A New Build Home
Two of the main attractions to a buyer of purchasing a new build home are that everything is brand new and no one else has ever lived there.
Whilst there is a certain attraction to having a brand new property, it does come at quite a price.
If you are planning on buying a new build home, you will have to pay a premium to do so.
Buy New, Pay More
Property developers take on various risks when building new housing estates as the design, development and marketing of properties can be hugely costly and risky.
In order to recoup their initial investment they are likely charge higher market prices to those looking to purchase a new build home.
This means that the first occupant of a new build property will effectively subsidise future owners who they sell to.
The Property Ladder Myth
Many years of TV property shows may have programmed the public into the rather simplistic and largely flawed view that the successful property investor is like a shark, in that if they stop moving, they die.
The reality is quite different; we are no longer in a fast moving property market where a housing boom meant that a smart investor could make a lot of money for doing very little.
Instead we exist in a market that has stagnated for half a decade and one which is likely to face an artificial boom imminently.
Value Under Your Feet
Moving tends to be a costly experience and not likely to be rewarded any time soon by double digit house price rises. If a boom does occur, possibly due to the Help To Buy Scheme, it could leave you with all manner of problems once the bubble bursts.
Instead, it’s worth recognising that your financial future may be more secure by staying where you are. Simply trying to move up the property ladder irrespective of market conditions can be a result of reckless money management. Financial advisors often agree that, in uncertain times, it can be better to stick with an asset you know to be reliable.
Adding value to your current home and gradually watching its value increase is not only financially rewarding, but it is part of the fun and enjoyment of owning a new property.