I spoke to someone this week who said a new build property would suit them as it would be “maintenance free”. Whilst this isn’t strictly true as there will invariably be some level of ‘snagging’, a new build will typically have fewer issues than an older property and will come with various warranties.
As he was adamant he only wanted to buy a new build property, we
discussed how he might best go about doing this to minimise the premium he
might pay versus a comparable second-hand property. Here are four of the ways I
came up with to extract the best deal possible when purchasing a new build property.
Developers normally sell their showhome(s) to investors and lease them
back. They normally do so at a discounted price or by enhancing the property
with additional fixtures and fittings. They then pay to use the property for
the duration of the development, offering an excellent rate of return (around
6%) without you having to worry about maintaining the property nor managing any
tenants! At the end of the term the property will come back in an ‘as-new’
condition and you can either let it out, sell it or move into it.
2. Buy early
Builders need cashflow at the start of a development to commence
building works. As a result, the first phase of properties tend to offer the
best value, often being released before building has started. Buying ‘off-plan’
like this can require some imagination and trust that the builder will deliver
(hence the often discounted prices).
3. Buy late
When a development is nearly sold out there will often be a deal to be
done on the “last few plots remaining”. At this point the developer wants to
move on to their new site and the existence of a sales office and showhome(s)
can become a costly expense when there are only a few homes for sale.
4. Buy at the right
time of year
There are actually two elements to this suggestion: buy when the market
is quieter (e.g. the depths of Winter) and consider the timing of the developers’
financial year. Many developers use April or June as their ‘year-end’ and set
sales targets against these deadlines (and six months before at the ‘half-year’
stage).
Here in Chichester, I know that Canal Walk is down to just its last
three plots (all four-bed houses) and that their half-year period is coming up.
With two of the four potential reasons for a discount, it could be a good time
for those looking for a large family home to see what’s on offer.
If you’d like to discuss your options when buying a property, please get
in touch and I’ll be happy to offer you a free consultation.
(This article was featured in the Chichester Observer's property section
on 19th November 2015).
Clive Janes, CRJ Lettings.
www.crjlettings.co.uk
___________________________________
If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
__________________________________
No comments:
Post a Comment