Wednesday 17 May 2023
Investing in new builds / off-plan property is one strategy of property investing. Investing in a new build could be deemed as less hassle, so if you are wanting to be a hand-off investor it may be the option for you. Some benefits to investing in a new build include…
Higher EPC Rating
With government goal posts for EPC ratings increasing, the energy efficiency of an investment is something to be seriously considering when investing in property if you don’t want to be shelling out money for improvement bills later down the line. New builds are often equipped with the latest energy-saving building materials and smart technology, making them up to four times more energy-efficient than older properties.
10-year structural warranty
Most new builds come with a warranty for 10 years which covers any repairs related to the fabric of the property. This means, for example, if your electrics become faulty or the plaster starts to crack on the walls or your heating stops working, these can all be covered by the warranty.
As the building is brand new, the likeliness of any repairs needing to be done is low. This provides peace of mind that there won’t be any surprising repair bills, eating into your bottom line. As mentioned above, many of your fixtures, fittings, and structural components are likely to be covered by warranties or guarantees.
Purchasing a new-build home means you'll be "chain-free," so you won't have to wait for a seller to find a new home to move into before you can move in. If you find a new-build property that's ready for immediate occupancy, the sales process can be quick, allowing you to start renting out the property & making money without delay.
Incentives and offers
Developers of new-build properties may offer incentives and deals to entice buyers, such as stamp duty exemptions, free furniture packs or contributions to legal costs. These benefits can help make the process of buying a new investment more affordable and accessible.
As you can see from the above, there are multiple benefits to investing in a new build / off-plan property. This strategy definitely lends itself to a property investor who is time-poor but cash-rich & wants as much of a ‘hands-off’ investment as possible.