Are Newly Built Properties Likely to Lose Value after You Move In?

The housing market in the UK has been doing well in the last 18 months or so. There was an incredible general increase in house prices of 8 percent from July 2020 to July 2021. For this reason, purchasing a new and high spec home in a walk-in state in a convenient location will be a good investment.

Why Should You Buy a New Property?

There are numerous benefits of purchasing a newly constructed property. They include:

Since the house is new, everything will be in good condition, and you won’t need to spend a lot of money on repairs or renovations.

You will not have an onward chain because no one will need to vacate the premises.

Once you purchase an off-plan home that is yet to be constructed, you can influence the design of the house and choose the types of fittings and fixtures used.

Modern homes are constructed as per today’s building standards which need them to be energy efficient. This saves you money and reduces the impact on the surrounding.

Nevertheless, the major shortcoming of newly built property is that the moment you move in, its main selling point will reduce.

That’s why many mortgage providers will offer a mortgage loan for a newly built property that is less than the price you’ve agreed on. This is because they expect the value to decrease once you start living there, and the house is no longer new and has undergone wear and tear.

So, You Need to Choose Wisely Whenever You Want to Invest.

In the product market, it will be hard to predict the future price fluctuation of properties. So, when it comes to investing in a property, it’s essential to purchase a new house with the intention of moving in or leasing it in the case of purchase to let. That should imply that the purchase stays worthwhile financially in terms of purchase charges and early exit charges from the mortgage if you move in fast.

Tips for Buying a Newly Built Home

When you want to future-proof your newly built home purchase, there are some tips to help you make the right choice. They include:

Location

Location is important when it comes to buying any property. Amenities like transport links and good learning institutions will improve the value of your property. If you realize an up-and-coming region has planned renewal of the pipeline, you should get in early as this will improve the value of your property in the coming years.

Research

Ensure you do your research on the property management company and the developer. Get reviews from past buyers and ensure developers are following the building standards and regulations. Check out other homes maintained by the company to find out if communal areas and individual properties are well maintained.

If you are planning a move, you also need to do your research on the best moving companies and professionals for the job. This is one area that most homeowners tend to ignore when it comes to planning a move. Make sure you work with leading professionals from man and van in Ealing to ensure that your assets do not end up getting damaged during the moving process. 

Certification

Ensure that there is a valid architect’s certificate and home warranty, and you have a copy before you purchase a home. This is to make sure that structural defects will be handled by the developer.

Get a Snagging Inspect

On top of the homeowner’s report from a certified surveyor, you need to get a snagging inspection. This will emphasize on the issues pertaining to the construction, like workmanship and the areas that doesn’t meet the building standards. Basically, you need to plan a snagging inspection before you sign any contract. However, the inspection can be done once you buy the property and move in. it may take a little longer to get the issues fixed once the developer takes the payment.

Add Value to the House

If you get an opportunity to add value to your house in the future, then this is a plus. You can do this by extending or renovating the garden or house. This will increase the value of your home. You can also get potential planning permission for a home you don’t own yet if you have unique plans and want to know if they will be applicable before purchasing.

Know the Size of the Development Area

Maybe your new property is part of the larger development; ensure you know the size of the development. You also need to find out if your newly built property is the first in the series of a wider development in the vicinity, which might have a great impact on the value of your home.