The thought of buying an impressive new home is bound to be appealing However, just like any other purchase there are some considerations you should consider before making the plunge.
A new-build home purchase is distinct from purchasing an existing home. This guide will outline the most important factors to consider, such as asking prices, mortgages, showing homes and the process for purchasing a brand new home.
What are the benefits of buying a brand-new house?
One of the major benefits of purchasing a brand new home is that at the very least it’s less likely to need the same level of care as older homes. The cost of energy could be lower, too because new construction homes tend to be more energy efficient as compared to older homes.
If you’re purchasing off-plan (before the building has actually taken place) You may be able to pick certain elements of the design or get an offer that is lower than the price you’re asking for.
Another advantage, should there’s a need for financial assistance it’s you can avail the Help to Buy equity loan scheme, whereby the government loans you a certain percentage of the cost of your property – is only available on newly constructed homes. In addition, the government’s First Homes scheme is also only available for new constructions.
There are some drawbacks to purchasing new homes, like snagging issues after you move in, and issues the possibility of getting an mortgage. These are discussed in more depth further down.
What’s included in a brand-new property?
One of the greatest benefits of buying a new house is that in most cases all of the fixtures and fittings that you’d otherwise need to pay on are part of the purchase price.
What exactly is included will vary based on the builder and the features it’s providing. You could (although you may not necessarily) receive dishwashers or washing machines into the mix, along with flooring made of wood or carpet.
Developers often attempt to offer you more products. Be cautious as the cost of these may be exaggerated, and it could be more affordable to find them and purchase these items yourself.
The current building regulations and rules also require specifications that builders must adhere to in order to make their homes more energy efficient which will help you save money on costs.
It means that energy-efficient options like double or triple-glazed windows, walls that are insulated as well as doors and roofs as well as energy-efficient heating, are commonly found in new homes.
Are new-build prices negotiable?
The asking prices are typically placed on the signs when homes are being constructed.
Of course, developers will inform you this is the amount you’ll need to pay, but this isn’t a price to pay and you must be ready to bargain.
The probability of success is contingent on various factors like the location where the property is and the amount of demand, in addition to how close to completion the project is.
If the project is in its early stages it could be that there is an agreement to be made because the developer might require funds to carry on the project. In contrast, if the project is close to completion and the developer hasn’t found an interested buyer, you might be in a good situation here as well.
No matter what stage your development is in It is worth doing your homework, looking at the selling rates of similar properties on sites such as Rightmove, Zoopla and the Land Registry.
Consider HD Living Group when looking for a property developer Chichester.
Be sure to do not pay more than you think the property is worth, since you could be unable to sell the house at the same price further down the road and even be in negative equity, meaning that you are liable for more in mortgage debt than you are able to pay for the value for the home.
If you’re not able to get anywhere by negotiating the price you’re looking for There are other options to reduce the cost. It is possible to ask the developer to cover the tax or add additional items, like furniture or flooring, at no cost.
Is there a brand new build premium?
There is a chance that you have heard about the “new-build premium,” the term that refers to the fact that newly built homes tend to be more expensive than older, however similar homes. The reason behind this is because everything is brand new and unoccupied, energy efficient and constructed to the highest quality specification.
There is evidence that, in addition to the normal new-build price certain builders have been charging a higher “Help to Buy premium’ to buyers who use the equity loan scheme of the government.
Be sure to remain calm when looking at a brand new property. Find information about comparable properties in the same area as well as on the development and don’t make offers that are more than what you can afford.
The buying process for a brand-new building
1. Take care of your finances
Get advice from a qualified mortgage professional on how much you can take out. So you’ll know precisely what you’re able to afford before you begin to see properties that go beyond your budget.
It is advisable to get an agreement on mortgage in principle (AIP) before you begin home-buying, particularly if the first time buyer.
It’s a form from a lender who has confirmed that they will, in general terms’, provide you with an amount of money as a loan amount. You can use to show to your developer you’ll be able pay for the house.
2. Find an apartment
It’s next to identify an development that you like. If you’re hoping to receive an Help to Buy equity loan then you’ll have to verify whether the development is part of the program.
