New development pricing

Ladybug14

Hello everyone

I’m looking at buying a new build later this year. I was nosing at the last phase of the same development and there is about 4 houses in that phase that sold for 20-40k less than the asking. They don’t appear to be smaller. Can anyone shed light on why they might have been cheaper so I can try to jump on them in the next phase?

Many Thanks
Ciara

TheSheriff

Ladybug14 wrote: »

Hello everyone

I’m looking at buying a new build later this year. I was nosing at the last phase of the same development and there is about 4 houses in that phase that sold for 20-40k less than the asking. They don’t appear to be smaller. Can anyone shed light on why they might have been cheaper so I can try to jump on them in the next phase?

Many Thanks
Ciara

Possibly worse aspect/location within the park ? Smaller square footage ? Sold to the council ?

Although 40k seems like a bit much.

Ladybug14

Thanks a million for replying

They don’t appear smaller from the plans on the site/type of build. Was hoping it wasn’t the council getting an amazing deal.

Would the estate agent tell me or are they trying to hide the cheaper one??

Panjandrums

Vat isn't included on the PPR for new builds.

Ladybug14

Thank you for your reply. It’s showing both price before tax and then sale price

Panjandrums

Panjandrums wrote: »

Vat isn't included on the PPR for new builds.

I presume vat is included in all the prices you see online though? ie; if a new development has houses at 200k, then they're 200k inc. vat?

(not really looked at new houses before, but i'm assuming vat is included in the price, and it's not a con to make things look cheaper than they are?)

Panjandrums

[Deleted User] wrote: »

I presume vat is included in all the prices you see online though? ie; if a new development has houses at 200k, then they're 200k inc. vat?

(not really looked at new houses before, but i'm assuming vat is included in the price, and it's not a con to make things look cheaper than they are?)

Yes the VAT is included on the price you see on Daft, but not on the Property Price Register.

on_the_roots

Property Price Register shows prices without 13,5% VAT that is applicable to new builds. So Market_Price = Registered_Price/0.865

Make sure the price you are seeing is the Market Price, not the Registered Price. This would be quite strange having about 40k less on this unit. In general builders never do that, actually they use to increase prices on subsequent phases of the development.

cubatahavana

We bought a new build in December. It is part of a development of 20 houses (4 and 5 bed) and 28 apartments.

One 4 bed in 06/2019 was 745k. 5-bed (very similar square footage, but with an extra bedroom) was 795k.

Ours was the exact same house to the 4 bed, but on the street parallel to it (in front of the apartments). Ours has a potentially better orientated back garden (S-E vs N-W).

We paid 675k.

I'd take a 70k discount any time.

Location and orientation may change price, but sometimes it's worth it

Ladybug14

I would take the discount over orientation too!!! I’m just waiting for the next phase to be launched and I’ll to investigate more. Thanks everyone

cubatahavana

Ladybug14 wrote: »

I would take the discount over orientation too!!! I’m just waiting for the next phase to be launched and I’ll to investigate more. Thanks everyone

In this case, the discounted house has better orientation!

Ladybug14

cubatahavana wrote: »

In this case, the discounted house has better orientation!

Oh sorry. Well then even better. Do you know why yours was so much cheaper?? Was it for sale for a while?

Could have been purchased by an investor.

Browney7

cubatahavana wrote: »

We bought a new build in December. It is part of a development of 20 houses (4 and 5 bed) and 28 apartments.

One 4 bed in 06/2019 was 745k. 5-bed (very similar square footage, but with an extra bedroom) was 795k.

Ours was the exact same house to the 4 bed, but on the street parallel to it (in front of the apartments). Ours has a potentially better orientated back garden (S-E vs N-W).

We paid 675k.

I'd take a 70k discount any time.

Location and orientation may change price, but sometimes it's worth it

Surely the being overlooked by apartments makes some difference to some people but 70k seems a lot of discount!

cubatahavana

Browney7 wrote: »

Surely the being overlooked by apartments makes some difference to some people but 70k seems a lot of discount!

I think first lot was slow to sell and they reduced the price. Now the non facing apartments go for 695-700. Still, a good bit of a discount. We don’t mind as I’ve always lived in front of an apartment block, and It’s a small block

Gumbo

mariaalice wrote: »

Could have been purchased by an investor.

What difference would that make?
Are you thinking multiple purchase discount?

Gumbo

Gumbo wrote: »

What difference would that make?
Are you thinking multiple purchase discount?

yes of course, do you think an investor purchasing properties in a development would not get some sort of discount.