8 Advantages of New Builds
If you are considering investing in property, you need to be aware of some of the important ways in which new build properties give you a clear advantage over existing properties.
As soon as a property is older than 6 months and/or sold many of these advantages are either lost or diminished.
Lower Deposit Requirement
Just 20% instead of 30% (or more) when buying existing homes – meaning a much better use of capital and lower barrier to entry.
Higher Return on Investment
Due to the lower upfront deposit, there is a higher Return on Investment (ROI) on the same value property.
Easier Access to Lending
New build homes are exempt from the debt-to-income (DTI) ratio regime – which allows you to maximise the power of leverage.
Premium Product
Built to a high standard, you own a brand-new premium asset. Quality assets appreciate in value.
Warrantees and Building Guarantees
12-month warranty on building work, all the factory warranties of the chattels and a 10-year structural guarantee.
Zero/Minimal Capital Maintenance
Brand new homes have very little maintenance costs. Low-stress investing.
Energy Efficiency
Built in excess of the latest building code means lower energy bills for tenants – a clear advantage when competing for tenants.
More Desirable for Tenants
Brand-new, high-quality homes tend to attract a higher quality tenant – Quality tenants look after your investment.