New build .v. buying existing...

21 Oct 2014

The question of “why should we build” as opposed to buying existing can be broken into two categories, emotional and economic;

Emotional reasons are varied and will be slightly different from family to family but interestingly enough the reasons in order of priority based on a recent survey are as follows;
  1. Cleanliness; people like brand new as they don’t want to share others "dirt"
  2. The ability to have input into the design to suit the families’ lifestyle
  3. To have a healthier home, better insulation, dryer and warmer
  4. To get the latest features eg sculleries, walk in wardrobes, underfloor heating
  5. To be part of a new community, being around like minded people
Economic reasons are equally important but often not realised, they are in no particular order;
  1. Capital gain is achieved in most circumstances as soon as the house is complete; this is because the land is worth more once it has a home on it as it is now an income producing entity. Bare land has ongoing costs with no income. The price you pay for the build is a wholesale price, but once complete it becomes a retail product so is worth more.
  2. There are few if any maintenance costs for at least the first five to ten years so a big saving on cash flow
  3. If building in a new or emerging area you have the benefit of increased commercial infrastructure, eg shopping centres, supermarkets and schools; this has the collective effect of increasing capital gain at a faster rate
  4. New homes have the latest fixtures and features and these become the norm pretty quickly so you maximise sale price when you eventually choose to sell
  5. Double glazing is possibly the single most important feature of a new home as it not only maintains a more constant temperature so saves money re heating costs but it also acts as a significant sound reducer which is important with smaller sections.
  6. New homes will be seen as a safer financial option than the homes built during the leaky building era so again capital gain will be superior

If you are looking to build give us a call and lets make sure this is the best option for you.