What You Need to Consider Before Investing in a New Build Home
Posted by The Landsite on 29th May 2023 -
Despite the government's 2017 announcement of a significant increase in new home construction, the current reality falls far short of that ambitious target. However, there are completed new home developments available for sale across the country.
In this article, we have listed key factors new home buyers should take into consideration before making an investment:
1. Location: Research the location of the new build development thoroughly. Consider proximity to essential amenities such as schools, hospitals, transportation options, shopping centres, and recreational facilities. Also, evaluate the neighbourhood’s reputation and future development plans.
2. Builder's Reputation: Investigate the reputation and track record of the builder or developer. Look for reviews, testimonials, and feedback from previous buyers. Check if they have a history of completing projects on time and delivering quality construction.
3. Quality of Construction: Examine the quality of construction materials, finishes, and fixtures used in the new build. Inspect sample units or completed projects to assess the overall workmanship and attention to detail. It is worthwhile instructing a chartered surveyor to evaluate the construction quality thoroughly.
4. Floor Plan and Design: Evaluate the floor plan and design of the new build home. Ensure that it meets your lifestyle requirements and preferences. Consider the layout, room sizes, storage options, natural light, and overall functionality of the space.
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5. Energy Efficiency: Inquire about the energy efficiency features incorporated into the new build. Look for features such as the standard EPC rating certification, energy-efficient appliances, proper insulation, double-glazed windows, solar panels, and other green technologies. An energy-efficient home can save you money on utility bills in the long run.
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6. Home Warranty: Enquire about the builder's warranty policy. Understand what is covered under the warranty and for how long. A comprehensive warranty will provide you with peace of mind and protection against defects or issues that may arise after moving into the new home.
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7. Financing Options: Explore the financing options available for purchasing the new build. Consider interest rates, down payment requirements, and mortgage terms offered by various lenders. It's advisable to get pre-approved for a mortgage before starting the buying process.
8. Future Development: Research any planned developments in the surrounding area. This includes both residential and commercial projects. Upcoming developments could potentially impact property values and the desirability of the location.
9. Homeowners Association (HOA): Determine if the new build is part of a homeowner’s association. Understand the HOA rules, regulations, fees, and restrictions. Review the HOA bylaws to ensure they align with your lifestyle and preferences.
10. Budget and Affordability: Evaluate your budget and determine the affordability of the new build home. Consider the purchase price, ongoing costs (including mortgage payments, property taxes, insurance, and maintenance fees), and potential for future appreciation.
11. Completion Timeline: Enquire about the estimated completion timeline for the new build. Understand any potential delays or contingencies that may affect the completion date. Make sure you have a clear understanding of when you can expect to move into your new home.
12. Professional Advice: Consider seeking professional advice from a real estate agent, lawyer, or financial advisor who specialises in new build properties. They can provide valuable insights and guidance throughout the buying process.
Remember, investing in a new build home is a significant decision, so take your time, conduct thorough research, and consider all the factors that are important to you before making your final investment decision.
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