Whether to buy an older, characterful property versus a pristine new one can take a fair amount of deliberation when considering your next buy-to-let purchase.
With new builds popping up all the time in both our Northwich and Congleton patches it seems that the newer property is the way to go. But a savvy investor should always do their research prior to embarking on their buy-to-let journey.
ADVANTAGES OF NEW BUILDS
Energy Efficiency
A lot of focus is being put on green energy at present in light of ever-increasing domestic fuel prices. With plans to increase the Energy Performance Certificate to a ‘C’ level by 2025 a new build property will meet or even exceed this benchmark whilst embracing greener technologies. Better for the environment and better for tenants’ pockets in the form of reduced bills, encouraging them to stay in the property for the longer term. A new report claims new builds have typical energy bills some £400 a year less than other properties. A win-win for all concerned.
Warranties
New homes will come with a builder’s warranty to give you that peace of mind in case anything goes wrong. Providers such as the National House-Building Council (NHBC), Local Authority Building Control Warranty (LABC) and Premier Guarantee offer these warranties on usually a 10-12 year basis.
Low Maintenance
Investors looking for a relatively hassle-free investment should look at the more reputable developers to ensure that any snagging that is identified is rectified in a timely manner. It’s really good practice to do background research on a particular house builder as certain ones can be difficult to deal with should you need to get them to address any problems with the workmanship down the line.
In theory new builds are lower maintenance than your older properties but you still need to check the reliability of the developer in responding to snagging issues, some companies have better history at this than others so do your research.
Tips for Buying a New Build House
- Negotiate – If you are buying off the plan then you will have room to negotiate on the price. The earlier you show interest in the development, the more chance you have of successfully negotiating on the price.
- Know What You’re Paying For – When buying off-plan, be sure you know exactly what is included in the price. Will you get white goods and turf, or will you have to buy them yourself?
- Condition Of The New Build – As well as considering a Condition Report, you should arrange for a Snagging List, which is a detailed list of the outstanding finishing works which the builder should complete before you move in.
- Beware of Delays – If you’re waiting for your new house to be built, then you might experience delays which could affect the completion date.
For more of a read on new builds try New Build Homes | Compare My Move
ADVANTAGES OF OLDER BUILDS
Space
On the whole older or existing-build properties tend to offer more in terms of space. It’s quite common for bedrooms in ex-local authority properties to all be doubles. Whereas a lot of new builds tend to have smaller third bedrooms for instance. However this is not always the case and you would need to consider each property on its own merits.
Scope For Renovation
For the more imaginative investor older properties have the scope for renovation to utilise space in a better way. We’ve all seen the property renovation shows with the all-important before and after pictures to showcase a property having undergone a transformation. Not only is this a value adding exercise but it will appeal more to tenants in the long run.
Higher Yields
As a general rule of thumb your older property can realise better yields, particularly if it’s undergone a renovation as discussed above. In addition to this if there is potential for capital and rental growth the numbers can start to look even more appealing.
On balance there are several things to consider when purchasing a rental property and it very much depends on your personal circumstances and motivation for holding an investment property.
New or old, small or larger property……we give all our properties our full attention because we are professional and passionate about all the property we manage and all the clients we look after
So speak to us at Belvoir 01606 783599 and we can advise you on the best course of action
