Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

1 2 3

Original poster

House Conflict - New Build or Not

71 replies

JediStoleMyBike · 09/06/2017 22:29

Looking for a bit of advice as I am not sure where to turn.

Husband and I have a couple of choices of property to buy, both with pretty major hang ups and we're not sure what to do. We keep thrashing the issues out and are coming up with the same 'I don't know' response and so I'm hoping others can weigh in with some experience. For clarification we have 1 daughter.

House 1:
£155,000 and needs a lot of work. Semi-detached 2 bed. We will need to update staircase, have electrics sorted (as DIY extension cables with plugs to light fittings are everywhere) as well as lay new floors and move the boiler, which is currently in second bedroom.
There is no dining area, just a long and thin kitchen. Conservatory which we could use as a dining room. Stairs in living room so we are already losing space, would struggle to fit a dining table in the living room.

House 2:
New build, £199,999 and ready to move into. Can use the Help to Buy scheme (but obviously worried about the 20% loan and ability to pay back while in interest free 5 years). Lovely area and much more space than house 1. Freehold. No charges to pay for upkeep of area, etc. No conservatory, kitchen-diner and WC downstairs.

Really, we are stuck between the space and possibilities of house 2, countered by the fact we'd have to use Help to Buy loan to buy it and house 1 which needs a lot of work, is pokey but we won't have the equity loan so when we came to sell we'd (hopefully) get what we paid for it back. We much prefer house 2 but if we want to sell, we are worried we won't make what we put in back. Houses with 3 bedrooms are going for £180k+ in the same area.

Any advice / experience gratefully received.

OP posts:

Original poster

JediStoleMyBike · 10/06/2017 08:37

Thanks Miss, New, Pilates.

House 1 is actually in more of a close estate than house 2. House 2 is backed by fields and has nothing but a road ahead really. House 1 is the end of a road really and has lots of houses close by. We drove down at night to see it one evening and there were cars parked all over the road / pavement.

OP posts:

pilates · 10/06/2017 08:42

Could house 2 have the potential for building more houses in the field behind? I would check that out.

monsieurpoirot · 10/06/2017 08:42

Completely understand your concern. That is the trouble with only planning on living somewhere for 5 years. Is there any way you can stretch to a 3 bed now for 180? Then at least you could stay there if you end up in negative equity at some point. If not I'd still go for the new build, as you could easily have 2 children sharing, and it will be the easy option for this time in your life. I just think you could do work to house 1 at huge inconvenience to yourselves and not get your money back when you sell, because it will always be a small 2 bed semi. The next 5 years will be very uncertain with Brexit etc so go with what would make most sense for up to 10 years if needs be... Good luck!

senua · 10/06/2017 08:45

I'd go for House 3.

PotteringAlong · 10/06/2017 08:45

If there are 3 beds selling for £180k then is buying one of those an option?

Original poster

JediStoleMyBike · 10/06/2017 08:49

Pilates - entirely possible! I will do some research.

Thank you Poirot, we have looked into the possibility of £180k but we'd be really stretching ourselves. If I went back to work full time 3/4 of my salary would go on childcare so it may be that I need to work part time, which would mean that the extra on the mortgage would be unaffordable. We can easily manage these two properties as it's the same amount as our rent currently we'd be paying back per month.

OP posts:

Jcee · 10/06/2017 08:49

I think it unlikely that with house prices the new build would lose so much value. As mentioned upthread you only pay the equity loan % back on the value at the point of sale (so if value goes down you repay less).

Also you don't need to pay off loan at end of 5 year interest free period and pay monthly interest instead.

In 5 years time, your situation and needs may be different so I think it's worth looking at a property in terms of what you need now and what your longer term plans are (do you plan to move on within 5 years) rather than what something may or may not be worth.

You do need to work out what you can afford though and should take advice to understand if house 2 works for you financially.

Original poster

JediStoleMyBike · 10/06/2017 09:06

Thank you Jcee.

Things are up in the air as to what we plan to do. We do want another child but dependent on husband's job he may need to look elsewhere in a couple of years. He can travel in the area we are but eventually we may plan to move further afield to take advantage of opportunities elsewhere, but that is not a set in stone plan.

We have taken advice on house 2 - it will be cheaper than house 1 initially and then the same price once the equity loan becomes payable in 5 years.

OP posts:

Original poster

JediStoleMyBike · 10/06/2017 18:03

Tried to get the new build for £180k, no luck. Estate agent thinks the developer will go to £190k.

Spoke to estate agents mortgage guy who said that we'd be approx £100 cheaper per month for the new build but he isn't a fan of help to buy and would urge us to seriously whether we'd be able to pay the 20% back before the interest period free ends, which we wouldn't be able to do I don't think.

Feel like I'm stuck between a rock and a hard place, banging my head against a wall.

OP posts:

Kokusai · 10/06/2017 18:50

House 1 sounds bad, sorry.

