All information has been sourced from various online publications e.g., government, regulator and building publications and are subject to change. We keep updated on all property laws and regulations, so we stay one step ahead of the competition. This is to give you some information regarding properties investments, purchasing, or renting we handle all the headache so you can enjoy your property or portfolio knowing we have you best interest at the very heart of all that we do. Solid Properties Management is here to help guid you through this complexity and put your mind at ease. We work with an array of builders and contractors so rest assured we can answer any questions and get answers also make right what is wrong and stopping bad practices from even being an issue depending on the type of purchase or investment. We work for you, with you and always with your best interest.
Solid Properties Management Limited is you go to source for all your property needs. Arrange a 30 consultation session
The Pros and Cons of Buying a New Build Home When it comes to purchasing a home, buying a new build property offers numerous advantages and considerations. In this blog post, we will explore the pros and cons of buying a new build home, providing you with valuable insights to make an informed decision. From high-quality construction to customization options, energy efficiency, warranty coverage, and more, we will delve into every aspect. So, whether you’re a first-time buyer or considering upgrading your living space, this guide will help you understand the advantages and disadvantages of buying a new build.
Pros of Buying a New Build
High-Quality Construction New build homes are constructed using the latest building codes and regulations, ensuring high-quality construction and structural integrity. Builders employ modern construction techniques, advanced materials, and technology to create homes that are built to last. From the foundation to the roof, new build homes undergo rigorous inspections and quality control measures, providing homeowners with peace of mind and a solid foundation for comfortable living.
Customization and Modern Design One of the key advantages of buying a new build home is the opportunity for customization. Builders often offer a range of options and upgrades to personalize your home, allowing you to choose from various floor plans, finishes, fixtures, paint colors, and flooring materials. This flexibility empowers you to create a space that reflects your unique style and preferences. Additionally, new build homes often feature modern designs and layouts that are tailored to contemporary living standards, offering open-concept spaces, functional layouts, and ample storage options.
Energy Efficiency and Lower Utility Bills New build homes prioritize energy efficiency, which can lead to significant savings on utility bills. Builders incorporate eco-friendly features and technologies, such as enhanced insulation, energy-efficient appliances, double-glazed windows, and advanced HVAC systems. These elements help to minimize energy consumption and reduce environmental impact. As a result, new build homeowners can enjoy lower utility bills and contribute to a greener, more sustainable future.
Warranty Coverage and Peace of Mind When you purchase a new build home, builders typically offer warranty coverage for a specified period. This warranty provides protection against potential defects or issues that may arise during the initial years of homeownership. Structural warranties, for example, cover major structural components of the home, giving homeowners peace of mind knowing that any necessary repairs or replacements will be handled by the builder. This coverage saves homeowners from unexpected expenses and offers a safety net during the early stages of homeownership.
Reduced Maintenance and Repair Costs New build homes are equipped with modern materials, fixtures, and systems, which can result in lower maintenance and repair costs compared to older homes. With new plumbing, electrical systems, and appliances, the likelihood of immediate repairs is minimized. Additionally, new build homes are designed with durability and longevity in mind, reducing the need for frequent repairs or replacements. This translates into savings and allows homeowners to focus on enjoying their new home rather than dealing with ongoing maintenance issues.
Inclusion of Modern Fittings New build homes often come with a range of modern fittings that enhance the overall living experience. These amenities may include contemporary kitchens with state-of-the-art appliances, smart home technology for added convenience and control, energy-efficient lighting and fixtures, ample storage space, and well-designed outdoor living areas. By integrating these modern amenities, builders aim to provide homeowners with a comfortable, convenient, and enjoyable living environment.
Cons of Buying a New Build
Higher Initial Cost Compared to older homes, new build properties generally come with a higher price tag. The cost of land, construction materials, labor expenses, and modern features contribute to the increased price. If you have budget constraints, it’s important to carefully evaluate and ensure the affordability of a new build home within your financial means. Consider working with a financial advisor or mortgage broker to assess your options and determine the best approach for your situation.
