For many first time buyers, it can be quite over-whelming when choosing a home since this would be a major investment. Many buyers have secured housing and found hidden problems adding to extra costs such as defects in older properties through wear and tear or mold, blocked drains and high energy costs.
One suggestion is to look at ‘new builds’, by definition, this is a property (houses or flats) which has never been occupied or sold and can still be in development stages.
Advantages
Energy Savings: New builds are required to comply with energy saving requirement, heating systems and insulation are made to be more energy efficient resulting in fuel savings. Developers are also more compliant to include environmental friendly features such as dual flush toilet cistern installed to minimize water use.
Pros: Savings on fuel consumption, attempt to be more environmental friendly.
Building Insurance: A 10 year building warranty from the likes of the ‘National House Building Council’ (NHBC) is normally included by developers. This covers repair work on property defects.
Pros: Peace of mind if there are any structural issues involving repair costs.
Designed for instant living and developers offers: Installed kitchen units, fitted wardrobes, fixed floor covering and painted walls are included in many new builds. In addition, furniture packs /white goods can be added as an extra incentive. Some developers wanting to complete selling the last of units may also cover stamp duty and legal fees.
Pros: Move in instantly, save huge amount on legal or stamp duty.
Home Security: Fire resistant materials, smoke alarms, electrical wirings are most likely to be part of the design of the new built, as with security locks and alarms to guard against theft.
Pros: Sense of security resulting in the reduction of insurance premiums
Easier Buying Process: No chain involved through the seller’s side. Should you be selling your current property developers may offer part exchange deals such as selling your property for you.
Pros: Less time consuming process compared with a second hand property deal where chains are involved.
Disadvantages:
Premium Price: New build property can be pricier in comparison with an older property with similar housing features, size and location. The higher pricing are to cover developer’s costs in securing the site, land works and other legal administration.
Cons: De-valued once it has been lived in. As the properties become old it would be hard to complete with other similar properties in the area.
Settling: Since it’s a new build, new address or postal code may be assigned but not yet updated in official data base. This has led to difficulties in receiving deliveries. Expect to also encounter delays with installing broadband/Wi-Fi, landline connections or utilities.
Cons: Teething issues with postal and setting up connections.
Defects: It has been reported by ‘Which” that 87% of buyers of new built housing has found defects, such as window leakage, doors catching on carpets etc.
Cons: Most defects can be repaired under warranty, but it does put a damper on the purchase, thus always get a snagging report.
There are many pros and cons with purchasing a new build. Ask yourself what is the most
important criteria and if this can be achieved with a new build property.