Thinking of buying a New-Build property?

Adapted from a recent Zoopla article

New-build homes are a popular option for many people across the country. From first-time buyer homes and bachelor pads, to family houses and retirement homes, there is plenty of choice for buyers.

Buying new-build vs old

There are many advantages to buying a new-build home. Here are some of Zoopla's top reasons:

1. You can get in early

Many house builders and developers offer properties off-plan, which means you can choose and reserve your dream home before it is even built. And if you buy off-plan in an area where house prices are rising, you could benefit from equity growth before you've even moved in.

2. You can build it around you

You will be able to make your own mark on a new-build home, knowing that it has been untouched by previous owners. Some house builders and developers offer buyers the opportunity to design their new home from scratch. This could range from the position of doors, cupboards and plug sockets, to the style of the wallpaper, garden landscaping and the colour of your kitchen worktop. The sooner your reserve your new home, the more choice you have. You may have to pay extra for this so study the small print carefully.

3. It's 'low-mo' - low maintenance

There is no need to carry out repairs, maintenance and redecorate when you move into a new home. In fact, any such work is likely to be unnecessary for at least the first few years.

4. You get cover

The home may well be registered with the National House Building Council (NHBC), in which case it will come with a 10-year warranty and protection scheme. Other companies that provide warranties and insurance for new-build properties include BLP.

5. It's flexible

If you are a first-time buyer and not selling, you will not be part of an onward chain, which means you will be able to proceed with the deal to buy a new home at your own pace. You can move in as soon as you like without waiting on buyers in an upward chain.

6. Bills are cheaper

Homes are typically built and fitted with the latest energy-efficient appliances, which means they are cheaper to run than many older properties. They tend to be well insulated and double or triple glazed.

7. It's secure

Top safety and security measures will also be in place due to the high building standards now required of new-build properties. These tend to include fire safety, locks on doors and windows, security lighting and alarms. You may also find entry phones in new housing developments.

Types of new-build properties for sale

You will find a wide variety of new-build properties for sale. To make the search less daunting, draw up a list of your requirements. Make sure you take into account what you need in a new-build home both now and in the future. Some of the more popular types of new-build homes are listed below.

Flats are a popular choice for buyers living in towns and cities. Many flats are found in high rise developments. And some of the most exclusive apartments and penthouses, come with the very best facilities. They can include underground parking, concierge services, private gyms and spas, reception desk, and residents-only clubs.

If the urban lifestyle appeals, then you may want to consider a smart townhouse. It means you can enjoy easy access to shopping, nightlife and entertainment in the town or city centre.

If you have or are planning to start a family, then why not consider a spacious house designed specifically to cater for family life? They often come with large gardens for children to run around in.

There are also homes designed to suit a range of retirement stages. New-build properties built for the elderly often have features such as a mobility scooter charging room, for example. Some retirement villages and retirement homes come with onsite managers and a 24-hour emergency call centre too.

Looking at show homes

Most house builders and developers will have a show home to illustrate the quality and finish of their properties but bear in mind this one will be a result of their best work! So get a tour of the site as well as the exact style of property you plan to buy (even if it is on another housing development). It will help you get a better picture of what your new home will be like in reality.

Dealing with off-plan property

It is possible to buy a home off-plan, which means that it has not yet been built. This has many advantages, not least allowing you to be involved with your new home from scratch.

However, to avoid disappointment, it is advisable to agree a long stop completion date with your house builder or developer. It means that if the property is not finished on time, you will be entitled to compensation. Delays can not only be frustrating but they can also potentially cause problems when it comes to your mortgage lender.

Mortgage offers typically last between three and six months. You should make sure that the completion date is within the duration of the mortgage offer. Otherwise, you may find that the offer becomes invalid. Some mortgage lenders may provide an extension to the offer.

Support and incentives available on new-build properties

There are many schemes in place to help buyers secure a new-build home.

The Government’s Help to Buy scheme helps first-time buyers and homeowners in England to buy a new home or an older property. There are similar schemes in place in Northern Ireland, Scotland and Wales.

The equity loan element of Help to Buy is applicable to new-build properties only. You will need to secure a minimum 5% deposit while the Government will provide a loan of up to 20% of the value of the property (up to 40% in London).

The Help to Buy ISA gives a £50 bonus for every £200 saved to buy a new-build or existing home, with a maximum bonus of £3,000 available on savings of up to £12,000.

The Lifetime ISA is similar in that it offers a 25% tax-free bonus of up to £1,000 a year towards buying your first home or saving towards retirement. It can be opened by savers aged under 40.

Alternatively, shared ownership allows qualifying buyers to purchase a stake of between 25 and 75% of a new-build home from a local housing association. You then pay an affordable rent on the proportion of the property you don’t own.

You will find that house builders and developers also offer their own incentives to help sell their new housing developments. They vary from company to company and can include:

·Paid Stamp Duty Land Tax

·Paid deposit

·Free fixtures and fittings, white goods, interior design advice or landscaping

·Cashback

·Part-exchange deals, where the house builder or developer purchases your existing home from you and sells it on

·Assisted sale, where the house builder or developer helps to sell your existing property. They will typically arrange for an independent valuation and then market your home through their sales department and an estate agent.

Top tip! Keep a close eye out for the end of your house builder or developer’s financial year. It may be a good opportunity to negotiate a lower sales price or secure good incentives if the firm needs to hit targets.

Remember as an Independent Mortgage Broker, we are regulated to offer you the best advice.

For expert advice and more information or to book your FREE consultation please visit one of our websites, call or email.

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