Would you buy a new build home?
Discussion
We have just received a mortgage promise for well in excess of what we would need to spend to buy something decent and appropriate for us in Edinburgh on a 95% LTV mortgage. Young professional couple with no real commitments. We didn't really intend to buy any time soon but in theory we could, however, as most properties in Edinburgh tend to go over home report value and you only get a mortgage to home report value we would likely need to save for another year or so before we could buy the normal first time buyer property - one or two bed city centre flat. However, we could buy a new build tomorrow with a 5% deposit. Most of the developments are pretty far out of the city centre, but that compromise means we could easily afford a 4 bed detached with garage and driveway. I also have know someone quite senior in a major house builder who can get us the extra bits and pieces thrown in at cost if we bought with them (though they are not a particularly well reviewed house builder...). It would likely be 200-250k for two bed city centre flat (but would need 20-40k in cash) or 250-350k for a 3 or 4 bed new build with garage (but would only need 5%, 12.5-17.5k, plus fees and stamp duty).
My concerns with a new build are depreciation, snagging issues, being stuck on a soulless housing estate in my late twenties, and the additional commute (would likely be bus or train depending on transport links at development). However the advantages seem to be modern well kitted out home under warranty and guarantee, that we would not need to move from for many years (I'm sure in a few years we would want to upsize from a City centre flat). It would also get us on the housing ladder a year early.
My concerns with a new build are depreciation, snagging issues, being stuck on a soulless housing estate in my late twenties, and the additional commute (would likely be bus or train depending on transport links at development). However the advantages seem to be modern well kitted out home under warranty and guarantee, that we would not need to move from for many years (I'm sure in a few years we would want to upsize from a City centre flat). It would also get us on the housing ladder a year early.
Edited by Integroo on Tuesday 14th August 08:41
g3org3y said:
^Agreed. I think the major question is location here given your current work/life balance, especially in a great city like Edinburgh.
This is a concern. I work long hours, often 10-12 hour days in busy periods. I can't drive to work in Edinburgh. Do I really want to add a lengthy bus commute onto that? I think a house near a train station would be okay but bus or park and ride would be a bit tiresome. Condi said:
Choose designer lingerie, in the vain hope of kicking some life back into a dead relationship. Choose handbags, choose high-heeled shoes, cashmere and silk, to make yourself feel what passes for happy. Choose an iPhone made in China by a woman who jumped out of a window and stick it in the pocket of your jacket fresh from a South-Asian Firetrap. Choose Facebook, Twitter, Snapchat, Instagram and a thousand others ways to spew your bile across people you've never met. Choose updating your profile, tell the world what you had for breakfast and hope that someone, somewhere cares. Choose looking up old flames, desperate to believe that you don't look as bad as they do. Choose live-blogging, from your first w
k 'til your last breath; human interaction reduced to nothing more than data. Choose ten things you never knew about celebrities who've had surgery. Choose screaming about abortion. Choose rape jokes, slut-shaming, revenge porn and an endless tide of depressing misogyny. Choose 9/11 never happened, and if it did, it was the Jews. Choose a zero-hour contract and a two-hour journey to work. And choose the same for your kids, only worse, and maybe tell yourself that it's better that they never happened. And then sit back and smother the pain with an unknown dose of an unknown drug made in somebody's fking kitchen. Choose unfulfilled promise and wishing you'd done it all differently. Choose never learning from your own mistakes. Choose watching history repeat itself. Choose the slow reconciliation towards what you can get, rather than what you always hoped for. Settle for less and keep a brave face on it. Choose disappointment and choose losing the ones you love, then as they fall from view, a piece of you dies with them until you can see that one day in the future, piece by piece, they will all be gone and there'll be nothing left of you to call alive or dead. Choose your future, Integroo. Choose life.
But seriously, it makes little difference. My 1970s council house is built of cardboard and plasterboard but works well. My mates new build is very efficient, well insulated, and full of mod-cons. His shower still leaks, mind.
Also depends where in Edinburgh - Leith is central enough to be considered town, Cramond is lovely and like a village within a city. Both would make great places to live. Anywhere else out of town? You know, really, where you want to be. Is having one of the best cities in the UK outside your front door, with all the bars, clubs, and entertainment that offers worth living in a smaller place for 2 years?
The, the problem is more we can't afford to buy centrally as we need much more cash up front due to properties going above home report value, so the option is buy a new build or rent for longer and save to buy a two bed flat in the centre. k 'til your last breath; human interaction reduced to nothing more than data. Choose ten things you never knew about celebrities who've had surgery. Choose screaming about abortion. Choose rape jokes, slut-shaming, revenge porn and an endless tide of depressing misogyny. Choose 9/11 never happened, and if it did, it was the Jews. Choose a zero-hour contract and a two-hour journey to work. And choose the same for your kids, only worse, and maybe tell yourself that it's better that they never happened. And then sit back and smother the pain with an unknown dose of an unknown drug made in somebody's fking kitchen. Choose unfulfilled promise and wishing you'd done it all differently. Choose never learning from your own mistakes. Choose watching history repeat itself. Choose the slow reconciliation towards what you can get, rather than what you always hoped for. Settle for less and keep a brave face on it. Choose disappointment and choose losing the ones you love, then as they fall from view, a piece of you dies with them until you can see that one day in the future, piece by piece, they will all be gone and there'll be nothing left of you to call alive or dead. Choose your future, Integroo. Choose life.But seriously, it makes little difference. My 1970s council house is built of cardboard and plasterboard but works well. My mates new build is very efficient, well insulated, and full of mod-cons. His shower still leaks, mind.
