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According to studies, approximately 44% of American home buyers used the internet to find potential properties.
You’re considering buying a new property, but you’re not sure if it’s the right decision.
Making a big purchase like this is a huge decision and one that should not be taken lightly. But don’t worry. Keep reading for seven factors every investor should consider before making any decisions.
By reading this article, you’ll have a better understanding of what to look for and what to avoid when buying property. Keep reading below to learn more.
- Location & Strategic Partnerships
Companies such as Redrow PLC (LSE: RDW) are successful for a reason. It’s because of their sound judgment on which locations have what it takes to become epicenters for future development.
Using its well-developed research division, the company studies the latest trends in the housing market and seeks out opportunities to create new residential homes that meet high demand.
- Incentive Scheme
Are you a business-minded investor who is willing to look past your property’s initial purchase price? If so, buying a newly built home might be right for you.
Not only do most companies offer attractive schemes such as double stamp duty relief on newly completed properties but many will also pay stamp duty of up to £5,000 or offer a first-year tax-free rental income.
- Boost Your Rental Yields
An incentive for people investing in new homes is that they are exempt from inheritance tax if it’s their primary residence. Although an attractive option, it only makes sense if you’re going to live in the property for at least ten years.
You will also need to and can prove long-term ownership through legal documentation. However, even with all these benefits, we recommend that investors should always be aware of what’s going on around them.
- Mortgages
If you’re a savvy property investor, your chances of getting hold of a mortgage for an initial purchase are relatively good. This is the case even in the current economic climate.
However, if you would like to secure a loan to buy new-build properties on top of that, it may be more difficult to get approved which means you might have to save up some serious money before beginning any investment.
- Building Quality & Local Authority Control
New homes are often of better quality than resale ones. This is because they are built with the knowledge that buyers will be looking at them very closely before committing to buy.
A new development by a well-known property developer isn’t likely to have problems of structural integrity or insufficient insulation, unlike some resale properties which can sometimes be of lower quality.
- House Price Growth
Some property experts argue that buying a new build home is the best way to invest in property because supply is limited and demand is high. This can lead to steady house price growth.
- Location, Location, Location
Your location can play a crucial role in whether you make money from buying an investment property. It could also see you lose it all due to pocket-emptying repair bills!
Commercial areas are usually under more pressure than residential areas because buyers often overlook these properties in favor of high-quality family homes within walking distance of schools and shopping centers.
Want to know how to manage multiple properties? Check out this article.
Invest in New Property Today
Investors should carefully consider all of the factors we’ve outlined before making such an important purchase. That’s why we put together this list of seven factors investors should always consider before buying a new property.
Want more articles like this? Check out our blog!
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