Looking for a buy to let? - Should you buy a brand new home.
If you are looking for an investment property chances are everybody will tell you what type of property you should buy and exactly how to do it. Buying a brand new home can have its pros and cons so like with any property purchase you must do your research.
- A new modern, fresh property will appeal to tenants.
- Some developers will do leaseback schemes. This means they will lease the show home property from you offering you guaranteed rental income for the entirety of the lease. They will look after and maintain the showhome until all the properties on the development have been sold.
- Good energy rating meaning low cost energy bills for your tenant.
- The majority will come with a 10 year National House Building Council (NHBC) warranty and protection scheme.
- A new property is only new for a brief time you will pay a premium. A bit like a new car being driven a way from the showroom.
- New homes always have less storage and space compared to similar older properties. It is always worth comparing the space and rental value.
- Developers will always present their show home using various illusions and tricks to make you think there is more space.
- Completion dates are usually delayed which might affect your mortgage as there is usually a time period for which your mortgage is valid for.
- A new build might look shiny and new in the beginning but 18 months down the line there will be maintenance and redecoration from cracks appearing.
If you are thinking of buying a new build I would strongly recommend researching the developer and other developments they have done. Make sure you know exactly what your are paying for and what specification is included in the properties price.
What to read next: http://www.perrenproperty.co.uk/blog-index/springboard-dorking-tenants-into-your-property
What to do next: How much rent can you achieve? Find out here from the comfort of your sofa. http://valuation.perrenproperty.co.uk
Speak to Charlotte: If you need some help with your buy to let search or current rental property I would love to hear from you. Drop me a line at email@example.com
or call me on 01306 880 442