One of the various decisions buy-to-let property investors have to make is whether to acquire a new build or a home that has been previously occupied.
If the success of your investment depends on attracting enough demand from tenants to support regular rental yields and minimise the risk of void periods, it’s an important decision to get right.
For many buyers – particularly those looking into off-plan property investment – new builds are an attractive option, thanks to benefits like:
New-build homes are generally built to high standards and specifications, providing a level of quality that will be attractive to new tenants. The fact that everything in the home is brand new means the people moving in shouldn’t have to worry too much about repairs, general wear and tear and other issues that often come with older properties.
Furthermore, new builds will provide high levels of energy efficiency, meaning tenants could benefit from lower utility bills.
The National House Building Council provides certain protections for new-build properties under the Buildmark scheme. This offers key assurances for buyers including pre-completion insurance cover and a two-year builder warranty, which places an obligation on the developer to repair any defects that aren’t caused by general wear and tear or maintenance issues.
After the builder warranty ends, Buildmark provides a further eight years’ insurance cover up to a maximum of ten years from the completion date. This offers valuable peace of mind for investors who want to feel confident their asset adheres to certain quality retirements and will retain its value.
A blank canvas
Homes are much more appealing to tenants when they’re effectively a ‘blank canvas’, meaning the people moving in can stamp their identity on the property and make it feel like their own.
New builds are designed to be completely neutral, giving either you or future inhabitants the freedom to make choices about the appearance and style of the property.
From a purely practical perspective, one of the most appealing features of new-build homes is the lack of a chain of purchase to worry about.
There is no risk of your acquisition being held up – or possibly falling through entirely – because current occupants are unable to vacate the property until they finalise their own purchase.
If you’re interested in a new-build property investment and want to learn more about current prospects and opportunities in the UK, you can contact Experience Invest today.