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;
- Cleanliness; people like brand new as they don’t want to share others "dirt"
- The ability to have input into the design to suit the families’ lifestyle
- To have a healthier home, better insulation, dryer and warmer
- To get the latest features eg sculleries, walk in wardrobes, underfloor heating
- 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;
- 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.
- There are few if any maintenance costs for at least the first five to ten years so a big saving on cash flow
- 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
- 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
- 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.
- 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.