Can you sell a new build house
The difference between selling a new house and a property you’ve owned for for sometime can be rather significant. There is a tendency for buyers to prefer a period house. In 2011, the Future Homes Commission conducted a research on newly-built houses. They found that 75% of UK homeowners tend not to choose houses that were built within the last 20 years.
While it’s possible for new properties to have a fast turnaround, there are a lot of factors that may affect your sales. The following are some things you need to consider when selling a new build house.
Is a new build valuable for resale?
The first thing you need to ask when selling is how much value you can get from your property. One of the most prevalent obstacles is the competition. According to the Ministry of Housing, Communities & Local Government, 151, 020 new build properties were completed in 2019. This was a 10%t increase from 2018.
The Guardian also says that in 2018, “more than half of the 1,900 ultra-luxury apartments built in London…failed to sell.” They even referred to these unsold homes as “posh ghost towers.”
However, new build houses also have a ton of benefits:.
1. Fix modern issues
Since your home is built with modern standards, there are also a lot of modern issues that are addressed. For example, some houses have been built with environmental protection and carbon emissions in mind.
2. Modern designs
In regards to the aesthetics, younger homeowners, for example, might prefer the more innovative design and construction of your new home. This means that not only is your home designed to fit the current standards, it might also adhere to the ever-changing Building Regulations.
3. First Time Buyer Benefits
There are a lot of incentives for being a first time of a new build house. Aside from the prestige, you also have access to new-build finance, special rates and possible government incentives. You may also be able to invest in the new home and eventually, when you decide to sell, you have more control over it.
Selling a new build house after a year
Some homeowners, despite the investment, might decide to sell their home within just a year. There are a lot of implications when it comes to this, especially if you’re just reselling. The biggest consideration you might have to make is the financial aspect.
When you gain a profit from selling a property, you have the responsibility to pay a fee. Of course, this fee only applies for when you’re able to complete a sale or have “disposed” of an asset.
When selling a house after a year, you might have to pay a capital gains tax of up to 20%. If you sell it less than a year after you bought it, the fee might even be bigger as it is taxed at the same rate. Then you have to think about the closing costs.
Do you lose money buying a new house
Whether you’re thinking of buying a new house to settle on or to eventually resell, it’s fair to consider just how much you’re getting or losing. The appeal of new builds can be incredible, but there are things such as the “new-build premium.” This means that a newly-built house can cost up to 2.5 more than the median price.
Some surveys also reveal that it’s easier to hide issues in a new build home. Boilers might not work properly or there can be small, but impactful structural issues that are obscured by the “newness” and “freshness” of the house. This will cost you more than you thought in the long run.
Obviously, these hidden costs might not be applicable to every new property out there. However, it pays to keep this in mind when thinking of buying.
There are a lot of ways you can protect your new home’s value when you decide to sell. If you have a thorough grasp of your new property, there’s a good chance that you can acquire the best deals out of it.
If you need any help with selling a new build house why not call us today and let us guide you! 0191 486 2386