Potential Construction Defects Although new build homes undergo inspections, there is still a possibility of encountering construction defects or issues. These defects can range from minor cosmetic imperfections to more significant structural problems. It is essential to conduct a thorough inspection and address any identified issues with the builder before the warranty period expires. Engaging a professional home inspector who specializes in new build homes can help identify any potential issues and provide you with the necessary documentation to request repairs or corrections from the builder.
Considerations and Tips for Buying a New Build
Research the Builder and Their Reputation Before committing to a new build home, thoroughly research the builder and their reputation. Read reviews, visit their previous developments, and assess their commitment to quality and customer satisfaction. A reputable builder with a track record of excellence ensures a higher likelihood of a smooth home-buying experience and a well-constructed home.
Review the Contract and Warranty in Detail Carefully review the purchase contract and warranty provided by the builder. Pay close attention to the terms, coverage, limitations, and any additional provisions. Seek legal advice if needed to ensure you fully understand your rights and obligations as a homeowner. Understanding the contractual terms and warranty coverage will help you avoid potential misunderstandings and ensure a transparent and fair agreement.
We are the professional that will help you through this. We lay Solid Foundation to ensure Solid Investments We are Solid Properties Management limited
Assess the Location and Future Development Plans Evaluate the location of the new build development and consider its suitability for your lifestyle and future plans. Research the surrounding area, nearby amenities, transportation options, and potential future development plans. Understanding the long-term prospects of the location will help you make an informed decision about your investment. Consider factors such as proximity to schools, healthcare facilities, shopping centers, and recreational areas that are important to you and your family.
Get a Thorough Inspection Even though new build homes undergo inspections, it is crucial to hire a professional home inspector for an independent assessment. A thorough inspection will identify any construction defects or issues that need to be addressed by the builder before closing the deal. This step ensures that you are aware of the home’s condition and can address any concerns proactively, protecting your investment and avoiding potential headaches in the future.
Explore Financing Options When buying a new build home, explore financing options and consider getting pre-approved for a mortgage. Understand the costs involved, including down payments, closing costs, and other fees. Comparing multiple lenders and understanding your financial obligations will help you make a well-informed financial decision. Work with a mortgage broker or financial advisor to assess your options and determine the most suitable financing approach based on your financial situation and goals.
Conclusion Buying a new build home offers numerous advantages such as high-quality construction, customization options, energy efficiency, warranty coverage, reduced maintenance costs, and modern amenities. However, it’s important to consider potential limitations such as limited negotiation opportunities, possible delays, the lack of established amenities, higher initial costs, potential construction defects, and limited individuality. By conducting thorough research, reviewing contracts, assessing the location, seeking professional inspections, and exploring financing options, you can navigate the process of buying a new build home with confidence and make a decision that aligns with your preferences and goals. Remember to weigh the pros and cons, evaluate your personal needs and circumstances, and consult with professionals as needed to ensure a successful and satisfying home-buying experience. We are the professional that will help you through this. We lay Solid Foundation to ensure Solid Investments
We are the professional that will help you through this. We lay Solid Foundation to ensure Solid Investments We are Solid Properties Management limited
Budgeting for your Buy-To-Let Most buy-to-let mortgage products will require a minimum deposit of 25%. However, as with any property purchase, it’s essential to take the initial outlay into account and not overspend. Mortgage fees, legal fees, furnishing costs, and bills while the property is vacant should all be taken into account when establishing your budget. It would be wise to set aside at least 6 months’ worth of running expenses, should you need to renovate or advertise your vacant property for unexpectedly long periods of time. With that amount deducted from your savings; consider the remainder available to make your purchase.
Consider different types of property Now that you’ve established how much you can spend, consider the type of property you might be interested in owning and what your budget can afford you. Each type of property has their own advantages and disadvantages:
An HMO? They can be lucrative but consider the varying utility and licensing costs along with high turnover of tenants. A flat? They can be cheap to purchase, but consider service charges and dangerous leasehold traps. A family home? They can be cheap to run and safe investments, but often have low yield potential.
From another perspective, think about the type of tenant you want to attract, and choose a property that will appeal to them. For example, if you want to attract families, a property with a back garden and a nearby park may be more attractive than a small flat in the city centre. Students? Room lets or studio apartments suit best.
