The Hidden Costs of Buying a New Build Home

Don’t forget these costs when buying a new build property

You may want to buy a new build for the reason that ‘everything is done’ and there will be little maintenance costs. A brand new blank canvas, a house that only you have lived in. Yes, everything will be brand new and maintenance should be minimal, but there are some hidden costs to consider before you decide a new build is the right buy for you.

1. New Home Premium

The first thing to note is that if you opt for a new build home you will likely pay a higher price than a similar-sized property that has been lived in. This is known as a new build premium.

2. Hidden Defects

Just because something is new, doesn’t mean there won’t be repairs. Buying a new build does not mean you will be without leaks, cracks and issues with wiring. You can get a snagging survey on the property before you move in. This will identify cosmetic and structural issues with your new build home.

Top Tip: New build homes come with a warranty, but always read this carefully as different parts of the home may come with different lengths of warranty.

3. Pricey Upgrades

It’s lovely to sit down and choose your brand new kitchen and bathroom for your home, but often builders will offer a basic standard that is included in the price, with the option to upgrade. The show homes will have the most expensive accessories, but your home won’t necessarily have the same. These upgrades can be pricey and it is vital that you know your budget before looking at these options so as not to get carried away and opt for something out of budget.

4. What isn’t included

One of the main things that new build homes don’t come with is often landscaping. Other interior essentials can include, carpets and even fires and other appliances. Always check with the builder what’s included in the price and make sure you factor in the costs of missing necessities into your overall budget. Sometimes it’s possible to negotiate the inclusion of these things in the sale.

5. Mortgages

Mortgage lenders can be more strict on lending on new build properties and some limit the amount they will lend on new build homes. This is to account for any depreciation in the first few years and the increased risk of the homeowner falling into negative equity.

6. Delays

New build developers will give you an approximate completion date for your home, but as the home is getting built this can often get delayed. This may mean you have to move out of your existing home and rent for a period or put your furniture into storage, so extra costs like this should be factored in.

7. Homeowner fees

Some new build communities have annual fees that are payable. Always ask the builder about these before purchase. Newly constructed properties tend to be leasehold properties and will incur annual fees.

8. Further building

When moving onto a new build estate you have to bear in mind that there is likely to be further building works, including noise before the estate is completed. Always ask the builder for an estimate on the completion of works around your property and be prepared to put up with any inconvenience or noise, or it may be quite costly for you in terms of another move further down the line.

9. Storage and extensions

New build homes are often smaller in size and come with smaller spaces, with less storage. Lack of cupboard space could mean you have to buy additional furniture or even have the extra expense of an extension further down the line, which can cost tens of thousands of pounds. When viewing a new build property always pay attention to furniture and the amount of storage.

Are newbuilds overpriced?

New builds often come with a price premium and it’s important to remember that they don’t come without hidden costs, as we have explored in this blog. However, there are many benefits, such as ongoing maintenance being lower, appliances being all brand new, with walls being freshly plastered so decorating looks crisp. New builds are often a lot more energy efficient so could actually save you money in terms of energy costs. It ultimately comes down to personal choice and what type of home you can see yourself living in.

For More Information About Buying a Home

For more information about buying a home, browse our selection of articles today. If you are in the process of buying a home, check out our step-by-step guide to buying a house. If you have any further questions about the process or cost of homes, don’t hesitate to get in touch with Propertyable.