Also depends where in Edinburgh - Leith is central enough to be considered town, Cramond is lovely and like a village within a city. Both would make great places to live. Anywhere else out of town? You know, really, where you want to be. Is having one of the best cities in the UK outside your front door, with all the bars, clubs, and entertainment that offers worth living in a smaller place for 2 years?
Perhaps I'll see if there's any luxury new builds in central areas - get less for your money but might be worthwhile.
Condi said:
Ah, gotcha. Ummmm..... bank of Mum and Dad?
Kinda comes down to what YOU and your gf want to do. Where is your heart? Just do that, you'll be unhappy with anything else.
But as for any reason why you shouldnt/cant buy a new house? Non at all. They build 150k or however many a year. Cant be that much intrinsically wrong.
Sadly not. It's frustrating as the bank will lend us a massive amount of money, much more than we need! Kinda comes down to what YOU and your gf want to do. Where is your heart? Just do that, you'll be unhappy with anything else.
But as for any reason why you shouldnt/cant buy a new house? Non at all. They build 150k or however many a year. Cant be that much intrinsically wrong.
Lots to ponder.
jonny70 said:
"Young professional couple with no real commitments" definitely the City centre then! Edinburgh is such a great city and to live in the city centre...
If you want to settle down /suburban life and start a family then move to the suburbs otherwise I would stay in the city centre.
That's what I'm starting to think...currently rent minutes from Princes Street...do I really want to live in Falkirk or the outskirts? If you want to settle down /suburban life and start a family then move to the suburbs otherwise I would stay in the city centre.
Shame the housing market for city centre flats is so hot. Will take a few years to save the 40k or so required.
emicen said:
It depends on what floats your boat. If regularly going out is still important to you, then the suburbs or further will always be a hinderance. That being said, we now live at Heartlands, day/evening out in either city is doable by train from Armadale, want to stay out later, night bus stops at Harthill services.
Previously she lived Edinburgh city centre and I lived Glasgow city centre. We wanted a dog, a driveway and a garage so the move made sense. With the amount of new build in the central belt at the moment, there’s a great selection available. (After a decade of living several floors up in a flat, a bungalow with only 4 stairs off the deck out back is pretty damn awesome
)
I looked at an estate in Heartlands. How is the commute? I would much prefer a detached with a garden and a garage rather than what is almost a studio flat that I currently rent, for £1000 pcm ...Previously she lived Edinburgh city centre and I lived Glasgow city centre. We wanted a dog, a driveway and a garage so the move made sense. With the amount of new build in the central belt at the moment, there’s a great selection available. (After a decade of living several floors up in a flat, a bungalow with only 4 stairs off the deck out back is pretty damn awesome
)Shame that if you want a garage, you need to have four bedrooms! Not sure what I'd do with the other three ...
Toaster Pilot said:
OP you might want to check on a couple of things
You mention 95% LTV - many mortgage lenders won’t lend at that for new build, 85% being more usual.
If you meant using Help to Buy with 5% cash, 20% equity loan and 75% first charge LTV, purchase price is limited to £200,000 in Scotland.
I have a mortgage promise for 95% and no mention of it not being applicable to a new build but worth checking, and it wouldn't be using an equity loan, but the H2B LISA. You mention 95% LTV - many mortgage lenders won’t lend at that for new build, 85% being more usual.
If you meant using Help to Buy with 5% cash, 20% equity loan and 75% first charge LTV, purchase price is limited to £200,000 in Scotland.
Toaster Pilot said:
I’m in the process of buying a “new build” in England - small developer and a 1900s house that has been completely gutted and redone with just the original walls left rather than a “proper” estate type thing though.
Garemberg said:
i think you need to refine your ESPC search!
If you want new build and city centre, there's a few 300k studio flats and a luxury development just down from Haymarket where the apartments are 1m to 2m. That seems to be it! Obviously used is less expensive. (Though problem as noted above is 200k two bed selling for 230 or 240k).
Garemberg said:
There is a 2 bed maindoor 110 Sq M with Garden on Carlton Terrace at the moment @ 525k it will go for circa 620 - bonkers money but well below a Million.
The flats you mention in Haymarket are at the old School - it's basically Hogwarts so will skew your figures.
I really suggest you speak with an established Edinburgh Solicitor - I can PM you mine if that helps
Still much above what I can afford and crazy money ! The flats you mention in Haymarket are at the old School - it's basically Hogwarts so will skew your figures.
I really suggest you speak with an established Edinburgh Solicitor - I can PM you mine if that helps
Thanks for the offer, but I'm not likely to buy for a while yet.
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