Published 29th September 2022
Buying a new build home can be a great option, from first time buyers wanting to get on the property ladder, to those looking for a larger family home or those looking to downsize. Weighing up the options is important, so here we take you through the pros and cons of buying a new home versus an existing property.
In the current economic climate, it’s now more important than ever to look at the different housing options available for those looking to buy and sell a property. Location, style of property and financial incentives can make all the difference when choosing where to live and what type of house to buy.
Rightmove and other property websites, give buyers the advantage of being able to search for all variety of homes without having to step outside the door. If you don’t know much about new homes, then searching directly for new homes near me is a great way to find out about new build developments in your area and see what’s available versus existing properties.
Considering the conveyancing requirements is important when buying a new build home as it is a different process than for existing homes. Factors such as building permission and restrictions in the contract will need to be looked at so you will require a conveyancing solicitor that deals with new homes. When looking at conveyancing costs, ensure you get a conveyancing quote that is for a new build property.
A big plus point when buying a new build home is the incentives offered as this can make a home much more affordable, particularly for first time buyers. Incentives such as having stamp duty paid, flooring provided, and high spec appliances are common. Financing schemes like Shared Ownership and Help-to-Buy are also available when buying a new build house which can be vital to help people overcome rising house prices but still get on the property ladder. The starter question to ask yourself is 'how much can I borrow with a mortgage?' A mortgage calculator is a great way to find this out and give you a head start to look at the incentives that matter most.
When purchasing a new home, an offer is often based off the developer’s building plans and visiting a show home. Buying in this way is very different to looking at home in reality with considerations such as light, parking, surrounding housing and green spaces being difficult to visualise. Looking at an existing property allows you to get an actual feel of the property, the area and your neighbours before you make your offer so some people may feel more comfortable with this approach.
This is a big consideration when it comes to buying a new build home as, like a new car, the value of the new home can drop once you have moved in. Developers will be keen to sell the dream with beautiful show homes designed to wow and entice a high premium so do your research. Look at house prices in the local area, understand future plans for the development and remember that developers can often reduce the price of a new build sold later on the same development so it can pay to be cautious.
The latest smart features and modern designs can be very appealing. Modern ensuite bathrooms, open plan kitchens with modern equipment and appliances is a big selling point. Smart home technology like thermostats, locks and house alarm systems are also common features now as are energy saving features such as solar panels being built into the fabric of the home.
With rising energy prices, a new home built to meet new energy standards is becoming more important than ever. The Home Builders Federation published a report in March stating that buyers of new build homes are saving more than £400 per household per annum on their energy bills. It also stated that 84% of new build homes receive on A or B EPC rating for energy efficiency compared with 3% of existing homes reaching this standard. This equals lower energy bills so saving you money as well as opening up better financing options like green mortgages which give cheaper mortgage rates.
If you are buying a new home as a first-time buyer, then another advantage to a more stress free move is that it will be chain free. You don’t have to wait for the owner to move out or deal with delays caused by homeowners during property purchases. Even if you have a house to sell, developers are keen to help with the sale of your current home. There can however be delays that occur during construction which can delay your moving date.
The location and volume of new build housing developments can be the cause controversy. Concerns over building on green belt land and in countryside areas raises issues over the effects to the local landscape and the increase to traffic and pollution.
The choice between living in a new build home versus an existing home can deliver a different measure of advantages and disadvantages. The choice ultimately comes down to personal preference, house prices, your financial situation and overall attitude to what you are looking for. As with all home purchase decisions, the key is do your research and work out what suits you best so you can move into the home of your dreams with confidence.
Whether you are looking for a conveyancing quote or conveyancing advice, Home Legal Direct are here to help. Contact us today and speak to a member of our conveyancing advisory team.
|What is conveyancing?|
|What does the new stamp duty rules mean for homebuyers?|
|Stamp duty calculator|