When it comes to buying a property, you will normally have two choices available to you: buying either an old or a brand new home. You can build a house, too, of course, but that’s another story entirely. There are pros and cons of both, of course, but when it comes to new build properties, there are a few extra things to consider. In this guide, we’re going to take you through everything you need to watch out for. Let’s get started with some of the basics.
Getting a mortgage
Obtaining a mortgage for a new-build property can sometimes be a little more tricky than for an older home. For example, mortgages might only be valid for a limited period – far shorter than for an old home. Some banks are also putting bigger restrictions on the amount they offer for brand new homes. While this might not be an issue for most people, it’s worth considering and making sure that your application has the best chance of success.
Finding a property
Every town and city in the country have new homes cropping up all the time. Most of them are built by property developers – who might be housing associations or private companies. Check your local business directory to see what’s available in your area, and also look for homes and apartments for sale in your local paper. The property companies tend to have big marketing drives in phases, so they fill up the homes as quickly as they go up.
You can often get the best price for a property by buying off-the-plan. Off-the-plan is when the property developer puts the homes on the market before building them. It raises valuable funds for them which they put towards completing the construction. It also guarantees them a few sales and fills up the properties as soon as they are ready. It’s worth thinking about, as because there is a slight risk for the buyer, the developer can often offer a lower price. That said, when new-builds get their initial valuations, it is often different to what it might be when all the homes are finished. The gamble for the buyer is – will it be higher or lower than what they paid.
Looking at the advantages
Here are plenty of advantages to buying a brand new home. You will normally get cover for defects for a particular period, and your home will have excellent energy saving specifications. There are government incentives, too, which can shave a significant amount of the cost. And, if you buy off-the-plan, you can often personalise your property with your choice of fixtures and fittings.
Finally, there are a few disadvantages of buying new. First of all, defects can take a while to show up. You will have the cover, of course, but if something goes wrong, it could be a significant disruption. You will also be living in the middle of a building site if you are one of the first people to move in. And, if you buy before the building is up, any delays in construction could mean your mortgage offer expires.
Hope this has helped – so now, will you buy new or old? Let us know in the comments section!