PickAChew · 10/06/2017 19:03

Nothing you say about house 1 is selling it to me. It'll cost more to fix than the difference between that and the 3 beds and you'll never get parked anywhere near it.

Dishwashersaurous · 10/06/2017 19:09

Given your doubts sounds like you shouldn't be buying either.

Given the market, wider uncertainty and costs of moving you need to plan on being somewhere for at least five years ideally longer.

Perhaps it would make sense to wait a year and see how both your job situations are

monsieurpoirot · 10/06/2017 20:26

Did you let them know your offer stands? I'd not be surprised if they go on to accept it in a quiet period (ie over this summer post GE). In the meantime why not tell us where you are looking and your max budget- maybe someone could find you a house you have overlooked so far...

MissDuke · 11/06/2017 06:16

Sorry but I also think house 3, even if it is a long wait to find it. You don't like house 1, and that is before you even start the nightmare job of refurb which always ends up more expense and stress than expected. House 2 is out of your reach in my opinion.

I would honestly wait.

Toomanycats99 · 11/06/2017 06:21

I have a colleague. He has bought an expensive house on a new build estate. It is riddled with issues as are many of the others so much so that one person has been advised they need to love out for several months for builders to complete the fixes. He is also looking to move but there are now several of the house on the estate up for sale and not much movement. I would steer clear of new builds as I think you pay a premium for them that you won't get at resale.

Squishedstrawberry4 · 11/06/2017 06:34

How much would the loan be for? Is it 35k?

Original poster

JediStoleMyBike · 11/06/2017 08:36

Thanks for the further thoughts.

I think the issue we have is we live in a popular coastal village (which the usual population of is older people) so house prices are expensive. There's a beautiful 3 bed semi detached in the town 25 minutes from us that is selling for £155,000 (same as house 1) and is move-inable, and a few lovely 3 beds for less but because of my husband's shift work he would be travelling the 25 minutes four times a day, which would eat in to any time he has to destress in the day (which isn't much as it stands!)

The equity loan would be for £40k I believe, which is an awful lot of money to pay back in the interest free five years.

OP posts:

Original poster

JediStoleMyBike · 11/06/2017 08:37

And no, I stupidly didn't tell them that the offer is still on the table. To be honest if they don't shift it then come to us further down the line to offer us that price it will more than likely be too late for us to proceed anyway.

OP posts:

Orangebird69 · 11/06/2017 08:49

With new buikds, you can get good deals depending on the time of year - if it's near the end of a financial period for the builder, you could get a good deal. My DM bought a new build. Was up for £198k. She offered £155k - that was all she had. They said no. Then came back to her and accepted a few weeks later.

user98765432101 · 11/06/2017 10:00

I'd def go with house 2 except - does it have a bath? The plan looks like it's just a shower? Though maybe I'm missing something

Original poster

JediStoleMyBike · 11/06/2017 10:22

Bath and corner shower yes!

And I tried to get a deal but alas, they didn't bite :(

OP posts:

Blankscreen · 11/06/2017 10:32

This is,why help to buy is such an awful scheme as it artificially inflates price over and above what buyers can really afford.

You need to be putting £700 a month away every month to pay off the £40k in5 years time. Personally i wouldn't do it.

I don't think either are right if you buy house 1 you will want/have to move in a couple of years especially if you have another child which will cost.
House 1 will cost more than you realise to do up.
Hold your nerve on the Second house. I work for developers and they will often go lower. A 10% price chip Isn't that bad. They may offer to pay state dury to sweeten your deal. How many are sold already? Can you but at £180k without Htb

Also 100 minutes ,day commuting Isn't that bad if it means you can buy a suitable house you can afford......
Dh does 180 (3 hours a day) as we can't afford a suitable house in London and he commutes in.

Original poster

JediStoleMyBike · 11/06/2017 11:16

I think we've always lived close to DH's work - longest 'commute' was 15 or so minutes each way so he's coming at it from that position. I've always driven between 20 - 50 minutes to work so I don't see it as that big of a fuss.

No, we'd still need to use help to buy to afford it at £180k but I would be comfortable in thinking that it would at least resell for that so we wouldn't lose when it came to move, if that makes sense?

OP posts:

NewPurrs5 · 11/06/2017 13:20

I think you DH needs to be more flexible on commute. He is very lucky to have only ever commuted such a short amount of time, but looking at this thread, house number 1 is no good at all and you don't even like it so you'd be buying for sake of really- and house 2 isn't a financially stable option. I'd keep saving and reasses while keeping an eye for a three bed

Original poster

JediStoleMyBike · 12/06/2017 09:35

Quick update. We are going to see a few properties in the town over today for the same price as house 1 but are spacious 3 beds rather than small 2 beds!

Wish us luck 🙂

OP posts:

Flip

1 2 3

Swipe left for the next trending thread