Is buying a new build a good investment? As discussed in our previous articles, investors can choose from numerous property investment strategies, but one of the most popular is new build property investment. Purchasing a property is one of the most costly financial decisions an investor can make, so finding the right opportunity that best suits your needs is crucial. New builds are an incredibly desirable option, with efficient energy offerings and lower maintenance costs.
The benefits of investing in a new build property
New builds can provide a solution for many walks of life, from first-time buyers to downsizers, making it an in-demand investment for investors and renters alike. Here are just a few of the benefits.
The demand for efficient low-energy properties
New build developments are built with energy efficiency in mind, which has become one of the crucial solutions to affordability as rising energy prices continue to hike throughout 2022 and beyond. EPC data shows that 80% of new builds have the top energy efficiency rating (A or B). Built with high-quality materials for better insulation, modern boilers and double-glazed windows, investing in a new build will result in a lower heating bill and owning a more eco-friendly property. Not only is carbon footprint reduced, but a low-energy property is also attractive to both renters and buyers, meaning both buy-to-let and buy-to-sell hold fantastic opportunities for investors.
New build properties are sold directly by the building company or developers, eliminating the possibility of a property chain. Purchasing processes without a chain are often quicker and at less risk of falling through because there is no reliance on people needing mortgage approval or selling their original home.
One of the most beneficial aspects of new build property investment is the ability to move tenants into the home as quickly as possible to start making a profit.
New builds often come furnished with all of the necessary white goods, so tenants are highly likely to select a new build home for ease and convenience. Hiring a property management company could also help investors secure a tenant before building work is complete.
Strategy for growth in fast-growing areas
Newly built properties close to regeneration areas or valuable amenities such as local business districts, shopping centres or train stations are likely to grow in price as time passes. Buying off-plan new builds in an area where prices continue to rise allow the opportunity for investors to benefit from equity growth from the get-go.
Cost-effective maintenance and guarantee
The clue is in the name. Everything in a new build property is just that, new. All rooms, fixtures and fittings will be to the most modern standards, with no risk of usage or damage from previous owners – saving money on maintenance and revamping costs.
New build properties registered with the National House Building Council come with a 10-year warranty and become part of the protection scheme that decreases maintenance costs and provides protection – this comes as a standard with many new builds and can cover up to 10% of your deposit.
Is buying a new build a good investment?
At Knight Knox, we recognise the advantages of investing in new build properties. Not only do they retain their value, but they are in more attractive locations that are growing in popularity – perfect for meeting demand. Get in touch with us today to learn more about the next steps.