New to new build, keen to get going but talk about bad timing...

[DAMcN]

Hi, so we've sold our flat and moved into rented accommodation, we're sitting on our savings and raring to go when the Govt decide to go rogue and crash the economy. Anyone on here who's thought this through? We'd ideally intended to buy land and design from scratch rather than another refurb in London but have no idea whether to wait, to change tack, to move quickly... anyone know enough about the likely affects on property prices vs land prices?

 

[JohnMo]

A day is along time in politics, everything we thought was true a week ago has all been changed today.  But I would think property and land prices will fall sooner rather than later.

[joe90]

I always thought buying a rough bungalow or such and demolishing it is a good idea, existing property, existing services and you still get to save the VAT.

[SteamyTea]

16 minutes ago, DAMcN said:

Govt decide to go rogue and crash the economy

As you are London based, you probably have a large pile of cash. Wait.

Or look a bit further out I used to live in Hertfordshire and Buckinghamshire, but work in London. My commute was usually quicker. 

 

Jeremy Hunt used to be in charge of the NHS.

'I may not be a gynecologist, but I know a Hunt when I see one' 

 

 

 

 

[Happy Valley]

Finding the right plot/property/project is probably going to be the hardest thing even in an economic downturn. 

 

There's a lot of cash out there with upper middle classes waiting to pounce on the right project for them irrespective of the economic climate. 

 

There is never a good time to do most things if you look into them heavily so I would personally just keep looking and get on with it.

[Kelvin]

It’s a tough call. A great plot is a great plot at any time. Folk with money will buy it and possibly just sit on it. We bought a plot at the start of the year, have planning and looking to start building early next year. We won’t need mortgage but have had to compromise on what we originally wanted due to cost increases. 

[SarahG]

We have spent the last 10 years saving up to do our self build, so I know what you mean about bad timing. We already have the plot, we live in the bungalow that we are planning to demolish. I'm just hoping that somewhere we can find a happy medium between interest rates, reduced salary multiplier on mortgages, build costs and doing as much as we can ourselves. We are submitting our drawings to Building Control this week so almost in the position to get some quotes. We almost moved house last year, but decided we had waited so long we had to try the build here. Just hope we made the right decision. We are in Surrey, close to London like you so everything seems to come at a premium. So far I have been able to find reasonable priced professional services after a lot of searching!

[Canski]

It is a tough call. I bought a plot for 2 houses in February. Then the world turned upside down. I need to borrow to build both houses and one I was going to keep. I'm weighing up my options now and last night a good friend offered to take one plot off me for cost plus the cost of obtaining planning and bat mitigation, demolition etc.  I am seriously considering it to avoid borrowing money at these interest rates. 

Edited October 18, 2022 by Canski

[Bozza]

Your cash savings are currently devaluing by circa 10% per year (inflation) minus whatever interest rate you are getting after tax.  
 

So effectively if you “hold off” for cheaper house prices / plots they need to fall by about 10% to beak even which I think is unlikely.  
 

In Jan 2020  I put my house on the market in preparation for my self build being completed later that year.  I received an early offer at valuation which was pretty good at the time.  I had the choice of accepting that offer or holding off for a better one.  I decided not to be greedy and accept the offer as it mitigated any risk to me.  Then covid came along and if I had held off I probably wouldn’t have received any offer nor sell the house and be screwed financially.  The point of my story being you cannot predict what’s round the corner.  The perfect scenario for you of a dramatic price crash on great plots and a massive reduction of the cost of building materials and labour I think is fairly unlikely TBH, especially in the London area.

 

My own area has seen localised price crashes in recent history when the oil price tanked a few years ago.  The great houses etc , and plots which are rarer, seemed to still sell ok.  It was the crappy houses on estates, and flats that took the worst hit in our price crash.
 

 

[Adsibob]

On 17/10/2022 at 18:04, DAMcN said:

Hi, so we've sold our flat and moved into rented accommodation, we're sitting on our savings and raring to go when the Govt decide to go rogue and crash the economy. Anyone on here who's thought this through? We'd ideally intended to buy land and design from scratch rather than another refurb in London but have no idea whether to wait, to change tack, to move quickly... anyone know enough about the likely affects on property prices vs land prices?

 

Have you thought about moving abroad?