Buying a property in a new building – advantages and disadvantages
More and more people are choosing to buy a flat in a ‘greenfield’ – a house that has not yet been built. Buying greenfield can be a very profitable investment, but it can also be a serious mistake. You need to be careful because you could end up in a situation where you lose the money you have invested.
When buying a property in a new-build development, you should be familiar with the risks and know what to look out for when buying a flat under construction.
Advantages of buying a property in a new building
Each type of construction has its own advantages and disadvantages, but the pros of new-build property outweigh them. They are important both when buying and selling a new-build flat.
If you choose a property that has not yet been built, you will have a much better chance of buying the perfect home for you at a bargain price. These are the main advantages of buying a flat in a new building:
1. Low price
Undoubtedly, it is possible to define objects that are sold ‘green’ as more profitable than others offered on the property market. Such projects have a lower price, primarily due to their incompleteness – the buyer does not purchase an object ready for occupancy, but has to wait for the designated construction period.
In addition, when buying a flat from the developer payment is made in stages – at the time of signing the contract is made only part of the amount, which greatly eases your budget.
But do not overlook the fact that when the building receives Act 14, 15 or 16, the property may significantly increase in value.
2. Possibility to choose
You will have a choice of several properties in the same building to purchase the property that best suits your requirements. In most cases, you can choose the floor, area, exposure and other characteristics of the flat that are important to you, as well as follow the construction process – see what materials are used and the quality of workmanship.
3. Possibility of reconstruction and finishing works
If you buy a pre-completion flat at the rough-in stage, you can make changes to the design of your new home – combine some rooms or separate another room by building additional walls. In addition, you have the opportunity to agree with the developer all the additional finishing elements necessary to make you feel comfortable in your new home.
Disadvantages of buying a property in a new building
However, buying a flat on the ‘green field’ has some pitfalls associated with the fact that the property does not yet exist as an object of independent construction:
1. Impossibility of real inspection of the object
If you are targeting a new-build property, then logically you can’t do a real viewing. The only chance to imagine the future object is to familiarise yourself with the architectural sketches. Unfortunately, only those with a great imagination will be able to imagine it. At the same time, what is promised to you may differ significantly from the actual execution.
2. Failure to relocate immediately
If you buy a property on a green field, you will have to wait for the construction to be completed. Although you have already paid part of the price for your new home, you will not actually be able to use it. You need to allow for the cost of renting another home while you wait for construction to be completed.
3. Risk of losses and delays
The biggest disadvantage of buying a flat in a new building is that there can be all sorts of problems that can cause you not to get a home and lose all the money you have already invested in it.
The construction process can be delayed for a number of reasons such as bad weather, possible funding problems or disputes between the builder and the contractor. Such factors can also interfere with your plans and sentiments. Many people are left in uncertainty with an unfinished home, which often turns out to be their only home. In such a situation, you may find it difficult to find another home to rent out while you wait for construction to be completed.
In conclusion, buying a flat ‘from scratch’ is a complicated process, and we really hope that our recommendations will help you overcome the risks and rewards if you find yourself facing such a choice. To be sure of the investor who will build your future property, it is recommended to trust a broker who has extensive experience in sales of new buildings.
