Is buying a new build home a good investment?1 September 2021
Making the decision to purchase a new property isn’t always an easy one. There are many factors to consider from budget to location, an older property or a new build home. Want to know one of the top questions our Sales Executives get asked by house hunters? It’s one to ponder. Is buying a new build home a good investment?
Whether you are a property investor or you are looking for your forever home, a new build home in Devon can make an excellent investment for a number of reasons.
1. Housebuilders regularly offer a buy and rent back scheme
By purchasing a new build home through a buy and rent back scheme, you are earning a guaranteed income whilst your home is still being occupied by the house builder.
For example, our show home at our Bovey Tracey site, Longston Cross, is currently available through a buy and rent back scheme. As we still need to use this four bedroom home as our show home for the duration of being on site, you won’t be able to move in straight away but you can purchase the property and rent it back to Devonshire Homes.
Not only will you receive £1,350 per month for two years* from Devonshire Homes, you will also have a ready-made home just waiting for you to move into. You can enjoy carpets, curtains, blinds, quartz worktops, extra floor tiling, fully landscaped gardens, light fittings and wall décor all included within the price.
These schemes are great for house hunters who aren’t looking to move into their new home immediately.
Remember, housebuilders regularly offer other incentives too for buyers looking to reserve a new build home such as: a contribution towards stamp duty and legal fees, or help with moving costs, or even thousands of pounds worth of furniture for their new home.
Finally, make sure you don’t forget about the Help to Buy: Equity Loan Scheme. This Government scheme is only available to first time buyers and can only be used on new build homes, subject to eligibility, terms and conditions. By reserving a new build home using Help to Buy, you only need a 5% deposit. The Government will contribute 20% of the value of the property and you will then secure a mortgage for the remaining 75%.
With so many schemes and incentives available, it’s hard not to believe that a new build home is a good investment.
*Rental period will be subject to when completion takes place.
2. You will save in the long run
New build homes are just that. Brand new. The risk you take when purchasing an older property is that you may have to invest in repairing and replacing items such as the boiler, flooring and even the roof. New build properties are also extremely energy efficient. Built with insulation and efficiency in mind, that often means lower running costs, a smaller carbon footprint and cosier living spaces too. A Devonshire home is built to last and comes with a 10 year NHBC, LABC or Premier warranty to provide you with peace of mind when it comes to safeguarding your investment.
3. Reserve off-plan and benefit from capital growth
For property investors who are looking to rent their new home to a tenant, a new build home might be the way to go. For starters, a brand-new property with modern décor will appeal to a wide pool of tenants.
Also, unlike older properties, you can purchase a new build home off-plan. Whilst the home is under construction, there is potential for capital growth as the property grows in value during the build period, which may mean a greater return on investment for you if you choose to sell the property in the future.
With the potential for the geographical area to grow and develop during the construction period, you may have great demand for your property when you are ready to start renting it out to tenants. The location may also benefit from upgraded amenities and facilities and become more desirable thanks to housebuilders having to make various community contributions through S106.
4. It’s up to YOU how you decorate your new home
When asking ‘is a new build home a good investment’, you should consider how much it will cost you to kit out an older property to achieve the interior you desire.
As long as you reserve early enough in the build stage, you can call the shots on what tiles, carpet and kitchen worktops you would like in your new build home, plus much more. Once you have reserved, our Sales Executives will present you with an array of different options for the fixtures and fittings inside your property. This is all included within the price.
If you renovate an older property, you are looking at paying potentially thousands of pounds on top of the purchase price. Every situation is unique of course, but the average renovation for a three bedroom house costs between £38,000 and £74,000 (source: Checkatrade).
We hope we’ve provided some answers to the popular question, ‘is buying a new build home a good investment?’ and help you decide whether a new build property is for you.
Remember, you can view our latest developments plus the homes we currently have for sale here.