New build or wait!

[Schmeevey]

first time poster please help! We want to move out from London.

Looking to buy a large build home in a small village in south Bedfordshire. Have always wanted to live in bucks but this developer popped up and we have been eyeing this home for a while.

Hubbie only wants a new build but I have my doubts having lived on a new linden homes plot before which was forever expanding!

pros
lovely large home facing a nature reserve - we have dogs and it means toddler will
be able to get out for fresh air and bike rides eventually
walking distance to great primary school
has coop and pub, church and playgroup in the village
neighbours seem friendly and all the homes nearby have young kids
nursery available down the road
its a double fronted home with study, playroom large kitchen diner. Medium sized garden.
job is not an issue as work available
70k stamp duty negotiated and paid by the builder
part exchange by builder so we don’t have to sell our home

cons
huge mortgage but doable
pressure on me as I’m breadwinner and main person to pay mortgage as I’m earning higher
1hr from my in laws, no other help available
in laws not happy as they think we will be lonely and they won’t be able to see their grandchild (we have already offered to drive down once a week)
i will need to work 5 days a week to pay the mortgage, so there will be some stress
school holidays will be tough as I’m self employed, but can be manageable, hopefully we can make friends in the village especially with other parents, and share kids over holidays?
medium garden- prefer one with a view

I just don’t know if this is worth it, worth the stress for the next 2 years while interest rates high

the other option is to wait a year, try sell our home, then find another older home (can be anywhere), but slightly cheaper (but then we have to pay stamp so still need to work hard for 1 year to save the stamp duty!) also worried about the problems that come with older properties although the idea of renovation sounds good

hypothetically if the new build property cost £1.5 million - stamp paid, part exchange LD
and the older smaller property costed £1.2 million
what would you go for?

should I take the stress for 2 years and work hard for the mortgage? Then we would remortgage after 2 years? Or should we wait a year and get a cheaper property but pay the stamp and risk the renovations

we have reserved the new build but have until Friday to pull out!

tia! Xx

I think wait, you didn't list the biggest con - newbuilds carry a "new" property premium of 10% plus. On the figures you mentioned that could be an uplift of £150k for the privilege. Prices are also falling nationally so you could quickly be looking at a large loss if the unexpected happened and you needed to move again in the near future.

Such a big decision to make. We’ve recently bought a new build and reasons were that it was the most affordable option and we wouldn’t need to renovate as we have a toddler and busy work schedules. We were also in the same situation in the sense that we moved away from family. So for us we chose house over living close to family because we fell in love with the house and they are now 45mins away. In our decision we factored in childcare costs as well as working hours so we’d have as good work/life balance as possible.

My questions to you are, will you be happy working more hours and missing out on family time? Will you also have time to enjoy your home if you’re working more? If you buy an older house will you be able to manage renovations? Will you have enough money to cover renovation costs? Also I would think about childcare and try to organise it between yourself and partner rather than relying on “future friends”. Perhaps nursery or after school/holiday clubs when older? Also why should you take your toddler to see the grandparents all the time or can they not come to you? If you move, taking your toddler once a month to see them is reasonable as once a week might become too much especially that you’ll be an hour away.

If you move into the new build and interest rates remain where they are, will you still be able to afford the mortgage after the 2 year fix? If you can afford it at the current interest rate I would go for it.

I would wait until the right house comes up in the place you ideally want to live in - you’ve always wanted to live in Bucks so why be swayed by one fancy house/development somewhere else?

Childcare will be a real issue if you have no family nearby , I know from personal experience it costs a fortune. You very much cannot rely on local friends to support you enough in this, even if you are lucky enough to make good friends which isn’t guaranteed. The most I could manage was occasional swaps re school pick ups. The one friend who looked after my child in the school holidays was a registered childminder and I paid her.

All very helpful thank you! We pulled the plug this afternoon and are staying put for now.
I think I wouldn’t be able to have nice family time with working more.
grandparents say they won’t be able to travel an hour away- we live 10 mins away from them, it’s convenient and they look after him for half a day a week. He goes to nursery three other days usually.
like the fact they are close but we have always wanted to move out of London.
malai decided the mortgage rate we are paying is too high, especially as I’m self employed and anything can happen.

so pulled the plug and feeling a bit happier!

going forward, I don’t know what’s best - old home with risk of renovation. New home with overinflated price and small rooms and small garden. I wish the answer was easier!

Think,you were right to pull out. Having nearer childcare would be much easier.
House prices may continue to drift downwards or just remain us they which would make property more affordable for everyone, thus making your house more saleable. The house builders weren’t doing you any favours. Paid stamp duty always seems such a pull but you need to look at the overall package.
There will be other new houses. Do you really need to have such a big mortgage and house? I would settle for a cheaper smaller house which would ease the pressure on you.