Research the best Buy-To-Let location. It’s important to choose a location that will attract tenants. Some cities in the UK are renowned for their universities, whereas others are home to large-scale industry or national headquarters. Places with a large quantity of international workers will always have high rental demand, since they’ll struggle to buy within their first two years of living in the UK. The same can be said for students, who will almost always need rented accommodation. This is why cities with universities and hospitals have historically been a top buy-to-let choice. Looking more locally, research crime rates in the local area and look out for anything that would put you off living in the area yourself. Type the street name or area, followed by the city into Google and see what comes up.
Consider competition and saturation When researching the ideal location, it’s important to consider how many similar properties you’ll be competing against. A large number of available properties in one area can be a sign the local market isn’t doing too well. On the other hand – a large number of successfully rented properties can indicate that the demand is there to meet the supply. Ensure your investment is Future-proof & Repurposable. Eventually, many areas do become oversaturated with investment properties as more and more landlords try to profit from local demand. It’s important to have a ‘Plan B’ if this does happen.
Buy a rental property that could easily be sold, not only to another landlord, but to a family. Try to avoid areas that will only cater to a certain demographic. If one market collapses and you choose to sell, a lack of demand from other landlords could tank your investment return. Where there’s dwindling demand for room lets, your HMO may struggle. Keep your options open, with a HMO that could double as a family let. It may not always be the best choice to convert all living accommodation to bedrooms with en-suite bathrooms for this very reason.
We are the professional that will help you through this. We lay Solid Foundation to ensure Solid Investments We are Solid Properties Management limited
Consider running expenses for your Buy-To-Let It’s essential to factor in the ongoing costs of running a buy-to-let property and not just the initial expense. What starts as an attractive 10% yield can be cut in half once utilities, council tax, leasehold and licensing costs are paid for. An investment property that doesn’t pay for itself is not a good investment. Utilities. When it comes to utilities, every property has an EPC rating that will provide a rough idea of the associated energy costs. For landlords looking to include utility bills, don’t underestimate how costly it can be to heat an energy-inefficient home. High energy bills can significantly eat into your profits and reduce ROI. Council Tax. Similarly, HMO landlords including council tax for their properties can be hit with surprisingly high bills if they’ve not taken into account a higher banding. Even those that don’t include council tax can be hit with an unwelcome bill during any void periods.
Leasehold costs Purchasing a leasehold property may be the cheaper option initially, but service charges and ground rents can add up, being an average of £150 a month across the UK. Licensing costs. Specifically for landlords looking to get into HMOs, buying a property with the intention of licensing it can be a costly affair. Not only would you have to take into account application fees, but significant works may be required to qualify your property for an HMO licence. If you’re thinking of buying an unlicensed property, take an expert to have a look and quote for any works required before you place an offer.
Building relationships
Building a relationship with a local Estate Agent, especially if you’re not local yourself, can be very beneficial. Whether it’s getting first refusal on a lucrative new buy-to-let property or just providing good, honest advice; having a local expert to call upon can save you a lot of time and money. Don’t be discouraged from calling a local agent and asking them for advice. They’d be more than happy to help if they think they’re getting business at the end of it! Landlords with larger portfolios will often find themselves in need of new furniture and appliances. Regularly ordering from the same local business is an opportunity to build a relationship with the local supplier for reduced rates. Repeat business gives you the opportunity to haggle, which can save you vast amounts of money over time.
Don’t overpay If a property has sat stagnant on the market for a while, there’s a reason for that. You won’t be the only landlord who has looked at that Rightmove listing, and you won’t be the last. The reason it hasn’t sold is that it’s overpriced. Finding the right buy-to-let property comes from being proactive, being the first in to view the property, doing your figures and making an offer quickly if the figures stack up. That said, you may well see potential where others do not, so trust your figures once you’ve calculated the rental income, running costs and expected return.