Research the neighborhood, amenities and the track record of the developer in providing high-quality homes on time.
When you’ve got a clear estimate of your budget then it’s time to begin looking at new developments. You’ll be able to tour the show house – that will precisely or close like the home you’re thinking of purchasing, even if it’s not constructed yet, or in the event that the home you’re touring hasn’t been constructed or a marketing suite.
What should you be looking for when you watch a TV show at home
A visit to a show house can be a lot of fun. Show homes are generally decorated and equipped with high-end furniture, which allows you to imagine yourself in a high-end home.
Take a step back from this, because the items you see in the model home will not be available on every property within the development, at the very least, not without paying a significant amount. Make sure the salesperson is clear about what’s included, as well as what additional features are charged.
Concentrate on the structure itself Is it built well and functional? Is the layout clear and do you think you could live there? Explore the area to envision how it could appear when it’s finished. If it’s in the initial stages, ensure that the site is well-managed and neat.
Do you know how to make the most of your home? trade
Dressing: Show homes are designed by interior designers trained to optimize the space. In this way, the house could appear bigger than it really is. Look out for mirrors, glass furniture and lighting fixtures that create a spacious appearance and give the illusion of light.
Furniture: look out for tiny or small furniture. For instance, living rooms may have tiny sofas and bedrooms might only contain the bed and table.
Some features of the show house might not be part of the standard specifications. This could include taps for boiling water or designer worktops as well as high-end lighting.
Plot: Show homes typically have the best plots in the property and you shouldn’t be caught up in things such as an enormous garden, as it might not be similar to the home you’re considering buying.
Should I purchase an open-air show house?
Developers are always able to sell their show homes when they’ve completed using it to promote their business.
The idea of purchasing the show home is controversial but at the most affordable cost (and having the proper amenities included) this could be a good idea. These are pros and cons
You are able to inspect the property prior to moving into
The construction will be nearly completed, which means you won’t be living on a construction site
Show houses usually come with upgraded fixtures and fittings, and are located on an ideal plot
It is possible to include furniture in the cost
It is possible that you are paying too much for high-end fixtures and fittings, but you’ll be unable to personalize these
A show house is likely to have endured lots of wear and wear and
Some items are taken away and are used in different homes in the development
You won’t get on-site aftercare
The show house is often located near the car park of the marketing suite. If the developer plans to build a home on the car park towards the close of the project it could cause interruption.
3. Create an offer, and then pay the amount
If you’re interested in purchasing the property and you’re confident that you’ll be able to pay the monthly mortgage payments It’s the time to submit an offer.
If you’re accepted, you’ll be required make a payment for a reservations cost. The typical range is between PS500 to PS1,000. It will usually be deducted from the cost of the purchase when you have completed.
Please note that the fee is not refundable if you choose to leave.
4. Get started on analyzing the financial and legal details
You’ll need to hire an attorney or conveyancer to take care of the legal aspect of the purchase. It can be beneficial to choose a professional with expertise in dealing with new builds and will ensure whether the developer has been granted proper planning permission, and ensure that the property is connected to the necessary services, including sewers and roads.
They’ll also agree on the time that you will receive your keys, and also manage the money to purchase the house.
In the meantime you’ll be in your mortgage application process and then wait until your lender gets an independent appraisal of the property.
5. Do not wait to be able to
If you’re buying a brand new home it is possible to exchange contracts for months before moving into. This is when you pay your deposit. where you make your depositthrough your conveyancer.
There will be a little the lingo when planning your move-in day.
The first is the’short-stop date, which is the date that the developer is expected to complete work. Then, another is the “long-stop date that is the deadline for the home to be finished by.
In principle, the “long-stop date is meant to ensure that you don’t lose the mortgage you have accepted, since (depending of the loan provider) they usually expire within six months.
This is why finding a great conveyancer becomes essential, since they will keep yourself and the lender on current throughout the entire process.
Prior to moving in, you should consider getting a snagging report done to ensure that any problems in the property are discovered and rectified as fast as is possible.