Investing in a new build property: What are the advantages? - Ward Homes Yorkshire

Investing in a new build property: What are the advantages?


Investing in a new build property: What are the advantages? 1

Investing in property has long been considered a financial strategy that offers good returns, whether that’s as an appreciating asset or as a buy-to-let.
The common belief is that older properties will yield the greatest gains, but if you’re wondering if new build homes are a good investment, you may be surprised to find out the answer is, most definitely, yes.
Increasingly, investors are looking towards new build homes for high returns and attractive rental opportunities. So, if you’re considering a move, about to get on the property ladder or looking for an additional source of income, new build properties should be part of your searching strategy.
Here we look at the reasons why a new build home could make a sound investment for the future.

1. There’s a growing demand

Demand for housing has led to fierce competition in the property market. Buyers are often priced out or forced to lower expectations to meet tight budgets. With new-build homes, however, there’s much more choice and availability.
In addition, new homes are built to match the demands of the modern consumer: they’re bright and airy and designed with modern living in mind, with the latest features and amenities. This makes them an attractive option for both house-hunters and tenants.

2. You can expect high rental returns

New-build properties can often command higher rental rates than older homes. Factors like contemporary design, modern appliances and energy-efficient features are very attractive to tenants and something they’re willing to pay a premium for.
Rising interest rates and the stamp duty surcharge mean that costs for landlords have increased. With a new-build property, you’re less likely to be faced with expensive maintenance and repairs, optimising your rental income. This is also appealing to tenants who’ll feel more assured that they won’t have to deal with issues such as leaks, central heating failures and damp.

3. They offer long-term investment security

High-quality property developers, such as Ward Homes Yorkshire offer security in terms of both building standards and customer service. This means less risk for you as an investor and reduces the potential for things going wrong in the buying process.
You’ll also benefit from the security of a warranty on certain fixtures and fittings, something you wouldn’t get if you purchased an older property.

4. Lower outgoings maximise ROI

New build homes are subject to the latest energy-efficiency standards, meaning you’ll spend less on your energy bills and won’t have to invest in any additional measures yourself. A 2022 report by the Home Builders Foundation found that new build owners save an average of £555 and around 2.38 tonnes of carbon emissions per year, compared with older homes.
You also won’t need to spend any money on renovations or remedial work, as is likely with an older home. In addition, as new builds adhere to the latest building codes and are covered by a 10-year warranty, you’re much less likely to face any major repair costs.

5. There’s potential for appreciation

Appreciation on new properties tends to build over time. So, as long as you plan to keep your home for a good few years, you could enjoy a solid return on your investment when you choose to sell.
However, it’s important to pick your location carefully. Buying in an area with strong rental demand, good transport links, access to a wide range of amenities, open spaces and entertainment will ensure your property remains an attractive prospect to buyers.
Do your research and think about factors that attract buyers to a particular area. Spotting the potential of an up-and-coming location can also reap rewards.

6. You can take advantage of incentives

At a time when mortgage rates are soaring, you can take advantage of the financial help which tends to be exclusively for new-build homes, such as the government’s First Homes scheme. After all, every little helps.

A rising population and growing demand for housing means that interest in new build homes is huge, particularly thanks to their modern features, energy efficiency and contemporary amenities.
As with any investment, however, it’s essential to do your research. When shortlisting properties, think about their potential for high ROI and/or rental income. Considering the factors that will influence tenants or future buyers will help ensure you’re maximising your returns and making a sound investment for the future.