Should You Buy a New Build or an 'Second Hand' Property?
There are pro's and con's when deciding to buy a new build or a second hand property. It really is a personal preference decision. You need to decide what is most important to you from your list of “primary” must haves and decide which type of property ticks the most boxes. Here is a list of advantages and disadvantages to both...
People often ask if they should buy a new build property instead of something 'lived in', and rather frustratingly, there is no right or wrong answer. So let us try approaching the question in a different way.
Here are the pros and cons of buying a new build, followed by our professional advice as to whether or not you should it would be a good decision.
The Pros of buying a New Build
Good to Go
Often when you purchase an older property, there is at least a bathroom or maybe the kitchen that needs some kind of renovation. You won’t have that problem with the blank canvas a new build can offer. All the rooms will have fresh, modern interiors. There'll be plenty of opportunities to make your mark, but initially, you’ll be able to simply unpack your staff and start enjoying your new home.
Modern Living
Most new builds are kitted out with the latest technology, ‘smart home’ features and an open-plan layout. If you’re that way inclined, look no further than a new build for your ideal lifestyle.
If you buy a property “off-plan” (prior to building commencing) you will often be able to choose your plot that you wish to purchase based upon the design and specification of the property and may also be able to choose kitchen and bathroom layouts and fittings from a range of options. However, these are sometimes 'extras' and must be paid for in addition to the property price.
Potentially Cheaper Bills
Currently a popular topic, new builds have many building regulations to comply with, and as such they are far more energy efficient than older properties. The majority of new builds have an A or B EPC rating. You will find precious little of those in older properties.
That, of course, means cheaper bills, plus it opens up options of green mortgages.
No Chain
This is one of the most underrated benefits of buying a new build.
Anyone who’s been involved in a property chain before will know how frustratingly tenuous they can be. As you will be the first owner of the new build, there won’t be a chain of buyers above you, thus removing one of the main stresses of buying a home.
Incentives
Selling new builds isn’t always a given for developers, so it’s not unheard of for them to throw in some extra incentives in order to make a sale. There are often both financial and non-financial incentives to entice you to buy. These may include paying your stamp duty or legal fees and throwing in some extra appliances, carpets or a kitchen upgrade.
Warranties
All new builds come with a 10 year warranty. But why would you need a warranty? Well, that brings us neatly to the CONS of buying a new build...
The Cons of buying a new build
Build Quality and Snags
New builds have become infamous for a lack of quality as a result of cost-cutting development. Horror stories of crumbing walls and defects by the dozens pervade the press, causing many buyers to completely rule out ever buying a new build.
Indeed, snags and structural issues are common in new builds. But it doesn’t necessarily mean that corners have been cut; it can take as long as two years for plaster to properly settle and wooden doors to adapt to the new surroundings.
If you’re buying a new build, the best thing to do is arrange a snagging survey as soon as the developer will allow; they’ll be able to reassure you that all is well, and they’ll liaise with the builder to nip any potential issues in the bud.
Fluctuating Values
New build properties can often fluctuate in value much more than second hand properties. One reason is that there are new build developments popping up all the time which leads to increased supply and choice and, therefore, a decrease in value.
However, after time, the value will settle to local market conditions - such is the strange nature of property.
Complicated Legals
Conveyancing is a minefield at the best of times - for new builds, it can be even more complex. Also, there is a common issue of new build developers insisting that the buyer uses their recommended conveyancer which can result in the contract being more in favour of the developer, and not you.
You should therefore insist on choosing a solicitor yourself, one with experience of new build conveyancing, and one who will ensure that you, your deposit and your rights are protected.
Delays
If there has ever been a new build that has been completed on the originally specified date, please tell us. We’d love to hear about it!
In all seriousness, delays in new builds are extremely common, and that is more than just an inconvenience; it affects mortgage offers and results in unexpected rent and storage costs. All in all, delays are just really stressful.
Space
There’s usually less of it! New build developments are often designed to pack as much property in as little site as possible to maximise profits, ultimately meaning you get less space for your money compared with older homes.
Storage space generally takes the biggest hit. That’s definitely something to keep in mind when looking around a new build.
Our Advice?
If you’re in the market for some fresh, modern living, then new build homes can be a really good long-term investment.
Emphasis on the long-term, because often, that is the sure-fire way to make money here. If you think you’ll be selling up after a year or two, think again before buying a new build.
Also do plenty of research and due diligence, in the form of a snagging survey, to ensure everything’s above board with the development. You may still encounter snags after moving, but as long as there are no major structural issues, you should be fine.
Only you can say for sure whether or not a new build is right for you.