The Pros and Cons of Buying Development Property
Are you considering purchasing a property for sale in a development? While it’s an extremely popular choice for buyers these days, it’s important to factor in both the pros and cons of doing so. From the financials, to the maintenance, security and final product, here is all the important information you need to consider before making up your mind.
With more buyers entering the market and a scarcity of existing housing stock in many areas, developers are moving to fill the gaps in the market. More and more buyers have shown a preference for these development properties and this trend looks set to continue.
But as with any property investment, there are pros and cons to choosing a development property.
The pros:
Financial – Purchasing a development property requires less upfront costs. You avoid paying transfer duty, VAT is included in the price and transaction costs are paid by the developer. While there is an initial 10% deposit, the rest of the payment is only due on completion.
Maintenance – A newly built property should require no or very little maintenance within the first few years. No hidden faults should appear as everything is brand new, so you can enjoy your new home instead of spending time and money fixing unexpected problems.
Security – A unique selling point for new developments is the controlled access, security guards and high walls on offer. Residents can let their kids outside to play without worrying about them.
The Cons:
Finished property may be different – Buyers are usually shown a visual mockup of what the property will look like once complete, but the finished product can end up looking slightly different in terms of both structure and finishes. To avoid this you have to make sure that your contract specifies what the layout will look like and what fixtures and fittings you will get.
Unsavoury developers – Do your research before choosing the first developer that catches your eye. Find out the developer’s track record, past projects and even client testimonials. Choosing a developer that does not have sound practises could lead to a badly developed and built property fraught with issues.
If you do decide to purchase a property for sale in a development remember two important things. One, buy early. Developers often offer cheaper prices when the development first begins. Second, the earlier you look at a development, the more properties there will be available to choose from.
