New build homes are a popular choice for many people across the country.
Making the decision to get on the property ladder is one of the most significant financial commitments you will likely ever make. As a result, it pays to be well-informed.
Here we look at some tips for buying a new build property.
What are the benefits of buying a new build?
1. You can purchase a home before it is built.
A large number of homebuilders and developers provide pre-construction houses. This means that you will be able to select your perfect home before it is even completed.
For those who purchase off-plan in a location where house values are increasing, they may be able to enjoy equity growth before they even move into their home.
2. You have the option to add your own preferences.
The ability to customize essential design elements of a new home is offered by some homebuilders and developers to prospective customers.
This could include everything from doors, cupboards, and plug sockets to lawn landscaping, tiling, and the colour of your kitchen worktops, to name a few things.
The sooner you reserve your new house, the greater the number of options you will have. It is possible that you will be charged an additional fee for customized adjustments, so read the fine print carefully.
3. New construction requires little maintenance.
When you move into a new property, you will not be required to carry out repairs, maintenance, or redecoration.
This type of effort is likely to be unneeded for the first few years, at the very least.
How do you buy a new build property?
Locating your desired home
Many new-build homes are sold before they are completed. This indicates that they have not yet been constructed. It is possible that you will be shown a model home or detailed drawings, or visit display homes.
There are numerous advantages to purchasing off-plan, not the least of which is the ability to be involved in the construction of your new house from the beginning. However, you may have to wait a little longer.
Making a reservation for your future house
Once you have identified a development in which you would want to live, you will need to pay a reservation fee in order to reserve your spot.
Getting the papers in order
Your next step will be to hire a conveyancer to take care of the legal aspects of your transaction.
It is also important to lock in your mortgage rate at this point. However, this is a little more difficult than it would be with an existing house.
This is due to the fact that mortgage offers are normally valid for three to six months.
Check to see that your completion date is within the time frame of the mortgage offer you have received. If you do not comply, you may find that the offer is no longer valid.
In the event of a delay, some mortgage lenders may be willing to extend the time period for the offer. There are mortgages designed specifically for new-build properties that are more flexible than traditional mortgages.
Waiting for your new construction to be completed
Depending on the location, it could take anywhere from a few months to several years before an off-plan home becomes available for purchase.
The shortstop is the date by which the developer intends to be finished, while the long stop is the date by which the developer is required to be finished.
With your home builder or developer, come to an agreement on a long-term completion date. You will be entitled to compensation if the property is not completed on schedule.
