For many, the concept of investing in property would usually involve buying a run down building and renovating it for minimal expense before selling on to make a healthy profit. However, as more and more new builds come onto the market these properties might serve as excellent investments for the budding property developer.
Here’s how an investment in a new build property can help fund your future and ensure your climb onto the development ladder is a smooth one:
Lots of opportunity
There is an abundance of new builds on the market, with developers applying for new planning permissions all the time. The NHBC reported in July this year that 41,222 new homes were registered in 2016’s Q2, which means there’s a plentiful supply and sites such as WhatHouse? should be busy listing new properties every month!
No renovation required
A new build is a blank slate, with no garish 1970s-style bathroom to rip out or musty carpets to remove, it’s ready and waiting for the new owner to enjoy straight away. This means less renovation costs for you – although perhaps you will still need to lay a lawn in the back garden – which could result in more money in your pocket. Even if you live in the property for a year before selling on you will still make money, simply because only minor repair and décor jobs will be required.
Guarantees on building and appliances
New builds come with guarantees on inbuilt appliances and the building itself – 3 years for most appliances and 10 on some fixtures of the house such as the brickwork and roof. If you are buying to let this is good news because should anything go wrong and if it is under guarantee you won’t have to foot the bill. If you are selling the property, then this is an attractive incentive for buyers who want to ensure they won’t be paying out for repairs a couple of months after settling in.
Homes that people want
New builds are generally two or three bed properties, which most families and couples are looking for which means as soon you relist it you’ll garner interest from those who missed out the first time when that development was released. This also means the value of the property should increase steadily, as the area around it populates and demand grows.
Choosing to invest in a new build is a smart move. Research the local area and find somewhere that should gain value quickly to ensure your investment pays off.