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You make me feel brand-new
Jane
Attwood considers the reasons why buying a brand-new house is so
popular
When you buy a home, your first aim
is to make it your own. If the thought of devoting every Sunday
and all your spare cash to changing the decor and fittings to your
own taste isn’t your idea of fun, what better way to get around
this than to buy a brand spanking new property?
Why buy new?
Increasing numbers of people are choosing to buy a newly-built
property. Here are some of the reasons why:
•As the very first occupant you’ll have a clean canvas
on which to stamp your identity.
•Newbuilds can offer higher building standards than many ageing
properties. This means low maintenance in years to come. And if
you do experience problems, the majority of new properties come
with a builder’s guarantee .
• New homes are often energy-efficient, with modern heating
systems, full insulation and double-glazing as standard. This keeps
down running costs.
•Many new homes have window
locks, smoke detectors, burglar alarms and brand-new electrics so
security issues are covered. This could even mean lower house insurance
premiums!
• A few decades ago, new properties had a reputation for being
small, low-quality, characterless houses. Today there is a wide
variety of newbuild properties on offer from loft-style apartments
to individual family homes. They are designed to be space-efficient
and more suitable to 21st-century living.
• Finally, an important plus point is the relatively hassle-free
buying process. There will be no onward property chain and, as you
deal with the developer directly, no estate agent. As soon as your
property is finished you can move in.
Where do I start?
Firstly, you should go through the same process of picking
your location as if you were buying any other type of property.
Factor in local transport links, amenities and schools. Check the
local planning office for any forthcoming developments, and also
keep your eyes peeled for news of regeneration projects because
new housing in the area will either be part of this or is likely
to follow.
New developments are advertised in local and national newspapers
and on developers’ websites. According to the National House
Builders’ Council (NHBC) builders registered with them construct
approximately 85 per cent of new homes in the UK, so their online
register could be a sensible first point of call. There are also
online databases specialising in new homes from numerous developers
(see contacts).
Do developers offer any incentives?
Yes, many have price discounts and other promotions, particularly
to first-time buyers, who are increasingly opting for new properties.
According to recent research conducted by an online new homes specialist
SmartNew Homes.com, as much as 29 per cent were sold to first-time
buyers last year.
Some developers offer to pay the deposit or the stamp duty on the
property. Others may offer furniture packages or help with legal
arrangements. Many tailor their incentive packages to the individual
or promotions are site-specific.
If you’re already a homeowner, some developers offer a part-exchange
scheme. One such developer is Berkeley Homes. Its underwritten home
exchange service means that you can leave your house on the market
until six weeks before completion, knowing if you fail to sell it
on the open market you have a guaranteed sale with them. Alternatively,
some developers offer a free agency service to sell your home for
you, so you don’t lose your dream plot.
If you already own a newly built property and are keen to buy a
second as an investment, you might be able to benefit from help
from your developer in doing so. Barratt Homes offers purchase packages,
which may include free deposit and help with letting. Check with
individual developers for details of all types of incentive.
What’s the process?
To reserve a newbuild you will need to pay a reservation
fee in line with the property value. As de-mand is high, you may
only have a matter of weeks before you must make a commitment to
buy. After this time you may lose all or part of your deposit. You
will be given an anticipated completion date, but this may change.
It is sometimes possible to buy off-plan. This is before building
has begun, when the property exists only in plan form. In this instance,
check the layout and dimensions in detail and visit show homes for
a 3-D perspective. One benefit of off-plan purchasing is that you
may be able to choose which fixtures and fittings you prefer at
this point, such as those for your kitchen and bathroom, and sometimes
even flooring, curtains, lights and appliances. “It gives
you an extra opportunity to personalise your house at competitive
prices,” says Bev Weston, marketing director at David Wilson
Homes.
This may even be possible at later stages. “We hang on until
the last possible minute before colours, kitchen, etc are chosen.
About 75–80 per cent of our customers are able to make selections
themselves,” adds Robert Kerr, marketing manager at Rydon
Homes.
Exchange occurs when the deposit on the property is paid. Once the
building work is complete, a final builder’s inspection must
take place before a guarantee can be issued. The guarantee is required
for the mortgage to be paid and completion to take place.
Do I need a different mortgage for a new home?
A mortgage for a brand-new home will be no different from
one for a second-hand property. The only obvious difference is the
link between completion and the warranty. As Sue Anderson, head
of external affairs at the Council of Mortgage Lenders (CML), explains:
“The CML introduced a new pro-cess in April 2003 where sign-off
on the mortgage is not provided until a statement that all is well
with the property after its final inspection has been received by
the buyer’s conveyancer.” Some lenders will conduct
their own valuations, others won’t. When valuing an unfinished
property, lenders will instead often have to rely on the builder’s
guide price.
As we have seen, buying a brand-new house is relatively straightforward
and can give you some benefits that buying ‘second-hand’
can’t. And don’t forget, if you are interested, to ask
the property developer what deals they have on certain properties
and negotiate – if you don’t ask, you don’t get!
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