New builds are springing up all over the place at alarming speeds, but is this a good property to buy? Buying a new build home may seem excellent in some ways, yet it can hold a few downsides as well. In this post we’ll review the pros and cons of building a new build home, so you can rally your thoughts and consider if it’s a good idea for you.
Table of Contents – Pros & Cons Of Buying A New Build Home
Pro: No Hidden Costs
It’s very common to get buyer’s remorse after purchasing a home because you discover loads of hidden costs. Repairs you didn’t notice before all ramp up – or things start to deteriorate way quicker than expected. You thought you were snagging a bargain, but it’s way more expensive than you realised. New builds never bring this problem as they haven’t been lived in so shouldn’t have any hidden issues. If there are some, your house is typically under warranty and all issues get fixed for free within a couple of years anyway!
Con: Often Far More Expensive
The flipside of not having hidden costs is that the asking prices are way more expensive. After all, it’s a new home – usually in a sought-after location – so expect premium price tags to appear. Even worse, you can’t haggle the price down and it will then cost even more money if you want to make home improvements.
Pro: Special Mortgage Deals Available
To counter the higher asking prices, many new builds come with special mortgage deals. These are usually designed to help first-time buyers purchase their first home. As you probably know, saving for a mortgage is one of the biggest roadblocks when getting onto the property ladder. There will be deals like a deposit unlock scheme that allows people to buy new properties with a 5% mortgage deposit, making it much easier to afford a house. If you’re struggling to raise enough money for a 15% deposit, this could be a huge advantage.
Con: Can Take Longer To Increase In Value
A downside of being brand new is that your home will take longer to increase in value. You can’t make many home improvements as it will end up being too expensive. So, you usually have to wait a few years for the house price to slowly increase. In older homes, you’re often able to purchase a property, make some snazzy improvements and see a value increase straight away.
Pro: Comes With The Latest Technology
Of course, new properties will be kitted out with all the latest home technology. In theory, this could make your home much smarter and more energy efficient!
Con: Your House Takes Time To Settle
“Settling” refers to your home literally settling itself into its foundations. When houses are built, then can sink down slightly as they find a secure place to root themselves to the ground. You won’t notice anything drastic, but it can mean the first couple of years are spent dealing with doorways that need to be resized, minor splits in paint that have to be patched up and so on.
All things considered, buying a new build home can be extremely beneficial. If you’d like funky mortgages with more incentives, a brand-new modern home and have no vision of making improvements, then it’s a great option to consider.