Do you want to snap-up a new-build flat at a discount as the market struggles? You had better join the queue. The head of Investec, a private bank, says some of the world’s richest investors are lining up to add new-builds with reduced prices to their portfolios.
Thea Carroll, Senior Buying Consultant at The Buying Solution is quoted in The Times offering tips and insights. The smaller the developer the more likely the discount. “Larger developers tend not to have cashflow issues,” she says.
Thea also adds that you should check how well the development is selling. “Knowing how many properties have sold may indicate if a developer is desperate to sell. The more unsold properties the more likely it is that the developer will be open to a discount. It’s worth asking an estate agent what the property would have been worth in 2014-15, when the market was at its peak. “If the numbers are roughly 10-15 per cent higher than what it is valued at, you know you are in the right ballpark.”
The Buying Solution advises that you can be more hard nosed about it. Unlike buying a resale property, which involves negotiating with someone who may have an emotional attachment to it, new-builds don’t, so you won’t offend anyone. She says: “When buying a new-build you are negotiating with a company, which has targets and multiple units to sell. Remind yourself, it’s not personal, it’s business.”
Link to online article here: https://www.thetimes.co.uk/article/how-to-negotiate-a-newbuild-discount-zvrk298cr