Investing in a new build buy-to-let property
Buying a property as an investment can be a rewarding personal and financial decision, whether it’s a one off, the beginning of a property portfolio, or a new addition. Choosing a new build property can be particularly appealing due to the low maintenance costs, greater energy efficiency and the fact that they are ready to move into.
Whether your main priority is capital appreciation over time or monthly rental income from a buy-to-let property, starting a property portfolio is an exciting step up the property ladder that requires a clear budget and a well-informed plan. Here are some points to consider when buying property as an investor.
When buying a property primarily as an investment, opting for a new build can bring greater financial reward, particularly in the first few years of ownership. Being brand new properties with no prior residents, fewer maintenance costs are expected, meaning higher profitability both in the long and short term.
It’s important to note that the quality of the build and its finishes and appliances should also be considered, as the higher the standard in the beginning, the more likely they are to last.
Energy-efficient properties are easier on the pocket and on the environment, requiring less extra spending on features like new boilers and double glazing, making them an attractive investment. With younger generations placing sustainability as a top priority rather than a nice-to-have, energy efficient real estate is seeing increasing demand from both buyers and renters, and should therefore be a priority to property investors, too.
New builds are typically within the top energy-efficiency rating and can therefore offer better potential for investors than existing properties.
Location is one of the most important factors to consider when buying a property as an investment, whether you’re looking to make a decent profit by selling down the track, or a strong monthly rental income from a buy-to-let investment.
With more and more people working from home, there is greater priority being placed on community, green space and being close to a good range of cafes, shops and restaurants. Areas that were once considered too far from the centre of a city have increasing appeal and could offer greater return to investors, while neighbourhoods that already have a renowned post code could have passed their most profitable window.
Getting into a bidding war can push the price of your property investment up, costing you more than you intended. Purchasing directly from a developer allows you to be sure of your budget and stay on track with your investment plan. Also, it often allows you to transact outside of the ‘property chain’, which means you won’t be reliant on an individual seller to get their own affairs in order, which can lead to a deal falling through.
As a result, purchasing a new build through a developer can dramatically speed up the buying
process, and as time is money, this can be an attractive option for investors.
Looking to purchase a new build as an investment?
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