Getting value for money is vital when purchasing a home, whether you’re a first-time buyer or moving up the property ladder. New build homes are a popular choice due to their energy efficiency and low maintenance.
With mortgage rates climbing significantly and new builds typically fetching a higher price, it’s vital that you get your property for the best price and value possible. Here we’ll discuss what you should look for when buying a new build home, including ways you can reduce the price and increase its value in the long run.
Try and conduct some research and look at other properties in the area to see what the common value and space are. This could be with both older properties and new builds if the information is available.
Check the price per square foot of the property and compare it with the resale market. That way you’ll be able to figure out the extent of the premium that you’ll be paying.
Look around for deals
Developers will often offer incentives to attract buyers as a way of differentiating themselves from other local developers. Look out for things like free parking spaces, free furnishings, upgraded kitchens, etc.
Try to negotiate on the price, using any research you’ve done on cheaper properties in the area. You can do this using online sites such as Land Registry and Rightmove. The majority of deals usually take place at the end of the financial year or when there are only a few properties left on the development.
If you can’t reduce the price, get them to cover your stamp duty as this will likely save you the most money. Do note that any incentives above 5% can impact the amount your mortgage provider will lend to you.
Potential to add value
When buying any property, it’s best to see if there’s scope to add value further down the line. This is particularly important with new builds if you plan to sell the house in the future, as they can depreciate in value once you move in.
Consider if there’s the opportunity to add a loft conversion, conservatory, or even a landscape garden. You may not be in a place to afford that right now but it could be an option in the long term to attract buyers.
Consider the future
Future-proof your purchase by considering whether it’ll fit into your long-term plans. Do you expect to stay there for a while? Will your partner move in? Are you planning on having children? You’ll want to be living comfortably for at least a few years if you want to get your investment back or make any money from the property.
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