Finally found your dream home and it’s a new build property? Congratulations! You have found the property you’ll one day call home, but there are a few things you should know before you sign the dotted line…
There are several benefits of purchasing a newly constructed property making it a favoured option with many. There’s a shortage of new homes available, so its important to take advantage where you can. But first, are you completely prepared to purchase your newly built property?
When you buy a new property, the deal is usually done with the developer directly. So, it is important to know the questions you need to ask. Here is a checklist of points to consider –
- Research the reputation of the developers and the portfolio of sites they’ve completed. Their current completed projects will tell you a lot about the quality of construction, support and experience of the builders. Try to visit them while the house is in-progress as well as check completed projects.
- When visiting the property, walk around the neighbourhood. Talk to who you can about the area, inspect how well maintained it is, check local amenities, etc. Property is an investment, and you will always want its value to appreciate. These factors will have an effect on the value of the property.
- Don’t calculate your budget simply based upon the cost the developers tells you. Don’t overlook extra costs like insurance, property tax, paper work costs, furniture, utility connections and more. Estimate these costs and then calculate the total cost of the property. Based on your income, credit score and current debt, decide on whether you can afford that property or not. You may want to check if you have any ground rent or service charges to pay if it’s an apartment.
- If you are planning to take a mortgage out for the property, avoid using the lender recommended by the developer. Shop around for the best interest rates and payment terms. A mortgage broker can help you find deals you may not have known about otherwise.
- Enquire about the warranties provided by the developer. Get clear answers for warranty on workmanship, mechanical and plumbing, electrical fittings and more. Also, get a clear idea of responsibilities – what will you be responsible for and what will the builders/developers be responsible for.
- If you are making any additions to the home, know what is covered as standard and what is extra. Don’t hesitate to ask any questions, get all your doubts cleared ahead of time.
Finally, always trust your instincts. If you feel the developer is unnecessarily rushing to sell the property or acting strange, it could be a matter of concern. Research all aspects of the property before making a decision. Don’t sign off anything until you have understood it properly. Get in touch with us today if you’d like any help or advice on buying a new build property.