Buying Property

On recent surveys made by financial institutions and real estate developers, new build properties has become popular over the past couple of year compared to the economic crunch that happened in 2008. Reports also have shown that new build prices have outperformed the rest of the UK housing market.

In the past 12 months, the popularity of the new build market rose to roughly 79% of house-hunters wanting them more than second-hand or older homes.

If you’re looking to step on the property ladder but couldn’t decide yet whether to get a previously owned property or a new build, here are several pros and cons you can review to help you decide.

The Upside Of New Builds

  • Finance schemes are made available to make it easier and more affordable for buyers to purchase a new build property.

  • Many of these new homes come with deals like a paid stamp duty and rebates which could mean a lot of savings.

  • If you’re not the DIY type and you want less trouble in terms of maintenance, a new build home will be an ideal purchase. You don’t have to check for things to repair and refurbish and you can just conveniently move in.

  • Maintenance of a new build property will be very minimal, given that all the materials used, fittings, and fixtures are brand new and generally still within warranty. If completed property, a new build is less likely to suffer from untimely damage or deterioration.

  • New build properties are energy efficient – generally on a level C on the A-G scale. An A energy efficiency rating may be less likely to happen but this is more efficient than a second hand property.

  • You can expect a new build home to have a 10-year structural insurance policy, as well as latent defect insurance coverage.

  • New build properties give you the assurance of warranty that begins from the official closing date. This means that the built-in appliances, and other installed equipment in the property are covered for 12 months by the builder’s warranty, on top of the warranties by the products’ manufacturers.

  • Without having previous owners to deal with and wait to move out, closing the deal and moving in can be faster and more convenient.

  • New build homes are constructed according to recent safety and security regulations. This means you can rest assured that your new home will include smoke alarms, fire retardant materials, and a fire door. They also generally have security lights, locks, and alarms installed.

What Could Keep You From Buying A New Build Property

  • Even though a warranty for a new build home is present, normal wear and tear and deliberate damage done to the property is not covered. It could cause a lot of stress to convince your developer to take liability over small damages and get them repaired.

  • The risk of not being ready for occupancy may generally be present. Delays in the completion can happen along the way and can bring you to spending out of your budget to find a temporary place to stay in and store your things.

  • You may not get what you are expecting in terms of how the property actually looks compared to what you were shown in the brochures or model home.

  • Space can be an issue as new build homes are created based on a pre-planned design. Rooms may be smaller while detached homes may have limited garden space or none at all. You may have to sacrifice a storage space to maximise your floor area.

Just the same as being able to get a good discount on existing properties, new builds can also offer you the same perk. Whilst the latter may be generally more pricey, developers can cut a few hundred or thousand pounds off the selling price and also offer an instalment option.

On the other hand, previously owned homes can be sold at a cheaper price based on their condition. What you can save on a bargain deal for an old house can be used for the renovation to add value to it.

Whatever kind of property you decide to purchase, whether it’s an off-plan or a vintage home, make sure you seek proper advice from real estate professionals and a knowledgeable solicitor to avoid any trouble. More importantly, take all the necessary precautions as you step on the property ladder as such is a huge financial commitment that could either make you or break you.