As is the case with any purchase you would be looking to make, when buying a brand new home, you need to know if it’s a financially sound decision you’re making. While you may justifiably see it as your home, what you have to keep in mind is that it’s also a major financial commitment to get into as well as an investment decision which requires careful consideration.
In this article we’re taking a look at some of the essential consideration pointers associated with buying a brand new home.
Low initial maintenance costs
Everything which comes with a new building is new itself, from the heating, plumbing, carpets, kitchen units, etc. Consequently you won’t have to spend any money on upgrades and repairs.
Lower energy bills
A new building today would be built to meet current standards in energy efficiency, featuring improved insulation and double glazing, as well as boiler efficiency. This increased energy efficiency could result in savings on your energy bills, which in-turn means you could have additional disposable cash or savings.
While most new-build properties come with a 10-year National House Building Council (NHBC) warranty or other insurance-backed guarantee, unless you highlight the issue, it will be missed and you won’t be able to make your claim when the warranty period comes to an end. A New Home Snagging Report makes for one of the best ways to make sure the house has been built according to good standards.
The prestige associated with newly-built homes comes with higher prices as a result of aspects such as builder incentives and inflated prices on fixtures and fittings, which equates to larger mortgages and interest.
Possible initial drop in value
The need may arise to have to sell during the construction phase or close to the next phase release, in which case there would be lots of houses for sale, accounting for a buyers’ market which sees them with many choices. Consequently, it might not be possible to recoup the purchase price.
The timing of your move-in date
The move-in date given by your builder is typically something to beware of as only a provisional date, which means that you have to take into account your current living arrangements and what plans you’ll have should you not be able to move in on the initially planned date.
Land ownership – Freehold vs. leasehold
Unlike with freehold land ownership, where you own the land, with leasehold land ownership you don’t own the land, but you have to rent it on an annual basis in addition to paying ground rent. More builders have been selling houses on leasehold than freehold in recent years.
Living on a construction site
Living on a construction site that can be very noisy, dusty and dangerous for children is one of the many positive or negative new-build stories shared in the Moving and Improving community, with surrounding homes making for another possibility as far as that example goes as they could be under construction for months and maybe even years after you move in.