Buying off plans...deposit 15%?

F

FiaRua

Guest
Hi

As a first time buyer I was expecting to only have to save 8% of the total value of the house and decided to buy off plans to buy some much needed time to pay for extra's, furniture etc

One particular development in Co Cork attracted me and I decided to take a leap and go for a house worth 320k
until i saw that the deposit is 5k with 15% (less the 5k) to be paid on contract

Isnt that stage one of the old stage payments system which I thought was abolished
Or is this typical?...I dont feel like financing 48k for 12 to 18 months until the house is ready
 
The €5K is a booking deposit and the balance of the 15% being paid on signing of contracts is standard for most new developments - however some would stipulate 10% as opposed to 15%! It's not a stage payment system.
You can always request that you be exempted from the 15% and the builder may accept this - be prepared for rejection though....
 
Hi,
This is not standard – 5k plus 15k is about standard, not 15%. They are obviously getting worried about people pulling out of purchases by the time the property is built (as property may be worth less by then). You would be crazy to pay this deposit in the current market. You would be far better advised to look at second hand and ready to go options in the same area.

i was recently waiting 24 months for an apartment that was promised in 6 months - and I had to fund the 20k deposit for that time. In the current market you would be foolish to pay 48k.
 
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