The Pros And Cons Of Buying A Newly Built Property

Many people believe new builds are a safer bet than older homes.

While older properties have period features and a certain charm, they often need a lot of love and care. On the other hand, new build home are crisp, clean and newly decorated and it is unlikely that you’ll need to spend much time or money doing them up.

However, even new builds come with some drawbacks!

If you are considering buying a newly built home, consider the pros and cons before you buy…

The pros of buying a new build

• No chain – as you are the first owner of the property, there will not be a chain of buyers above you. This can help make the buying process less stressful because you will be able to complete as soon as your finances are in order.

• Low maintenance – your house will be fitted with a brand new boiler, bathroom and kitchen, so you will not have to worry about replacing them anytime soon. New houses are also much less likely to have the problems that affect older properties, such as damp, mould and subsidence.

• Warranties – most builders will offer a warranty to cover most of the construction work, so even if something does go wrong, you should be covered. All new build properties come with a 10-year warranty from the National House Building Council.

• Unpack and settle in – you will be able to move straight in without having to decorate or renovate first.

• Have a say in the final finish – if you buy a house before the work is completed, many builders allow you to have a say in how the interior will look, for instance, your choice of flooring or tile colour.

• Low bills – new build homes are built to the latest specifications and building standards and so are more energy-efficient than older properties. This means energy bills on these properties could be significantly lower.

• Government incentives – the government has created Help to Buy schemes which give home buyers a helping hand onto the property ladder. These schemes are exclusively available on newly built properties.

• Homebuilder offers – some developers will throw in extras to secure a sale such as covering the cost of stamp duty or paying for new carpets.

The cons of buying a new build

• Premium price – Developers price new build properties at a premium, you will pay for the fact that everything is brand new. This means that new builds can lose their value more quickly than old houses, so when you come to sell, you may find that your house has depreciated in value.

• Harder to get a mortgage – because new builds are prone to depreciation mortgage lenders often insist on a higher loan-to-value for new build properties. This means you will need a larger deposit than you would to buy a similarly priced older home.

• Delays – If you have bought the house before it is completed, there is a chance it may not be completed on time for you to move in. You may incur unexpected costs for rent and storage whilst you wait for your new home to be finished. Long delays may mean that your mortgage offer expires.

• Less space – Often developers want to maximise the number of homes they can build on a site, so new build properties often have smaller rooms and gardens than older properties.

• Snagging – even with the best new build properties, you should expect some snagging issues. You will need to make a snagging list and work with the builder to resolve the problems.

• You may need to live on a building site – if the development is not complete, you will need to be prepared to live with the disruption of building noise, road closures and mud until the build is finished.

• Leasehold – If you are buying a new build flat it is normal for this to be sold as leasehold. Newly build houses should be sold as freehold; however, some unscrupulous developers are selling new build houses with a leasehold, so make sure you check.

If you want a modern home you can move into without any redecoration or refurbishment, then a new build may be for you. However, if you want more space for your money then consider an older pre-owned property.

Whatever type of property you decide to buy, the property experts at Kubie Gold can help. We have a large portfolio of both new and old central London properties and can help you find the right home.