If you’re looking to join the millions of homeowners in the UK and get on the property ladder as house prices fall and rents soar, you might be considering a new build property. Requiring no effort when you move in, it’s easy to see why so many people are considering new builds.
Before you take the plunge, here are some things you need to know before you buy a new property.
- Mortgages are different
Mortgages on new build properties are usually much very similar to mortgages on older properties. They shouldn’t cost you more than normal in interest rates but buyers looking to purchase a new build might find that mortgage lenders are stricter when looking at their criteria.
This is because most lenders see new builds as a riskier investment. For example, many new builds fall in price in the first few years before the value creeps up. This means you might be required to put down a bigger initial deposit to offset this.
- Your new build will last longer than an older property
As long as your new build is built to a high standard, your new build will probably last longer. Most new builds are designed with the latest technology in mind. The contemporary design and modern fitting will usually be much more robust compared to those found in older properties.
The only downside with this is that they might not be to your taste. When you renovate your home yourself, you can customise absolutely everything.
- Your home will decrease in value in the first few years
Unlike older properties that continually rise in value, new builds usually drop in value in the first few years. So, if you’re planning to move out within a few years, a new build might not be the best option. However, if you’re planning to stay, you’ll likely see the value of your home go up just as much as an older property.
- New builds are excellent for first-time buyers
New builds are a good option for first-time buyers as they can be moved into immediately. Often, couples and individuals just getting onto the property ladder won’t have the time or funds to complete extensive renovations. As new builds are modern, this means it’s one less thing to think about. New builds also tend to have lower maintenance costs.
Many new build housing developments also have attractive first-time buyer purchase schemes, making a move to a new build a wise move.
- New builds are energy-efficient
New builds need to comply with the latest building regulations. This means they’re much more energy-efficient compared to older builds. New builds come with double glazing, a shiny new boiler and better insulation as a bare minimum. This can dramatically reduce the amount of money you need to pay each month to heat your home.
Final thoughts…
New builds sometimes get a bad reputation but they’re a great option for many buyers. Whether you’re a first-time buyer or you’re looking to move to a home that’s ready to go from day one, a new build might just be what you’ve been looking for.
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