Appoint a managing agent Depending on the type of buy-to-let property you choose, the property will need varying levels of attention from you, or an agent if you choose to hand over the reins. It’s easy to overlook the costs of managing a property yourself, but it’s important to calculate the cost of your travel time to and from your property. Tenants locked themselves out? That’s time and fuel that you need to account for. If the property will be managed by an agent, keep in mind their setup fees and monthly management fee when looking at your final figures and calculating your investment yield.
How to Spot Misleading Property Listings When searching for a property, it’s essential to stay ahead of the game and be able to spot misleading listings. Misleading listings can waste your time, cause frustration, and even lead to financial loss. It’s crucial to take the time to research properties thoroughly before making any decisions. Misleading listings can be deliberate or unintentional, but either way, it is your responsibility as a buyer or renter to be aware of them.
Know what you want
Before beginning your search, it’s important to understand your needs and requirements. This will enable you to filter out irrelevant listings and focus on properties that meet your criteria. Consider factors such as location, price, property type, number of bedrooms, outdoor space, and other amenities. Make a list of your essential requirements and prioritize them so you can quickly identify properties that meet your needs. Having your priorities straight will save you time when it comes to filtering out properties that you may otherwise waste your time viewing.
Do your research When searching for a property, it’s important to gather information from multiple sources. This can include estate agents, property websites, social media, and even local newspapers. Look for consistent information across different sources and be wary of discrepancies.
Check whether the property is listed by multiple agents or across multiple websites and if so, ensure all details are uniform throughout. Tools like Google Maps are invaluable in helping you identify things left out of property listings. Is the house situated next to a council estate or a commercial unit? Is the property on a pedestrian access that wasn’t mentioned in the description or shown in the photographs?
Look out for red flags
Misleading property listings can often contain red flags that indicate something is not quite right. Look out for listings with vague or overly enthusiastic descriptions, photos with watermarks from other websites, or properties that are priced significantly below market value. Is there information missing that you’d expect to see on a normal listing? Check whether photographs are missing or whether a floor plan has been excluded. These are tactics an estate agent might employ to encourage you to view a property that you may otherwise not have been interested in. Remember, if the listing seems too good to be true, it probably is.
We are the professionals that will help you through this. We lay Solid Foundation to ensure Solid Investments We are Solid Properties Management limited
Images can be a powerful tool for attracting potential buyers or renters, but they can also be misleading. Make sure that the images accurately represent the property and that they are up-to-date. Is a property advertised as having tenants in situ but the photographs are of a vacant property? This would suggest the photographs were taken quite some time ago and may not represent the current condition of the property. Look out for properties that have been photographed in a way that makes them appear larger than they are, or that have images of rooms or features missing entirely.
Check the floor plan Floor plans are a useful tool for understanding the layout and size of a property. Make sure that the floor plan matches the description and images provided in the listing. Check that all the rooms and features are accurately represented and that there are no discrepancies. If there isn’t any floorplan, consider asking for one prior to viewing. Has the estate agent been lazy and not created one, or is there something they’re trying to hide? The floorplan is a valuable piece of media to gauge the size and layout of a property.
Verify the location Verifying the location of a property is essential to ensure that it meets your needs. Check that the address provided in the listing is accurate and that the property is located in the area you’re interested in. A property may be advertised as being in the area you’re looking for, but on further inspection, actually situated in a neighbouring, less desirable area. Use online tools to research the surroundings, including nearby amenities, transport links, and crime rates. Google maps is your friend when it comes to researching the immediate area around a property.
Check the price The price of a property is an essential consideration when making a purchase or rental decision. If the property is priced significantly below market value, this could be a sign of a misleading listing. A property listed significantly below market value will most likely have something very wrong with it or requires a lot of work. Research the local property market to get an idea of typical prices for properties in the area.
Ask questions If you have any doubts or concerns about a property listing, ask questions. Reach out to the seller or estate agent and ask for clarification. Ask specific questions about the property’s features, condition, and history. If the seller or agent is reluctant to provide answers or seems evasive, this could be a red flag.
Conclusion Stay informed and vigilant to avoid being misled and to save valuable time. Take the time to research properties thoroughly and use multiple reference points and sources.
We are the professional that will help you through this. We lay Solid Foundation to ensure Solid Investments We are Solid Properties Management limited
