As a landlord, you may have considered investing in a new-build property at some point. With a host of developments in and around Camberley, there are good options for investors currently.
With Chancellor Philip Hammond revealing in his autumn Budget that a cool £500 million had been ringfenced in the Housing Infrastructure Fund for new homes, it's likely a few more opportunities for potential investment may crop up in the coming years.
According to the Chancellor, this pot of cash could pave the way for around 650,000 new homes. Moreover, he also revealed a whopping £1.5 billion would be given over to boosting the UK's high streets - including looking at the prospect of turning unused retail units into homes.
With all this bubbling under the surface, even with the uncertainty of Brexit and increased pressures on landlord taxes underpinning a slow sales and investment market, it could be a good time to start exploring the potential behind investing in new-build property.
LOOK AT THE BEST AREAS TO INVEST
With Brexit affecting the property market more in some areas of the UK than others, take time to research the market in areas you would be keen to invest.
If you are looking for steady capital growth on a long-term buy-to-let investment, a new build can be a good option. But a property is only as good as the area in which it sits.
What plans are there for other new developments in the area or proposals to further development on the same site? How good are transport links and schools? Are there plans for new or improved transport links to big cities?
All this needs to be taken into consideration when pondering a new-build investment.
You would always research a developer if you were considering buying a new build to live in, right? Exactly. And it should be no different when looking at a new property as an investment opportunity.
Undertake deep research on all the main developers building new homes in the area, or areas, you are looking to invest.
Look at their customer reviews and testimonials and look at online forums for landlords that may reveal which builders are open to deals on new property.
Which developers are best for after-sales care? Even new-builds have problems so you'll want to choose a developer with a solid reputation for sorting out early teething problems at the property.
BE INVOLVED IN THE DECISION-MAKING
The beauty of new-build properties is they are always a blank canvas - at least until the developer makes decisions on decor and fixtures and fittings.
Many developers are open to buyers being involved in the decision-making process when it comes to decoration and fixtures and fittings. As a soon-to-be landlord of a new-build property, it makes sense for you to be involved.
Lighting, flooring and decoration could all be up for discussion, so ensure you ask the right questions early on, especially if you are buying off plan.
LOOK FOR A DEAL
Yes, it's a new-build property. But that doesn't mean you have to pay the full price. That's especially true in the current slow market we are seeing in many areas of the UK.
The power of negotiation remains, even on new-build purchases. So, ensure you do your homework before making an offer.
What have other properties on the development sold for? Find out and use your knowledge to get a deal that suits your financial needs.
SNAGGING AND WHAT YOU NEED TO KNOW
'Snagging' is when the buyer of a new-build property checks for defects or a poor finish.
This should unquestionably be done by you as an investment buyer before completing on any new-build purchase. It's a comprehensive process, but you want everything to be correct and as it should be.
Here's what you should be looking out for:
1. The paintwork: Is it too thin or patchy?
2. The plastering: Ceilings and walls should be smooth and joints crisp and neat
3. The brickwork: All brickwork should be clean, with good pointing and uniform design.
4. Fixtures and fittings: Is everything installed as it should be? Check cupboard doors and drawers in the kitchen and ensure everything opens and closes as it should.
5. Windows: Again, check they all open and close properly and that they are fitted correctly with no scratches on the glass.
6. Woodwork: Kitchen worktops should be smoothly finished and fitted correctly. Take a spirit level to check they are level.
7. Plumbing, electrics and heating: Check everything, including taps and switches, is working as it should be and keep an eye on flooring beneath radiators that could show up small leaks.
8. The exterior: It can be worth asking a roofing expert to check tiles and guttering / downpipes are fitted correctly.
If you're thinking of investing in new-build property around Camberley, but need more advice, speak to one of our property experts today.