New build turnkey houses are very popular among first-time buyers. They save a lot of time and complications, as you don’t need to wait until the previous owners have found a new home before moving in and there is something about moving into a brand new property that you can totally make your own that is very appealing. As with anything though there are some things you will need to consider before making your mind up.
A New Build May Be A No-No
You may have your heart set on buying a new build property with all brand spanking new fixtures and spaces for you to make completely your own. This isn’t always possible for first-time buyers though as a lot of lenders are wary of new build developments falling through and so they will ask for a larger deposit, usually 15-20%. This is simply too much for a lot of first-time buyers who are then forced to abandon their turnkey plans.
There are some lenders who will accept 10% deposits for new builds but you may end up getting a less generous rate from them. My advice would be to consult a mortgage advisor before you make an offer on any new development.
Make Sure The Developers Are Reputable
When buying a new build you are at the mercy of the developers to a large extent. If they are delayed in their building or go bust midway through then it can leave you in an untenable situation. Most lenders will offer the mortgage loan for 6 months and so if the building is delayed longer than you have foreseen and this 6 months lapses then they may not release the funds and you will have to go through the whole application process again.
That’s why it is vital that you ensure that your developers are trustworthy and that they have a good track record of building on time and to a high standard. Visit their website to find examples of their past developments and contact estate agents who have worked with them to get a better understanding of their professionalism and standards.
Learn To Be Decisive
You may be thinking that buying a turnkey property will limit the number of decisions you will have to make on the décor and style of your home, however, it can actually lead to more decision making. When you buy a new build the developer will usually give you a few options for things like kitchen tiles, cabinets, worktops, fireplaces, carpets, hall tiles, bathroom tiles etc.
All these decisions add up and then you have the added extras. You will often be able to make some upgrades such as an improved oven, fireplace and lighting. Then you will have a meeting with the developer to decide where you want everything to be in the house, plug outlets, lights, TV points etc. All of this decision-making can be daunting for anyone nevermind first time buyers who have to make important décor decisions based on a house that they can only picture in their heads from plans and brochures that they have seen.
To get through this process with your sanity intact it’s important that you are able to make decisions in good time and for the most part don’t go back on them. Changing your mind about one or two things you have picked and letting the developer know in good time won’t be a major problem but for the most part, you will need to choose what you want under pressure and stick with that decision, at least until you move in.
All in all, buying a new build property should be an enjoyable and exciting experience for first-time buyers but just keep these considerations in mind before you take the plunge.