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The Pros & Cons With buying a New-Build Property

There are several pros and cons associated with buying a new-build property. In this article we give you an insight of new-build homes advantages and disadvantages.

New-build properties have distinct advantages in that they rarely require expensive repairs up front, and warranty conditions will still be favourable. New builds do, however, have particular issues when it comes to getting a mortgage for purchasing them, and there may be structural issues that are not readily apparent, but all this can be avoided by ensuring Structural Insurance is in place.

New-build homes: the advantages

New properties rarely require more investment than the purchase price. Extensive repairs are typically not needed for years, and if the home is registered with a reputable Structural Insurance firm such as CRL, a 10-year warranty and protection scheme will be part of the package.

When it comes to financing, some developers arrange mortgage procedures for a whole estate beforehand. If the developer is connected to a certain lender, it may be possible to obtain a mortgage with a lower deposit.

If the house is still in the build process when bought, the new owner could potentially get certain features, such as the decor, changed to suit their requirements. (There may be added fees involved, and some builders may not undertake such alterations until contracts are exchanged.)

New-build homes are also more energy-efficient than older properties, although a buyer should always ask to see the place’s energy performance certificate to properly assess its efficiency levels.

New-build homes: the disadvantages

Anyone buying a new-build that’s still in the construction phase can face some obstacles.

On the financing front, the aspiring homeowner may only have a site and a plan to present to lenders, most of whom will not release the final loan until all work is officially completed. The owner may also be required to make staged payments, which puts them in the position of having to pay for two homes simultaneously.

 

Structural Defects Insurance

New-build homes can also have structural issues that are not readily apparent. A previous survey of UK homeowners by consumer magazine Which? talked to 200 buyers who had purchased a new-build in the last five years. The results revealed that more than half of them had encountered problems, many of which remained unresolved.

Below is a breakdown of the problems reported:

  • 31% involved the quality of fixtures and fittings
  • 25% related to boiler issues
  • 16% were utilities-related
  • 12% of the problems were structural

Other irritations involved delays, hidden costs, and final size. Three out of 10 buyers reported move-in delays as well as expenses that came to light after purchase.

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