Author Topic: Help with buying off-plan  (Read 6508 times)

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Scarlet

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Help with buying off-plan
« on: June 24, 2011, 09:49:31 am »
Hello

Just found your site and hoping to get some info or be pointed in the right direction by more experienced members.

I am looking to buy a home (to live in) off-plan. I do not need to live in it immediatley and was hoping by buying at the planning stage I could maybe buy at a less than market price, I also have a very large cash sum saved from life-long earnings and investments. How realistic is this and what are the discounts available?

Ok that's the first question. Second question is how do I find the developers active in my area.  Do I trawl through my council's planning permission website? Or any other suggestions?

Thanks in advance!
Scarlet


Philofacts

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Re: Help with buying off-plan
« Reply #1 on: June 24, 2011, 10:18:40 am »
Any small house builder would love to have a buyer signed up at an early stage, especially in this market.
You would need to look in estate agents windows in the area you are interested in.

All the larger housebuilders have schemes where you can reserve a new home "off-plan".  Some call it "early-bird" some "upfield reservations"  
With the larger housebuilders, a house not started may not command the discounts you are looking for.
They will be more interested in selling stock homes and these get the discounts.

There is also the question of timing.  see www.brand-newhomes.co.uk/when_to_buy_a_brand_new_home.htm

See also www.brand-newhomes.co.uk/new_home_news.htm#Buyingoff-plan

Regarding finding developments there are lots of property finder websites.  You could try the Zoopla one advertised on the above page.
Trawling a council planning website would be the easiest way in my opinion.

Finally, be aware that you need a specifc date of when the home will be started and more importantly when it will be finished.  
In the current market you may end up paying more for the home by reserving early than you would if you wait.

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The Prophet

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Re: Help with buying off-plan
« Reply #2 on: June 24, 2011, 10:28:48 am »
I agree watch out for the market and be absolutely sure you are happy with the price you agree to.

Scarlet

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Re: Help with buying off-plan
« Reply #3 on: June 24, 2011, 11:09:22 am »
Thank-you. I agree with you both, in the current market in any other area of the UK than where I live I would wait in this market BUT I am in central London (W2 area). In my humble opinion all the factors which caused the last crisis we had and the consequent drop in property prices in my area in 2009 of around 30% off-peak are still there so it might happen again or it may not and  none of us has a crystal ball. At present, my local market is resilient at 400k or thereabouts. And my cash and my ability to  move quickly have little currency with EA and vendors who want the highest offer on the table even if said potential buyers are mortaged to the hilt. So while I bide my time and stay registered with agents I just started to wonder if there was another way to buy below the current market value. I'm very grateful to you guys for taking the time to reply.

Scarlet

Philofacts

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Re: Help with buying off-plan
« Reply #4 on: June 24, 2011, 11:40:28 am »
In London, your best bet would be to early bird on an apartment scheme.

Check the house builder's websites for new developments and the Evening Standard for house builder's opening promotions.

Crystal ball time, the London market is sustained at the moment by city bonuses and overseas buyers in my opinion. 
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Scarlet

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Re: Help with buying off-plan
« Reply #5 on: June 24, 2011, 11:59:56 am »
Thanks again. Yep agreed - finance industries and foreign currencies seeing London as a good buy and apparent safe haven. These seem to account for recovery since 2009 - we are almost back to peak prices in my area. My common sense tells me this cannot go on forever - tap will run dry at some point just question of when.  ::)

Philofacts

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Re: Help with buying off-plan
« Reply #6 on: June 25, 2011, 09:02:54 am »
The London "boom" could be caused by those who dont want to keep their money at home in failing economies like Greece or Egypt even Spain.
In addition, as the Pound goes lower the cheaper London properties look to foriegn buyers.
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