Should You Invest in a New-Build?
When it comes to buying your own property you’re pretty much faced with two choices – a brand new, shiny New Build, or an existing property. The latter may have been refurbished, but the fact remains, someone else has lived there and that property has a history.
But that’s not all, there are many incentives to buying a New Build house or apartments. And these just aren’t available in older properties. In this Property Loop article we explain the pros of buying a New Build, together with some not-so-good aspects:
- Pros of Buying a New Build
- Is It Easier to Buy a New Build?
- There May Be an Opportunity to Buy Off-Plan
- Getting a Discount
- You Get to Choose the Interior
- Your Utility Bills Will Be Cheaper
- You will get a 10-year warranty
- Easier to Rent Out
- Cons of a New Build
- Waiting a Long Time
- Dealing With the Snagging List
Pros of Buying a New Build
Is It Easier to Buy a New Build?
It’s often easier because you may be able to access financial help in the form of a Help to Buy scheme (which is only open to New Builds). This means you don’t have to save up for such a big deposit. Another bonus when it comes to securing the property is that you’re not in any chain. It’s straightforward, ie you either want to buy it or you don’t.
There May Be an Opportunity to Buy Off-Plan
Buying off-plan is when the development hasn’t been built yet but is just that ie a plan. There are some very clever 3D and AR technology around these days which allows you to ‘walk through’ your home, despite the fact the first brick hasn’t even been laid. It gives you a good idea of what it will look like though, and it includes dimensions. Buying off-plan is often a good idea because the value of the property may have risen by the time it’s built.
Getting a Discount
If the developer is finding it difficult to shift some of the properties, or just wants some sort of ‘rush to buy’ going then he may offer the first few properties at a discounted rate. Here at Property Loop we all agree that this is a great way of getting a bargain Below Market Value (BMV) property.
You Get to Choose the Interior
By that we mean the developer will often give you a choice of tiles, carpeting, even kitchen units etc before they fit them. When you move into an existing property you have to stick with what’s there, or fork out for something more your own taste.
Your Utility Bills Will Be Cheaper
All New Build’s these days must comply with government green energy requirements. That means ideally, they should have an A or B energy performance rating. This is achieved through more efficient heating, insulation and appliances such as Smart Meters so you can monitor how much energy is being used, and where.
You will get a 10-year warranty
In other words, you are insured for up to a decade if something goes wrong with the structure or build of the property – or damage is caused to your home as a result.
Easier to Rent Out
If you’re buying a New Build on a buy to let mortgage as an investment, then you won’t have any problem renting it out (provided it’s in the right location and priced sensibly). That’s because most tenants prefer a New Build to a draughty – and possibly damp – older property. And, as a landlord, there will be fewer maintenance issues to attend to.
Cons of a New Build
The UK government is currently in the process of introducing legislation to ensure leaseholders are given the first opportunity to buy the freehold of their New Build. This has been a controversial topic and meant many New Build owners in the past were out of pocket. Always make sure you get the freehold so you don’t end up paying a fortune in ground rent to another individual or company.
Waiting a Long Time
Developments don’t always go to plan – a time plan, that is. It could be delayed for whatever reason and in the worst scenario a developer could go bust. Just make sure you visit the development regularly to keep on top of what’s happening.
Dealing With the Snagging List
It’s a bore but it’s got to be done. You’ll have to check every little thing, such as whether the sockets are connects properly, there’s no gap between the door and the door frame etc. That’s because you have a limited time to point these out to the builder and get them fixed.
Thinking of investing in a New Build property? Then contact our expert team here at Property Loop today.
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