new build garden

Is A New Build Home A Good Investment?

Whether you’re looking to move into a new property soon or are searching for properties to purchase and rent out, you may be wondering, ‘is a new build home a good investment?’ The answer to this question will depend on a multitude of factors, ranging from your personal situation, financial goals and plan for the coming years to the size, layout, and quality of the new build house, as well as its location. All of these factors are important to consider when assessing whether or not purchasing a new build home to either live in or rent out is the right next step for you. This means that deciding what kind of property to go for can become very overwhelming, requiring many hours of research, reflection, discussions and stress.

To help you out, the Clarkson Builders team have put together this comprehensive guide exploring the ins and outs of investing in a new build home, whether your plan is to live in it and sell it in the future for as much as possible or to start renting it out as soon as you acquire it. We will cover what you can expect from a new build home, as well as all of the important factors that will determine whether or not purchasing one is a good move according to your individual goals. We hope that this will answer any nagging questions that you may have and give you a good head start in your research with minimal stress.

Is A New Build Home A Good Investment? A Clarkson Builders Guide

As fully qualified, professional builders in Olney and the surrounding areas, the team at Clarkson Builders have many years of experience in helping clients turn their dream home into a reality, whether it be through constructing a new build or renovating an older property. This experience has equipped us with all of the knowledge, skills and training required to advise our clients on the kind of property that would suit their practical, financial and aesthetic needs and goals. We have used this specialised knowledge to compile this article, which we hope will equip you with all of the information that you need to know in order to start forming an idea of whether or not investing in a new build property is the best move for you specifically. In this article, we will cover the following questions:

New Build Foundations

Clarkson Builders ProjectTwo Bedroom New Build

What Is A New Build Home?

To make things as straightforwards as possible, we thought we would begin our guide by first establishing the answer to the question ‘what is a new build home?’. Put simply, a new build home is a home that was recently constructed and is yet to be inhabited. New build homes can be planned and designed by a specific client right from the beginning of the project, but they can also be purchased part-way through construction or after the home has been fully constructed and fitted with lighting, heating, plumbing and electrical wiring. Because they are entirely uninhabited prior to the new owner moving in, new builds tend to be in excellent condition and require little maintenance work for the first few years, making them a hassle-free investment option for prospective passive investors.

New Build Unfinished Interior

Clarkson Builders ProjectTwo Bedroom New Build

What Is Included In A New Build Home?

When you purchase a new build home, there are a few conditions that you can and should expect it to meet in terms of the facilities and measures that it is equipped with. These include the following:

  • Plastered and painted walls
  • Electrical installations that pass an EICR
  • Plumbing and drainage system
  • Flooring and tiling
  • Fitted furniture

It is not uncommon for new builds to contain small issues known as ‘snags’, which may include damaged, broken or incomplete work. It is advised that you compile a snagging list documenting any defects that you find in order to have the issues amended quickly. To avoid the headache of resolving snags, we recommend ensuring that your new build is constructed by reputable tradespeople.

Our builders in Towcester and the surrounding areas are members of the Federation Of Master Builders, so you can be sure that we will go above and beyond to ensure that all work we complete is not only up to standard, but of the highest quality possible. Why not give us a call to speak to one of our friendly team members and find out more?

Clarkson Vans Outside New Build

Clarkson Builders ProjectTwo Bedroom New Build

How Much Is A New Build Home?

According to Checkatrade, the cost of a new build home, as determined by the number of bedrooms it has, will be as follows:

  • Three-bedroom – £130,000 – £300,000
  • Four-bedroom – £200,000 – £500,000
  • Five-bedroom – £280,000 – £600,000

One thing to note about investing in a new build home is that upfront costs may be higher than that of a previously-occupied home; there is usually a premium associated with purchasing a new build home due to the fact that they are typically in very good condition with little to no required maintenance when they are put on the market.

Once you have lived in your property or rented it out to tenants, it will lose its new build status, meaning that you will not be able to sell it on with the same premium attached, even if you do not live there for long. Since this causes you to lose some of the original value of the home, a new build home should usually be a long-term investment.

However, in a select few areas across the UK, new build properties actually cost less than older ones. In this instance, you will not have to worry about losing a large associated premium.

Completed New Build

Clarkson Builders ProjectTwo Bedroom New Build

How Long Do New Homes Take To Build?

Naturally, new build homes are big projects since they are built completely from scratch. This means that they will take a long time to build. The exact amount of time that a house takes to be built will depend on several factors, such as who is designing it, the size and complexity of the build, and any issues encountered during the process of building the house. If you are looking to be involved in the planning and design process, you can expect the build to take at least a year to complete from start to finish, while a ‘spec’ house, meaning a house that is built upon speculations of what buyers are after, will likely take less time.

Investing early on in building a house will enable you to design its layout and have more control over its functionality and appearance. This may be preferable if you are an experienced landlord with a good idea of what renters are looking for in a property. Or if you intend to live in it yourself and have specific preferences that you would like the house to be built around, especially if you believe that these will suit the desires of buyers in the future when you intend to sell. While this option is more costly and time-consuming, if your design proves to be desirable, then it will be a worthwhile investment in the long run.

New Build Scaffolding

Clarkson Builders ProjectStone New Build

Can You Extend A New Build Home?

One of the easiest ways to make money through investing in a property is to renovate it and sell it for more than you paid to purchase and renovate it. Extending your home is an excellent way to add value to it through renovations, and can make your home more appealing to buyers. Therefore, not only can you usually extend a new build home, but it may even be advisable to do so.

This is a good option for those looking to buy a speculatively built new build, which they did not have a hand in designing and would like to improve. However, one thing to keep in mind is that the house may have been built to be as large and modern as possible by the original contractors, so opportunities to extend and renovate it may not be present, at least in the near future. Moreover, the property may come with a ceiling price, limiting how much value you can actually add to your property through renovations.

New Build Window Installation

Clarkson Builders ProjectStone New Build

Is It Better To Buy A New Build Home?

So, all things considered, is it better to buy a new build home, or would it be preferable to purchase an older property and renovate it? There is no one-size-fits-all answer to this question. Still, given everything covered above, we think that it is safe to say that a new build home can certainly be a good investment, especially under any of the following circumstances:

  • New builds are cheaper than other properties in your chosen area
  • You intend for the new build to be a long-term investment
  • The new build is likely to be appealing to buyers – or made appealing through renovations – at the time that you plan to sell or rent it out
  • The tradespeople constructing your new build are reputable, helping you to avoid snags and amend any that do occur
  • You are looking for a hassle-free investment property that does not require expensive and time-consuming maintenance

Completed Stone New Build

Clarkson Builders ProjectStone New Build

Should I Invest In A New Build Home?

The decision to invest in any home, new build or existing, is a big one, meaning that it is important to inform yourself of the risks, benefits, and potential rewards of doing so. We hope that our article has answered some of the questions that you may have surrounding investing in new build properties and has brought you a few steps closer to making a decision.

Whether you decide that you would like to invest in a new build property or opt to find a house that you can put through renovations in Milton Keynes, the Clarkson Builders team are willing and more than able to help. With years of experience and an advanced level of knowledge and skill, our builders will be able to help you ensure that your property is planned, designed and built with your practical, financial and aesthetic goals in mind. To find out more, please feel free to get in touch with us today.