Should I Buy A New Build Property?
If you are looking to buy a new home, the idea of purchasing a brand new build is an exciting and attractive one for many people. Buying a new build means that you can put your own signature on it and make it your own, knowing that what you do with it, you can make it feel like home.
And a new build can be a great option for all, whether you are a first-time buyer, upsizing or retiring. The opportunity to choose your own furnishings, wall colour, flooring, kitchen equipment and so on is both fun and exciting and can make the whole process of moving home more enjoyable.
The government are also trying to tackle and help with the housing shortage across the UK, pledging to build 300,000 new homes a year by mid 2020.
The initiative from the government gives incentive to buying a new build where a buyer can purchase with as little as a 5% deposit and the government will loan between 15%-40% (depending on where you are in the UK), by using the Help To Buy equity loan scheme. This is a positive move for buyers who cannot raise a larger deposit and gives them a chance to get on the property ladder.
But there are considerations everyone needs to think about when buying a new build home, there are positive and negative sides to the story.
The advantages of buying a new build property
- You will be the first to live in the property
- Maintenance, repairs and redecoration costs should be kept to a minimal for a few years
- New builds usually come with guarantees. A NHBC 10 year warranty and often other development insurances.
- Often buyers can select a choice of fixtures and fittings (however beware of any extra costs)
- New builds are built to the latest specifications which means that there should be no major repairs for a while, also energy supplies should be more cost efficient allowing you to benefit from lower utility bills.
- Another good thing about purchasing a new build is that there is no upper chain to wait around for, so you won’t be stuck waiting for others to go through their process.
- Some developers provide incentives for buying a new build, no stamp duty costs or reduced legal fees, for example.
The disadvantages to buying a new build property
- Sometimes there can be delays in the building timeframe. If this goes on for a period of time, your mortgage offer may expire.
- A high percentage of buyers report snagging issues with their new properties. Always follow up with the developers on any issues.
- Depending on the size of the building project, if you are one of the first to move into a property, you could be living on a building site for a while. This could go on for some time, even years if the building company runs out of funds or the project is not completed.
- If you’re purchasing a property that has not been built yet, you’re spending a huge amount of money on something that you have not seen. Brochures and plans do not always portray the property to be as you imagine.
If you’re thinking about purchasing a new build, get to know the developers before you make an offer. Look around showhomes and get to know the neighbourhood and community. You can research much of this online and find testimonials from people who have bought from the developers in the past.
If the housing project has already been started and there are people living in some of the properties, speak to them and find out how they found the process, were the developers helpful and accommodating?
It’s important to get a feel for the developers and what they offer – along with other residential sites they have built.
You can shop around for new build properties and as like any big purchase, you don’t have to buy the first one that comes along. If you’ve made the decision that you’d like to buy a new build, take some time to look around and research properly, it’s a big decision!
Compare the prices of new builds with older properties. You will pay a premium for purchasing a new build, but it comes with its pros for doing so. Consider square footage and resell value and understanding why you’re paying the premium price that it’s going for and note that the new build price is an asking price and often there is room for negotiations.
Here at Clarkes, we’re here to help you buy (and sell) the perfect property to suit your personal needs. We’ll get to know you, what you’re looking for and be here to guide every step of the way. If you’re after some local estate agent knowledge or expertise, we’d love to hear from you. Get in touch!