued at 80k more than we paid.

Investigate what amenities are being put in at the new build site....once completed these may be a draw that will make your property more appealing than existing ones in the town. New schools, health centres parks, shops whatever. If you know the area well you should know whether any of these would appeal.

Batteriesallgone · 01/05/2017 10:08

Honey how big was your development?

A small development may well increase in value. That gets less likely the bigger and further out of town it is.

Original poster

Hellobye · 01/05/2017 10:09

Yes I wondered if I could make an offer or if new homes are a fixed price.

OP posts:

HoneyDragon · 01/05/2017 10:17

Large out of town development. It's like everything in house buying nothing's set on stone ....plus you've only got anecdotal evidence until it's established and you can see the house prices on record.

It's a bloody big deal buying a house and I also think if you're looking at the what if's, than they should be your personal ones rather than the property markets

NotDavidTennant · 01/05/2017 10:18

It comes across to me that you're buying this house because it's available and will be an easy purchase, not because it particularly suits your circumstances.

HoneyDragon · 01/05/2017 10:19

Nothing is fixed .... always haggle. I got fixtures and fittings included, stamp duty paid and money off the asking price

HoneyDragon · 01/05/2017 10:20

And that goes for everything op. Don't rule out a house you've found you love as you think it's too expensive ....you've got a lot going for you as a buyer.

HoneyDragon · 01/05/2017 10:21

Sorry that was in response to NotDavids comment

chickpeaburger · 01/05/2017 10:47

honeydragon "After all anything not paid in rent now becomes equity."

Rubbish

HoneyDragon · 01/05/2017 12:12

Well it does, the ops said she's not paying rent, after all that can all go into the deposit for her next home. Surely every thousand pound counts?

sunshinesupermum · 01/05/2017 12:27

Never compromise on location especially if you think yo might need to move in 2 - 3 years. You will lose money sure as eggs. A new build will not repay your costs in that short space of time.

I agree with other posters that while you rent you won't have any maintenance issues to deal with, although witha new build you won't either as long as you have a developer who puts them right (and they don't always)

If you DC is likely to be moving out then why do you need a 3 bed house?
Could you afford a 2 bed house in the area you like best without a mortgage even?

sunshinesupermum · 01/05/2017 12:29

notdavidtennant the OP comes over this way to me to - convenience of new build etc etc which is understandable but not if she's only saying 2 -3 years and has double the costs of buying and selling instead of saying put.

Location, location, location is a mantra for a good reason OP

CountMagnus · 01/05/2017 13:21

Brand new for 2-3 years?

You'll make a loss whatever happens in the market.

Not necessarily. Some new builds local to us have appreciated massively - from £475k to £675k in a little over 2 years.

DeliciouslyHella · 01/05/2017 13:28

We moved this year after owning for 3 years, and walked away with a significant profit. However, we bought in a town that was very much on the up and our house was in good condition, in a nice part of the town. We had no problems selling it. So it can work.

However, we have bought our 'forever' house in its place. This is the house we want our children to grow up in and for us to grow old in.

In your situation, I think I'd hold tight for a bit longer.

Original poster

Hellobye · 01/05/2017 16:16

I'm so unsure. I think I will go and have another look tomorrow and see if they are willing to negotiate on price/stamp duty and take it from there.

The pp who said I was doing it out of convenience is right. The thought of finding the right home and waiting in a chain puts me off.

OP posts:

HoneyDragon · 01/05/2017 17:19

You have my sympathy, my in laws went through this and rather than rent or stay with us they panic bought for convenience and bitterly regretted it.

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