Buying a new-build home can seem like a great choice. It is a modern, energy-efficient home that no one has lived in. This means you can truly make it your own. However, new builds can come with their own set of issues from building delays to snagging problems.
If you are trying to decide if a new build home is right for you, here is a breakdown of the pros and cons of buying a new build.
Advantages of buying a new build
Chain free
One major benefit of buying a new property from the developer is that you won’t have to deal with a chain. This makes the buying process much simpler and more straightforward. If you are also selling a property this can make your property more attractive to potential buyers.
Modern and energy efficient
New homes are built to the current trends so you will be getting a modern home, with the latest technology and appliances.
Developers must build properties that are energy efficient and meet government building standards. This can benefit you by saving you money on your energy bills.
Opportunity to customise your new home
Depending on the stage of the new development, you might choose the finishing touches for your home. This way, you can add your personal touch to the property before you even move in.
Buying schemes and incentives
Developers often provide deals and incentives for buying properties directly from them as they want to sell their homes quickly. These could include Stamp Duty contributions, conveyancing fee payments or low deposit options.
New builds also often qualify for government-backed programs. These include the First Homes scheme and shared ownership options, both of which can make buying a new build a more affordable option.
New home warranties
A newly built home will come with a warranty from the developer and these tend to be valid for 10 years from the day of completion.
The first two years usually offer more comprehensive cover, so for defects in work like plumbing or electrical issues. The builders would be responsible for fixing these problems. The following 8 years of cover is generally for more serious structural problems; these include issues with the roof or foundations. Usually, the insurance provider covers these.
Disadvantages of buying a new build home
Small room sizes and plot space
Developers want to include as many homes as possible in a project. Because of this, the homes may be smaller and have less living space than older properties. Outside space can also be limited, potentially offering little privacy from your neighbours.
Mortgage and deposit challenges
There is a chance that if there are delays, you may end up not being able to complete before your mortgage offer expires. This means you would have to reapply for your mortgage which may then be at different rates to the original.
If you decide to buy off-plan, you must sign a contract and pay your deposit before the property is built. If for whatever reason you are not able to proceed when the property is ready then you would lose the deposit. It’s really important that your conveyancer guides you through this process, and explains the risks, before you exchange contracts.
Construction delays
It is not unusual for new developments to have delays in construction, these delays could range from a couple of weeks to several months. This could add additional stress and expenditure to your move, if you have to look for temporary accommodation or storage for your belongings, while you wait to be able to complete the purchase of your new home.
Snags and defects
It is not uncommon to have some initial issues with your property when you complete. Once you have your keys it is important to get a snagging survey done as soon as possible. These should pick up any issues or defects with the building work, which the developer should then agree to fix, although this may happen after completion.
More expensive than older properties
You may find when looking at new build homes that they are more expensive to buy than a home of a similar size that is older.
New builds may have extra management fees for maintaining shared areas; read the documentation you receive from your conveyancer carefully and make sure you are aware of any ongoing costs you might have to pay before committing to the purchase.
If you are looking for a home, you can move straight into it with minimal-to-no work needed to match your style, then a new build could be for you. It is important to read all documents and contracts carefully before you commit. Make sure you understand what will happen if the developer fails to meet deadlines.
