The property boom is taking its toll on renters who are going to ever greater lengths to secure a home.
That’s because a shortage of available homes is pushing up monthly rents and deposits, and sometimes leading to bidding wars.
For many renters, it will be even more vital to secure a home of their own, where they have the option of buying an existing property or looking for a new build property.
There are pros and cons to both, but new homes have some advantages including builders offering incentives like helping with the deposit, part-exchange if you are an existing homeowner, paying legal fees and stamp duty.
Depending on eligibility, it may be possible to benefit from Government incentives such as Help To Buy and a big bonus is there is no chain to worry about, so they will not be gazumped.
They appeal to homebuyers for any number of reasons including:
- The money they spend will not be dead money as it is with rent. They will eventually own the property.
- Many housebuilders and developers offer properties off-plan, which means homebuyers can plan their home before it’s even built.
- Properties are usually built to higher environmental standards than older homes, so savings can be made on rocketing energy bills.
- For peace of mind, properties come with guarantees of up to 10 years with NHBC’s warranty.
- When money is tight in those early years of a mortgage, repairs and redecoration should be minimal.
- Buyers can tailor the property interior to their preferences.
- While new homes are generally more expensive, it may take some time for the price to appreciate, but eventually, they should be able to sell with a tidy profit.
Some things to consider before the big decision:
- New houses tend to be smaller, with smaller gardens.
- What is the quality like? Take a look at the builder’s other developments to get a feel of how your property may look.
- If you are one of the first into the development, you may suffer from a substantial period of disruption while the other properties are completed.
- It may be more difficult to get a mortgage as lenders can see these properties as riskier. As mentioned earlier, this is because of the possibility that the value of the property may fall in its early years.
For help and advice on matters relating to the residential property sector and new build homes, contact our expert team today.
