Depending on your investment aspirations, as a landlord considering increasing your portfolio you’re presented with a wide range of options.
For example, should you buy in a location which is already known to you, or maybe select somewhere less familiar, but offers the prospect for improved yields or superior capital growth. Meanwhile, is it better to invest in family homes which could secure longer tenancies, or an apartment which could suit couples and command a higher average rent per bedroom.
However, there is one property type that’s favoured by many landlords looking to invest – and that is to buy new.
We’ve looked at the range of benefits buying a new-build property can bring:
When buying a property directly from the builder there’s no chain to depend on which ensures confidence in the completion date. This often allows the property to be marketed for rent in advance.
Ready to move into
In most cases, as soon as a landlord completes the purchase of a new home, it should be ready to move new tenants into. Whilst some may want to landscape the garden, or lay new flooring – because every room will have been freshly decorated and there’s no furniture to work around, its likely such jobs will be easy to arrange.
The appliances within newly built homes come with warranties and guarantees – meaning if there are issues with anything from the boiler to the oven, the shower or the fridge, these can be fixed at no cost to the landlord.
Adherence to Minimum Energy Efficiency Standards
From April 2018, new tenancies can only be offered on homes with a minimum energy efficiency rating of E. However, most new homes in the UK are built to far higher energy efficiency standards than older homes, meaning there will be no improvements necessary.
In some cases, the appeal of a brand-new home mean that tenants are willing to pay more rent. Much like landlords, tenants also welcome the guarantees on appliances, together with fitted kitchens and new bathrooms.
Many developers are often keen to sell properties to investors – landlords are usually experienced buyers, without a property to sell. Such buyers are attractive, particularly when the developer is nearing the end of a site, and has a couple of stock plots to sell. Therefore, it’s no surprise that in some cases they may offer a financial incentive, flooring or even furniture packs to secure a sale.
Almost 80% of newly-built homes come with an NHBC Warranty. This not only ensures the property has been built to a specific set of standards, but it also provides crucial insurance for physical damage and any breaches of the building control.
When you’re next thinking of expanding your portfolio, speak to our Land and New Homes Team – we work with house builders up and down the UK and can help you secure a great investment.