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Property in 2023: What is a New-build property?

April 19, 2023

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Article Summary

Buy-to-let
  • New-build properties are built to high standards and come with modern amenities, such as energy-efficient heating and cooling systems, smart home technology, and state-of-the-art security systems.

  • New-build properties also tend to be more energy-efficient and eco-friendly than completed properties. This is because they are built to modern standards, which often require developers to incorporate sustainable building materials.

  • Completed properties, on the other hand, may require more maintenance and repairs due to the wear and tear caused by previous owners.

When it comes to property investment, one of the key decisions that investors face is whether to invest in a new-build property or a completed one. Both options have their advantages and disadvantages, but in 2023, new-build properties seem to be the preferred choice for investors looking to make a positive investment.

New-build Advantages

New-build properties are those that have been recently constructed or are currently under construction. Completed properties, on the other hand, are properties that have already been built and are available for purchase or rent. So, what are the key differences between the two from a property investment perspective, and why might investors prefer new-build properties?

Firstly, new-build properties tend to offer a range of benefits that completed properties do not. For example, new-build properties are often built to high standards and come with modern amenities, such as energy-efficient heating and cooling systems, smart home technology, and state-of-the-art security systems. This can make them more attractive to tenants and potential buyers, which can help to increase their rental yields and capital growth potential.

New-build properties also tend to be more energy-efficient and eco-friendly than completed properties. This is because they are built to modern standards, which often require developers to incorporate sustainable building materials and practices into their designs. As a result, new-build properties tend to have lower energy bills, which can make them more affordable for tenants and more attractive to investors.

Another benefit of investing in a new-build property is that investors can often customize them to their own preferences. This means that investors can choose the layout, design, and features of their property, which can help them to attract tenants and achieve higher rental yields. Additionally, new-build properties often come with warranties and guarantees, which can provide investors with peace of mind and protect them from unexpected repairs and maintenance costs.

Challenges of New-build

Of course, new-build properties also have their disadvantages. They tend to be more expensive than completed properties, and they can take longer to generate a return on investment. Additionally, new-build properties may be located in areas that are still developing, which can make them more risky investments.

Despite this, properties that are part of regenerations often come across as fantastic investment opportunities, as these projects are often based in cities which require more housing supply as the demand for property rises exponentially.

Completed properties, on the other hand, are often more affordable and can generate returns more quickly. However, they may require more maintenance and repairs due to the wear and tear caused by previous owners and years of being in use. They also may not have the same level of amenities and energy efficiency as new-build properties.

Conclusion

Overall, both new-build and completed properties can be good investment options, depending on the investor’s goals and preferences. However, in 2023, new-build properties seem to be the preferred choice for investors looking to make a positive property investment. With their modern amenities, energy efficiency, and customization options, new-build properties offer a range of benefits that can help investors achieve higher rental yields and capital growth potential.

To learn about the property investment opportunities above, or to find out more about how property investment works, get in touch with the experts at North Property Group today.

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