Buying a new build property has its own advantages and disadvantages when compared to an old one, and starting afresh in a new house is a great feeling. This guide will help you decide whether you should buy a newly-constructed home or go for a previously owned one up for sale in the market.
New-build home advantages
If you already own a home, the builder may offer you a part exchange.
You would not be required to carry out major repairs and renovations at least for the first 5 to 7 years.
If the property you want to buy is registered with a company that provides warranties and insurance for new homes, it will come with 10-year warranty and protection scheme.
The deposit or down payment for a new build home is usually less than the deposit required for a previously owned house.
If the construction of the house has not yet completed, you can get some features changed according to your requirements. However, you will be required to pay extra for this. Furthermore, you can demand any such variations only after contracts are exchanged.
Getting a mortgage for a new build house is also easier than getting one for an old one. Generally, home builders arrange mortgage facilities for the whole area soon after they begin the project. Moreover, usually a particular building society and the property developer are linked together, which makes it easy for home buyers to get favourable loans.
New-build home disadvantages
The house might not be finished for some time now, and if you have already sold out your old home, you may have to live on rent.
Another disadvantage of an unfinished house is that your mortgage lender might not release the final loan until all the construction is complete and the house is ready for possession.
Be prepared to face some teething troubles, such as cracks in the walls produced by dried out plaster.
Usually the infrastructure, mostly roads, in newly built societies is not completed. This may cause problems with a building society loan.
The front lawn might have to be laid from scratch.
You would not be able to get your money back if you plan to sell the house in the first two or three years of its construction.
Usually the home builders ask the buyers to pay for the new home by stage payments, which can overburden you.