Buying New Homes in a Falling Market. Which incentives to avoid.

[@Abigail-sx8mt]

This is a really good one! Live in a new build. I made sure I read everything in detail, asked my solicitor questions, took a builder to viewings, and made regular visits. Be clear on the warranty e.g using the loft = voids the warranty. Look at the upgrade incentives e.g. are the integrated appliances a good make. There was a waiting list for the property I bought, I got it by being in a position to purchase, deposit in the bank, mortgage in principle, solicitor & I visited the show home on a regular basis to build a good rapport. They looked after me even after I moved in.

[@sevecc939]

I've noticed that any homes that were new build 3-10 years ago that sold last year didn't really gain any value. That is during one of the biggest booms in housing. Has put me off to be honest. Not because I want my property to be an investment, but because I don't want to lose money. The housing development I live on was probably completed in the years after the last crash. They clearly cut corners on the property as their projected profit decreased (in a wonderful location that makes up for it) the windows and doors installed were awful and were not put in incorrectly. There has been a lot of remedial work over the years. I also know someone who has bought a top level new build and there were a lot of problems on that too. Anecdotal stuff, but it has put me off.

[@frustratedhomebuyer]

Spoke to an agent in Wales this week about a property they've just taken on as a new listing. It has been on since October with a different agent for £335,000, they have now marketed it at £365,000 🤣😂🤣 I queried the ridiculous price in the current falling market and got the usual guff about 'we're not noticing any price reductions in our area as yet' - twas then I asked why of their 33 active listings on RM have 15 been reduced, amounting to 45% of their stock. 'That's a very good question' they said. 🙄

[@Frederik_uk]

Great with the new intro! Thought just having the BBC intro at the start might work on its own then maybe you can have the other clips as an outro... Thanks for the video again Charlie!

[@johntrubridge8885]

Despite being tired very good video Charlie thanks again and nearly up to 10k subscribers 👍

[@MovingHomewithCharlie]

Thanks 👍

[@frustratedhomebuyer]

If you're buying a new build always make sure you're fully aware of the management company charges that you'll be paying for ever and a day (to cover things such as ongoing landscaping of green areas for example) . You have very little if any control over such charges and increases going forward.

[@MovingHomewithCharlie]

Very true!

[@theconspiracyfactualist.144]

Bought a new build on 2016. I paid for an inspection by a snagging company. 80 + snaggs. Sold three years later,the buyer's solicitor has us remove the ground ren,it was a nightmare. The property was freehold.

[@jcs3330]

Great informative video on developers profit per unit sale. On a slightly different note. I recently returned to the UK after buying a property and living in Spain, where leasehold does not exist (you buy the property and you own the 'freehold' ..all the walls ceilings and floors!.When is this (including historical leases ) going to be 'completely' outlawed in the UK It's quite a liberty that these developers want you to buy their product, yet sell the leases to lease management companies to fleece 'their' buyers for the entirety they live there and all who follow. It's about time the government made this illegal, thus letting all buyers and occupants in apartments, buy the lease at the time of purchase. I mean come on,...new build '999' year leases!. they are only in place for the leasehold management sharks to make money!.

[@Abigail-sx8mt]

Question for Charlie. Why do developers only sell to a buyer who has sold & vacated their property. How can you get over this & is there a way to get them to buy your property. I've heard they sometimes buy.

[@stephengreen2626]

So the new introduction explains that you are an agent. You want vendors with attractively priced property which will sell easily as opposed to greedy or optimistic. In your previous articles you have shown a downward trend but drew that proof from a time when the Bank of England has had to track US interest rates, is having to convince the world that the Truss budget was a moment of madness and where a cruel pointless war is being waged. As a landlord I have been shocked at how desperate tenants are to compete for what little property is available. 2023 is likely to a quiet year but many new builds are sold without mortgages. Some landlords with cash is the bank will scoop up cheap property from BTL landlords, particularly from mortgaged landlords like myself who are now facing a loss making couple of years. If you are a first time buyer I would say buy something you can add value to and expect up to 20% reduction. Mortgage rates are based on wholesale market prices, not the Bank of England rate so it is reasonable to hope for slightly better deals later in the year. If you think they will come down 30 to 35% then a lot of people will be stuck renting for ever.

[@MovingHomewithCharlie]

You’re not paying attention. I am not and have never been an agent.

[@nicky_nike]

I would have thought the best incentive is to wait until the crash bottoms-out. From what I read from economic analysts, and the best seem to be Yanks, but a lot of the US market parameters crosses over to the UK markets, banks are in a poor state. This leads me on to wonder how secure are fixed rate mortgages? Looking at mortgage products and their interest rates, I'm thinking that banks don't believe there will be much of a crash. IMHO if prices drop say 30%, and I'm sure they will this time, the banks are going to be overstressed and may renege on fixed rate, or declare bankruptcy. It's happened before with Bradford & Bingley and also Northern Rock. Things are going to be a great deal worse this time than 2008/2009.

[@BigD12396]

Im not sure why anyone would want to buy a new home - poor construction/materials.......and the construction method is usually timber framed.....its not for me!

[@frustratedhomebuyer]

Completely agree - the last two houses I bought were new builds from the big boys and were nothing but trouble and stress with all the problems, snagging issues, having to be there for remedial work. On the last one, I didn't ever dare go up into the loft, just in case I found the Quality Control Manager up there gagged and bound.

[@Natta44]

@@frustratedhomebuyer The amount of funny quality control videos on KZbin from new build inspections is quality to watch. But terryfying for the buyers who bought them, all that money spent on trash new builds 😫

[@time_tells_all]

Hey Charlie, what's the difference between a developer offering you £20K to pay towards your deposit as opposed to offering you £20K cashback? aren't they the same thing, bit confused!

[@honestcommenter8424]

Hi Charlie, I would love to know what you think, I am looking at a new built, they dropped the price 10k couple of months ago, and 10k today. I am worried the house could go now, but also afraid that it loses more value in the coming months, what should I do?

[@emmafournier6903]

Really helpful thank you .

[@MovingHomewithCharlie]

You're welcome!

[@smarterproperty6378]

This is what happens when you let confirmation bias run your decision making.