Those of you considering upping sticks and moving on to pastures new may well be considering investing in a newbuild property, which the government is doing its best to encourage people to do. And given the shortage of properties on the market at the moment, perhaps a newbuild is the most sensible way to go.
But as with anything, doing the appropriate amount of research is vital, whether you’re looking at a newbuild or an older home so that you know you’re making the right decision and buying the right home for you.
Speaking to the Independent, managing director of Surrenden Invest Jonathan Stephens explained that there are indeed financial incentives involved in the purchasing of a newbuild and they can help to make the house-buying process a lot more affordable.
He noted that some developers are happy to offer bigger discounts on homes than private sellers and the help-to-buy scheme can be useful for those taking their first step onto the property ladder.
“Newbuilds also come with peace of mind, in the form of the National House-Building Council (or equivalent) ten-year warranty, which covers everything structural – from plumbing and wiring, to the roof. The appliances will also have their own warranties, usually for at least two years,” Mr Stephens went on to say.
However, before you head out to get your mortgage for your nice newbuild home, be aware that there could possibly be a downside to this kind of property as well.
Chief executive of Webuyanyhome.come Elliot Castle told the news source that much like buying a brand-new car, property prices fall the second the homeowner moves in and they typically only hold their price if they’re lived in for long enough.
It’s also worth noting that a common complaint from those who do already live in newbuilds is that the rooms are on the small side because developers are more interested in incorporating valuable amenities and increasing the number of bedrooms.
LABC Warranty research, in fact, shows that newbuild living rooms are nearly one-third smaller than similar properties built back in the 70s.
Visit the HomeOwners Alliance website for more advice relating to the pros and cons of buying a newbuild versus an existing property.
Some of the pros include having a home that’s a blank canvas with fresh paintwork, bathrooms and kitchens and so on, certain incentives to facilitate the sale (which could include developers paying the stamp duty on your behalf!), and reduced bills because newbuilds have to comply with all the latest building regulations… so they’re far more energy efficient.
And some of the cons include the fact that a property that’s only a year old may drop in value because buyers will look at newbuilds on the same development over the road that have just popped up… so your home will no longer be viewed as ‘brand new’.
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