With any purchase you make, when buying a brand new home, you need to make sure you know if it’s a financially sound decision made. While you may rightfully see it as your home, what you should keep in mind is that it’s also a major financial commitment to get into as well as an investment decision which would require careful consideration.
In today’s post we’re taking a closer look at some of the essential consideration pointers associated with buying a brand new home.
Low initial maintenance costs
Anything that comes with a new building will be new itself, from the plumbing, heating, carpets, kitchen units, etc. What this means is that you won’t have to spend any money on upgrades and repairs.
Lower energy bills
A new building today would be built so that it meets current standards in energy efficiency, featuring improved insulation and double glazing, and boiler efficiency too. This increased energy efficiency could make for some good savings on your energy bills, which also means you might find yourself with additional disposable cash or savings.
While most new-build properties come standard with a 10-year National House Building Council (NHBC) warranty or other insurance-backed guarantee, unless you have highlighted the issue, it may be missed and you won’t be able to make your claim at the end of the warranty period. One of the best ways to make sure the house has been built according to good standards is with a New Home Snagging Report makes for.
The prestige associated with newly-built homes comes with higher prices, because of factors such as builder incentives and inflated prices on fixtures and fittings, which equates to bigger mortgages and interest.
Possible initial drop in value
The need to have to sell during the construction phase or close to the next phase release may arise, in which case there would be lots of houses for sale, accounting for a buyers’ market which sees them with many choices. Therefore it might not be possible to recoup the purchase price.
The timing of your move-in date
The move-in date provided by your builder is normally something to beware of as only a provisional date, which means that you have to take cognizance of your current living arrangements and what plans you’ll have to fall back on should you not be able to move in on the planned date.
Land ownership – Freehold vs. leasehold
Unlike the case 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
Finding yourself effectively living on a construction site that can be very noisy, dusty and dangerous for children amongst many other hazards 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.