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Are New Build Homes Better For Buy-to-Lets?
If you’re a landlord who is scouting for new properties to invest in via an online property agent for a buy-to-let mortgage, then it’s doubtless you’ve considered all the types of house which are available. One big choice you should make is whether to invest in a newly built place or an older property. There are plenty of reasons as to why the former is a great idea. These can include several factors:
1) You won’t need to spend money decorating a new build. Plus, many will also come with fittings like carpet, curtains and other furnishings,
2) A new build won’t require you to do any repairs as a standard property may do. This will help you save cash where it counts and won’t lead to delays when moving new tenants in.
3) New builds are vastly more energy efficient than older properties. They will be fully insulated with a high EPC rating, which will mean you won’t have to worry about any modifications to help attain an Energy Performance Certificate.
4) The place will be fitted with a brand new boiler, plumbing and electrics. This means you won’t be caught worrying about the stability of your appliances and infrastructure. Plus, maintenance costs will be low. Most new builds also come with a five to 10 year warranty against repairs.
5) New builds are also often built close to local amenities, maximising their appeal with tenants. Many also come with their own gyms, shops and cafes as well as with strong transport links.
6) You can purchase the property off-plan. This might help you get a discount and increase the amount of cash you’re able to generate from its rental.
Potential negatives to a new build
Buying a new build off-plan can see you save substantial costs. But it’s not without risk. Delays are often frequent, the developer could run into problems before completion and you may find that obtaining a buy-to-let mortgage is difficult when purchasing off-plan, requiring you to go through a specialist mortgage broker. Plus, the deposit may also be larger than with a standard buy-to-let.
Although new build properties are often in great locations, some are not. It’s also ways very important to make yourself familiar with the area so as to present it in its strongest light with potential tenants. Are schools nearby? Does it offer solid transport links? It the area devoid of nightlife? Thinking about the exact type of tenant you’d like to market your property to will go a long way to helping you identify the strengths and weaknesses of any potential locations.
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