Building Secure Foundations For Any New Build Investment

With their ready-built communities and picture-perfect finishes, moving into a new build can at least seem like a wise option for any homeowner. After all, a brand new home should be as simple as they get. Shouldn’t it?

Unfortunately, for many homeowners, the dream of a brand-new home falls surprisingly short of its promise. Worse, a home purchase like this can be incredibly expensive for a few reasons if homeowners aren’t wary.

Given that buying and moving into a home is already one of the most stressful things you can do, these are setbacks that you won’t want to face. Luckily, new builds don’t automatically make bad investments. In this article, we’re going to look at the issue from every angle and consider how you can ensure that even a once-risky new build investment is as secure and stress-free as possible.

How have new builds changed over time?

Given that every house was once a new build, it can seem strange to say that new builds are inherently risky. After all, with that logic, isn’t every home just as much of a risk?

Yes and no. Unfortunately, a few key factors about modern new builds make them generally higher risk than home construction from the past. Certainly, the last 100 years have seen significant shifts in how mass home construction operates. In some ways, introducing stricter building regulations and standards has been good and has certainly made new builds more consistently safe and reliable. But, there is a flip side, which includes mass construction sites on a level that wasn’t seen 100 years ago and general cost-cutting on materials for prime returns.

These changes have brought pros and cons along with them, and it’s only by considering each of these and understanding what they mean for a new build purchase that homeowners can make wise purchase decisions.

The pros of buying a new build

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There are undeniable pros to buying new builds, and they’ve seen many homeowners flocking to purchase new constructions, even if those houses are still in the planning stages. Just a few of the major new build buying benefits that homeowners can enjoy right now include –

Chain-free purchases
Brand new appliances/plumbing/electricity
Warranty covers on the majority of building work
Collaborative building processes
The chance to invest in government initiatives
Potential cost savings on things like new carpets/decoration, etc.
Low bills thanks to things like eco-initiatives

The cons of buying a new build

Unfortunately, there are also cons to buying a new build, and homeowners need to be aware of these before they commit to a sizable investment that isn’t for them. The most pressing cons, some of which can turn potential buyers off altogether, include –

Potential issues in an untested property
Investment losses as high as 7%
Difficulties securing a mortgage
Potential issues with leaseholds
Possibility of construction delays and setbacks
Smaller rooms
Houses built with cheaper materials

The wisest ways to buy a new build

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With both pros and cons possible with a new build investment, there’s certainly a lot to be said for taking a chance if a new build appeals to you. That said, doing what you can to avoid the potential pitfalls of this purchase is going to make a huge difference to how easily you’re able to adjust in general. It could also save you from a lot of stressful and potentially costly issues.

So, a few things to do before you put an offer in on a tempting new build include –

# 1 – Settle any potential issues in advance

As mentioned, having your say in the building process of a new build is a significant plus point, and many construction companies will offer additional extras or appliances that wouldn’t be possible with an existing property. That said, the fact that everything’s brand new and untested also leaves new-build properties open to issues, including leaks, potential appliance malfunctions, and even incorrectly fitted doors and windows.

All of this can prove incredibly stressful once you’re in and may even leave your home insurance null and void. Luckily, making the most of having your say during building can help to avoid this. By doing thorough checks in advance, you can ensure that you’re aware of these issues before you sign off on any building work. This should mean that either the construction company will have to fix the issue before you move, or you can insist on money off for any materials you have to buy yourself, like additional installation, plastic guttering for diy jobs, and so on. That way, you’re never left out of pocket, or caught by surprise, when new build building issues take their toll.

# 2- Simplify your mortgage

Mortgage lenders can be wary of new builds, and homeowners looking to purchase a property like this will need to seek a new build-specific mortgage, that will have a longer validity period than a typical six-month offer. When you do this, a few things to bear in mind include –

Stricter lending rates
The need for higher deposits
The need for reservation fees
Etc.

Developers who work to limited timeframes and needn’t worry about chains, etc., may also leave you with as little as 28 days to exchange once you’ve paid a deposit. Getting an already complicated new-build mortgage approved in this period can be difficult. To simplify this entire process, it’s therefore important to take steps, including saving at least a 15% deposit and securing a mortgage decision in principle so that you fully understand your lending capabilities and options before you even begin getting your mortgage for real.

# 3 – Consider your long-term intentions

New builds lose value fast for various reasons, including the risk of potential issues and the possibility that newer and better buildings will be constructed across the road in just a few short years. Plus, with developers installing everything brand new, new build prices are typically at a premium because of things like top-range appliances that won’t necessarily reflect on house prices a few years down the line.

For homeowners looking to move in a couple of years, this means that new builds are rarely the wisest choice. By comparison, somebody intending to invest in a new build in the long term will be better able to avoid inevitable short-term price dips and should, instead, see decent enough returns when they do sell down the line.

# 4 – Be realistic about size

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Due to limited plots and size restrictions by developers looking to make the most properties for their money, there’s an emerging trend of smaller floor plans in new builds than in traditional properties. As such, a homeowner looking to move from a four-bed older house into a four-bed new build may still find that they struggle to fit their same belongings. Equally, they’re at risk of ending up with a lot less space for either the same, or more money, than their previous property.

To offset this, homeowners need to be fully aware of things like the square footage of their newly built rooms to ensure they’re not losing too much space. Equally, it pays to take a tape measure and mark off things like sofas, beds, and wardrobes during viewing to ensure ample space for their belongings. Homeowners may also wish to invest in one extra bedroom in their new build to overcome any potential issues with room sizing if their budgets allow.

# 5 – Think about your moving date

Less than two-thirds of new build constructions are completed on time and, with homeowners often investing and completing before building work is finished, it’s crucial to factor this in advance. For homeowners who are leaving their old property, it’s especially important to make sure of alternative accommodation like a rental property, which is an additional cost that should be factored in at the buying stage. Equally, at least setting up the potential to stay with friends and family if a moving date doesn’t come to fruition can help to avoid moving day stress when last-minute delays come to the fore, as they often do with properties of this nature.

Conclusion

New builds signify a new age in property development, and it can be incredibly exciting and beneficial to be at the forefront of that shift. However, with potentially costly setbacks at risk of making an already stressful process that bit worse, homeowners need to be aware of any potential issues and take these steps to overcome them before they take their toll. Is it possible to make the most of a new build purchase without sizable losses or significant amounts of worry? But, take care of these simple steps, and homeowners can start enjoying that new build life in no time.