Buying a New-Build Property? Here’s Some Quick Tips For You
Reports had it in the recent years that new-build properties have risen in terms of popularity in the housing market. Compared to previously owned and vintage homes, new-builds have become more in demand, especially with first-time home buyers. When various schemes were implemented to allow home buyers affordable deals, home buyers have become more interested in new-builds.
If you're looking to get your own property, whether as an investment or a proof of your hard work over the years, have a look at the list of new build advantages and disadvantages to help you make a decision.
What's great about new build properties?
Developers and mortgage lenders are now offering great deals to help you afford a new home.
Certain promos are also being used to market new build homes, such as the inclusion of stamp duty and rebate offers in the selling price.
If you are not savvy in DIY work, new build properties will save you from it. As they are new, there's no need for you to repair or restore any part of the building.
There's less to maintain in the property and everything in it is still under warranty. You won't have to buy replacement materials and parts. And if you house is built to standards, it is not likely to have an untimely wear and tear.
New build homes are energy efficient - with an efficiency rating of C on an A to G scale. Way better than older properties. Although, the chances of getting and A efficiency rating is not very likely to happen
Your new build home is generally covered by a 10-year structural and latent defect insurance policy.
As soon as the keys are turned over, everything that came with the building is under the builder's warranty, on top of individual manufacturer's warranty.
Moving in is faster and more convenient as you won't have any previous owners to wait for to move out.
New build homes are built under security and safety standards, which means the building comes with security lights, alarms, locks, a fire door, fire retardant materials, and smoke alarms.
What issues could you be facing?
Frustration comes in when convincing your builder to cover the repair of small damages in the house. Although you are covered by warranty, deliberate misuse and normal wear and tear are not generally covered by the warranty.
You might be unable to move in when expected if a delay in the completion happens. That means you'll have to rent a temporary place to stay in and store your things.
You're buying based on what you see on a brochure and model home so it may not look exactly as you expect it when completed.
Space can also be an issue as new builds are pre-planned and pre-designed. You may not have a garden as you wish or have a very small one. Also, your storage space may be limited to give way to a bigger area for moving around.
While buying either an older property or a new build could provide you the benefits of savings depending on how efficient you work it, you still need to carefully assess if you can afford it. A new build property's value may be more expensive but you can cut a deal with your builder to get a substantial discount and other inclusions. Installment options can also be discussed as you close the deal.
On the other hand, buying a previously owned home at a much lower price will also help your budget. You can use what you saved from buying the cheaper old house to have it renovated before you move in.
Whatever decision you come up with though, make sure that you have discussed the ins and outs of property buying with a conveyancing solicitor or a real estate professional to avoid any financial trouble in the long run. Remember to take this step with utmost care as a financial decision like this can either make you or break you.