The signature scent of a new build home is a heady mixture of fresh paint, aromatic wood and new carpet: and it’s surely one of the reasons why we find new properties so attractive.
A newly-built home is move-in ready, without the telltale signs of previous occupancy you might find in an existing property. But are there other, more compelling, reasons to invest in a new build home?
Here we examine the benefits of buying a new build and other considerations when purchasing directly from a developer. What are the pros and cons of buying a new build?
The Pros Include:
No chain: as the first ever owner of your property, you’ll avoid the stress caused when your property purchase gets bogged down in a slow-moving chain of buyers.
Convenience and energy efficiency: High specification new builds incorporate the latest technology, with ‘smart’ features that make life easier and more convenient. You should also benefit from lower energy bills: over 80 per cent of new build homes have an EPC rating of A or B.
Add your own stamp: when you buy off-plan, you may be able to decide on certain aspects of the build. This could give you a choice when it comes to fixtures, fittings and finishes. You could even be invited to adapt the layout to suit your lifestyle.
Tempting incentives: in order to encourage buyers, some developers will add in extras, such as the cost of new carpets or paying the Stamp Duty on the sale.
An advantage for first-time buyers: for many people, a new build property offers hope of getting on the property ladder through schemes such as Help-to-Buy and Shared Ownership (both are only available if you purchase a new build).
Warranty assurance: all new build property comes with a warranty, so you can expect that any initial problems will be dealt with at no cost to you.
The Cons Include:
Lack of space: certain developments are constructed in a way that allows the maximum number of properties to be built on a limited footprint. Always look for reputable developers who won’t cut corners when it comes to room size or storage.
Service and maintenance charges: make sure you are clear about the costs of all ongoing charges – for repair, service, maintenance and block management - before you sign the contract. If you are buying an investment property to rent out, bear these costs in mind when you calculate the potential rental income.
Snagging: even the highest quality new builds will have snagging issues. Even if it’s something relatively small, like a squeaky door or a faulty tile in the bathroom, you’ll want to get it fixed before you move in. Arrange for a snagging survey carried out by a professional as early as possible.
Are New Builds a Good Investment?
You can expect to pay more for a new property. Usually, a new build premium is included in the price of your new home. However, premiums on new build properties in London (costing anything from 0 – 16 per cent) are often lower than premiums in other parts of the country.
A new build property may be one of the few options available when you are trying to buy a home in a sought-after part of London. In areas where properties are in high demand, it’s highly likely that your purchase will turn out to be a good investment. This is particularly true of popular areas such as Marylebone, where older properties rarely become available, and new hotspots like West End Gate and Chelsea Creek.
In places where there is less demand, the value of your investment may depend on the length of time you intend to hold on to your property. If you are planning to sell it within a couple of years, it’s unlikely that you will reap a substantial profit on the sale. However, if you are prepared to wait for five, six years or even longer, you should be able to benefit from your investment.
If you are looking for new properties in a luxury development, Prime Central London is a great place to start your search. World-class cultural facilities, exclusive stores and an array of open green spaces make London a highly desirable place to live and work.
At BHHS London, we work closely with some of the best luxury developers in the capital. Why not browse our new build properties for sale below and book a viewing?