Did I do the right thing buying a new build property??

[Lovelouise6778]

Hi all,
DH and I have bought a 2 bed flat (we have 3 kids)- newbuild using the HTB scheme. We are not by any means wealthy- income of £40k and had to put massive deposit down to be able to afford it and I'm feeling a bit apprehensive.
The area is quite remote. Only buses near by and none of us drive. Everything else is quite close though however.
We have been renting for 4 years before buying. Did we do the right thing by using all our savings to buy a newbuild?

@Godmothered

OP has said it IS a leasehold.

But then OP has also said it’s rural but in London so now I am really confused, to be honest.
(I am rural as @LawnFever thinks rural is; 2 buses a day)

What london zone is it ?

Central London flats will be very much more for share of freehold or very long leasehold. Some nice zone 4-5 areas will see only 2 beds for 500k.

Why not just enjoy it and cross the river in 5 years?

I live in zone 3 and am wondering why you spent half a mil one two bed flat when you have three kids...where I am you can still but a 3 bed house for that if you didnt mind living on an unfashionable road

[quote BelterDelta]@Godmothered

OP has said it IS a leasehold.

But then OP has also said it’s rural but in London so now I am really confused, to be honest.
(I am rural as @LawnFever thinks rural is; 2 buses a day)[/quote]
Yes the OP said that AFTER that comment actually thank you very much.

How can London be remote?! But OP I’m sure if that’s your plan it will be ok. Are you on Instagram? I follow the Vitamin D project on there, Africa, the woman behind the account has made a beautiful space for her 3 DC in a 2 bed London flat. Might help for inspiration.

I just sold my freehold 4 bedroom townhouse with garden in zone 3 SE London, train station 10 min walk away, for 500k last week.......

@Cruddles

I just sold my freehold 4 bedroom townhouse with garden in zone 3 SE London, train station 10 min walk away, for 500k last week.......

How funny...I also live in zone 3 se London in a 4 bed townhouse . Yes, about 500k...I have no idea why anyone would buy a two bed new build flat for that much when you can still buy houses in London for that amount, especially with three kids

OP I really wouldn't use the London HTB scheme to buy a flat that's already too small for you, I really think you're walking into a trap that could take you a very long time to get out of, I say that as someone who has used HTB myself (outside of London, freehold) but in your situation and what you're buying I really think that's a risk too far. Really think about how suitable that flat will be if you get stuck in it for the majority of your family years.

@Godmothered

You’re showing yourself up. It has a leasehold. That’s all I asked. No debate needed. End of.

[quote BelterDelta]@Godmothered

You’re showing yourself up. It has a leasehold. That’s all I asked. No debate needed. End of. [/quote]
😂 ok.

I think she's bought a new build flat as you have to buy new to take advantage to help to buy. Am I right?? So she never would have been able to get a three bed terrace in zone 3 because it will have been post war or Victorian or whatever

@gigi556

I think she's bought a new build flat as you have to buy new to take advantage to help to buy. Am I right?? So she never would have been able to get a three bed terrace in zone 3 because it will have been post war or Victorian or whatever

But the point is the Victorian terrace in zone 3 would’ve been cheaper than the HTB new building so she probably could’ve bought it on the regular market

Two bed with 3 kids, salary of 40K but flat is worth £500 ... in London but remote .... making no sense at all ...

@MiniCooperLover

Two bed with 3 kids, salary of 40K but flat is worth £500 ... in London but remote .... making no sense at all ...

Glad I'm not the only one who thinks things don't add up here

If the HTB scheme was only available on new builds and that's what you could afford to get on the ladder, then yes, you've done the right thing. But I hate newbuilds, and wouldn't consider buying something that didn't have a guest room, let alone a flat (I'm assuming no private outside space?) with only 2 beds for 2 adults and 3 dc. I'd have looked at moving further out and getting more for your considerable amount of money.

Oh, come on, people. Stop being arsey to the OP.

• Yes, flats are leasehold. Freehold flats are not something you want to get into.
• Yes, it's possible for parts of London to feel remote, especially if they aren't the part you're used to.
• Shockingly, it turns out that one year olds carry on being one for an entire year, a year during which new babies can also age six months.

Would I personally want to live in a 2-bed flat with 3 children? Not particularly. But if it was my only option for getting on the housing ladder, I might very well prefer to do that than not. And I'm not personally a huge fan of new builds, but that's how Help to Buy works so it is what it is.

@Persipan

Oh, come on, people. Stop being arsey to the OP.

• Yes, flats are leasehold. Freehold flats are not something you want to get into.
• Yes, it's possible for parts of London to feel remote, especially if they aren't the part you're used to.
• Shockingly, it turns out that one year olds carry on being one for an entire year, a year during which new babies can also age six months.

Would I personally want to live in a 2-bed flat with 3 children? Not particularly. But if it was my only option for getting on the housing ladder, I might very well prefer to do that than not. And I'm not personally a huge fan of new builds, but that's how Help to Buy works so it is what it is.

Agree with all of this

OP if this is what it takes to get a toe on the ladder then go for it. Yes it might be a bit of a squash but it's a blank canvas you can plan where to put shelves & storage without having to move existing fixtures or fill holes etc. As others have said you shouldn't have any outgoings for appliances or maintenance for a while so as you've already said this is a stepping stone it should give you a chance to plan and save for your forever home.

People don’t seem to understand Help to Buy - you get a loan to add to your mortgage and deposit so you can afford the £500k. You can’t just buy somewhere else not on Help to Buy because you don’t have the loan, contributing 35-40% of the value I think? You don’t pay the loan back for 5 years then I believe, or that’s how it used to work anyway, just the mortgage. If your financial position improves in the 5 years you increase your mortgage and pay back the loan, or sell up and move somewhere you can now afford to buy outright.

Help to buy properties are usually ridiculously overpriced though. I just bought a 1 bed flat (the regular way, no HTB) for 200k. There’s a new development of HTB one bed flats about 10 feet up the road from me for 500k each. Yes, the government will pay for 40% of that but you have to pay it back. Which one would anyone sensible choose?

See? People always moan about posters who use 'months' for babies over a year old, but here you all are getting confused when someone just writes '1 year'.

My other thought was that she might have twins both aged 1 year and 6 months.

Don't fret, OP. With a big second bedroom, the kids can all share easily. London can't be that remote and property in London is generally a very solid investment. Modern building regs will have been followed, which you really want in a block of flats, and a sought after area (which I presume this is) is generally a better investment than a larger house in an 'unfashionable street'. This clearly is a stepping stone for you rather than a forever home and it sounds like a solid start.

Congratulations!