Would you a buy a 2 bed new build flat in Croydon for £200k.

By on July 29th, 2009

I’ve been offered a two bedroom flat costing £200k in New South Quarter development by Barratt Homes in Croydon. I’ve to pay £6k for parking as well. The flat is about 650 sq ft with one good size bedroom, a smaller bedroom and a living room with open plan kitchen.

I’m buying the flat under the Homebuy direct scheme, where the govt and the develope are offering 10% deposit each. I’m putting down 5% and raise a mortgage with a bank for the remaining 75%. I will not be able to buy the flat without government/developer assistance.

The problem is that most of the flats in Croydon seem to selling for about £160k-180k, but these are mainly house conversions or even purpose built in small 1-2 storey blocks.

Barratts may be charging a premium of about 25k for the funding assistance and for the fact that it is a new flat in big modern development.

I wonder whether it is a decent buy. Or am I buying a highly overpriced flat. People living in Croydon, please can you provide your opinion.

Many thanks