Why Invest in New Builds
Buying a new build home has never been more popular; with attractive prices, bespoke interior designs and incredible specifications – the benefits of buying off-plan are endless.
Purchasing off-plan can be one of the best investments you could make, ever. Whether you are thinking of occupying a new home or simply seeking an investment opportunity with high returns, new build properties offers something for everyone.
Many off-plan developments are situated within desirable London locations such as Canary Wharf, or in up-and-coming areas seeing great regeneration and investment like Stratford and Wembley. With New Build Sales, we select the best developments with the greatest potential.
New Build properties offer a range of benefits for buyers to invest. Whether you are a first time buyer, have a growing family, or looking to downsize, we’ve helped consulted countless clients in reaching their goals.
Whatever the reason, we can help assist you in securing a long term investment when buying off plan. We have countless residential new build properties on our website, many of which never appear on the open property market.
Advantages of Buying Off Plan
Investing in off-plan at the earliest opportunity can potentially yield significant returns. The interval between initially securing the contract with a fixed price/deposit against the value of the property once completed is instantly the profit gained. By purchasing in the earliest phase, you can secure the style and type of property that matches your investment criteria, and in some cases, can influence the direction and specification of the finished property.
With off-plan, you are securing the property with a deposit whilst enjoying the inflationary trends on 100% of the capital value, which creates a much higher Initial Rate Return (IRR). For example;
- You agree to purchase at a price of £250,000 and exchange contracts with a 10% deposit of £30,000
- At completion you obtain an interest-only 90% mortgage of £225,000
- During the construction period, typically 12 – 18 months, property prices have increased by 7% from £250,000
- At completion, your initial exchange deposit has provided a return of 70% which is the initial rate of return on your investment at £17,500
A brand new home is fresh, untouched and provides a blank canvas to stamp your own style and personality to make the property your own.
Many developers offer a bespoke service to choose internal features prior to moving in, and have a wide range of designs, styles and options to really personalise your new home.
With an off-plan property, buyers are spoilt for choice and can select the decorations, kitchen units, flooring, appliances, tiles and even the garden landscaping that best suits them.
At an additional cost, you can also have the option to upgrade from the standard selections depending on your choice of home and the stage of the development.
With countless designs and more choices, you can personalise your new build to become your dream home or style your investment property to suit your target rental market.
Off-plan properties are constructed with the latest building techniques and comply with stringent environmental standards to offer better energy efficiency and low-cost living.
Built to a significantly higher specification than the majority of older homes, new properties are fitted with advanced double glazing, up-to-date heating systems, energy efficient condensing boilers and high quality insulation – all included in the price so you get more for your money.
New homes are ultimately cheaper to run and more eco-friendly. They are six times more energy efficient and generate 60% less CO2 emissions than second hand homes, saving you costs all round to reduce utility bills by more than £500 per annum.
This is a key selling point for any occupier and potential tenants.
With off-plan properties, major repairs and redecoration are unnecessary to improve your new home, and could saving you thousands of pounds in comparison to second-hand homes.
Most developers offer a range of generous incentives that the second hand market simply cannot. Attractive prices and incentives such as Deposit Paid to Mortgage Paid for a term and Part Exchange to cash back – new homes can provide a great deal.
All new homes have advanced security in place, with many developments offering concierge services, CCTV surveillance in public areas, an on-site security team and even video entryphone systems to all apartments.
High building standards also require new homes to adhere to strict regulations for electrical insulation and fire safety.
All new homes also carry a 10 year warranty via The National House Building Council (NHBC) or other leading insurance companies to provide buyers with protection against certain problems resulting from any construction issues.
This helps to ensure that you limit any unplanned costs and get the possible return on your investment property.
You can reserve your new home with just a reservation deposit, and move in straight away as soon your new home is complete. There is no forward chain, so you do not have to deal with the hassle of waiting for existing owners to move out or long chains of properties to complete.
This reduces the house buying chain and the stress often associated with moving into a second-hand home. With no immediate work required, you can take your time deciding and decorate to your own style.
- Exclusive access to the latest off plan properties
- Below market value (BMV) investment opportunities
- Reports and updates on the London property market
- Professional advice from our dedicated Buying Consultants
- And much more