Buying a new build

Current studies and reports made by real estate developers and financial institutions within the UK show that the popularity of new build homes have outperformed that of previously owned properties for sale. In fact, for a few years since the financial crunch in 2008, the demand for new builds has increased more than the rest in the housing market.

For several months, it was reported that over 70% of house-hunters are now after new build properties while the rest still look to have previously owned homes.

Before you make a decision yourself whether you want a new build or a vintage home, you might want to see the comparison of advantages and disadvantages below:

What’s Good About New Build Properties?

  • They are now made more affordable with great finance schemes from developers and mortgage lenders.

  • Inclusions like paid stamp duty and rebates are often made as part of the deal to attract more buyers.

  • As they are new builds, there’s less effort for you to make in terms of maintenance and renovation. There’s nothing to repair or restore.

  • Also, maintenance needs will be very minimal. As everything within the house is new, they’re still under warranty – which saves your budget for any replacement. And if properly built, the house is less likely to have any untimely deterioration.

  • They are generally on level C on the A-G scale of energy efficiency – which is relatively excellent and better than that of a second-hand property.

  • A 10-year structural insurance and latent defect insurance policy is generally included.

  • As soon as you assume ownership of the house, everything in it is covered by the builder’s warranty, besides the usual warranty provided by the manufacturers of appliances, fixtures, and fittings in the property.

  • You can move in as soon and as conveniently as it’s completed. There’s no need to wait for previous owners to move out.

  • New build properties are constructed according to recent standards on safety and security. They are usually pre-installed with smoke alarms, a fire door, and fire retardant materials. Security lights, alarms, and locks are also included.

The Disadvantages That May Make You Have Second Thoughts

  • Even if there’s a warranty that covers the repair of the property and replacement of parts, normal wear and tear and intentional damage are not covered by it. You could get frustrated in convincing your builder to assume liability on small damages.

  • Delays in the building completion can happen and you might have to stretch your budget and find a temporarily place to be in and store your stuff as the property is not ready for occupancy.

  • The house may not look exactly as expected. Remember that you’re buying it only based on what was presented in the brochures and model building.

  • You may have limited space in the house as new build properties are constructed on a pre-planned design. You may have a smaller garden than you want or none at all. Besides that you may have to sacrifice your storage space for a bigger space to move around.

In a nutshell, discounts and savings are both possible to get when buying either an old or new build property. Whilst a new built may be more expensive, your developer may agree with you on a few hundred or thousand off the original selling price. They might also offer you an instalment option to be able to get you to buy.

Previously owned properties, on the other hand, may be sold at a cheaper price because of their age and condition. If you can buy it at a much lower price, you can use what you saved for the repair and renovation work.

Whatever decision you make, whether buying a new build or a second-hand property, be sure that you have gathered enough information from professionals to eliminate the possibility of losing a lot of money. You must be very careful about stepping onto the property ladder because a financial commitment as big as this could make you feel great or miserable.