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BUY NEW PROPERTY
New property normally attracts higher rental returns than second hand, and by purchasing new, you will be purchasing from a vendor that will not decide they dont wish to sell part way through the transaction. Developers have to sell! You are also buying a new property with a structural warranty which negates the need for a structural survey and the pitfalls previously identified. You are buying a property built to the latest and most up to date regulations New homes are six times more energy efficient and generate 60% less carbon emissions so you are also being green, and the quality of finish in new build property has improved over recent years - some developers now operate a Quality Control system during the construction process.
But what else is key your investment being more profitable and hassle free New property will generally reflect the latest in design trends some will have a higher internal specification than others - Many developers include all the necessary kitchen appliances ovens, hobs, fridge/freezers, dishwashers and washer/dryers, giving you a complete package and no additional expenditure. The higher the specification the better. You may be offered the opportunity to choose colours for kitchen units and bathroom ceramics which means you can select the look or your apartment but keep this neutral bold colours can be off putting choose bathroom ceramics that will give the look of an expensive contemporary hotel. A selected number of developers will also offer a bespoke range, which will generally include flooring and carpeting. If the developer does organise this for you, it is complete on day 1 so, no waiting, no voids. Some also offer furnishing packages or full turn key packages that will include knives, forks, spoons, the toaster and the full works if you wish to let a fully furnished apartment which always appeals to the corporate lettings market.
And again, if organised with the developer it will be done on day 1, so again no waiting, no voids, more profit, and less hassle for you because you have a one stop shop. Another advantage is when you can start marketing your investment developers will provide you with a completion date at the point of purchase if the property is finished or an estimated completion if it is under construction. Either way you can plan you can discuss with your appointed letting agent the best time to commence marketing and often you will be able to use the developers professional photography and plans, so you can seek to secure a tenant to move in on the day you complete your purchase. You also need to consider your involvement in your purchase moving forward and your costs you will probably appoint an agent to manage your new investment but you do not wish to incur unexpected charges from them you should therefore look carefully at the level of service your chosen developer will provide to you and your tenant once they have moved in. Most developers will offer some form of customer care and warranty for up to 2 years, which for example would include repairing or replacing the boiler at the developers own cost within the warranty period - but many will only deal with the property owner those who are more focused on providing a high level of customer service and have experience of property bought for investment will liaise with either you, your tenant, your agent or all three. Some developers even provide a handyman service. All of this gives you peace of mind and no additional costs. Visit Nicholas King Homes for more information. Ideally you want to buy, let the same day and not have to think about the property for the length of the tenancy be it 6 or 12 months and if you buy right you dont have to.
Customer orientated developers will demonstrate the workings of the property to your agent and first tenant, they will provide your tenant with all the necessary contact points and many will offer a 24 hour helpline in case of emergency. You must also carefully judge the development itself assuming it has ticked all the boxes for location, what else does it offer? Are there any shared facilities? Such as garden areas that your tenants can use, is there a communal SKY facility? Some developments have further facilities such as private gyms, for residents only or they may have a concierge or porter - These additional benefits may not necessarily attract higher rents but they will put your property at the top of the list and generally attract tenants more quickly. Most developers will have a business arrangement with a local letting agent the agents will have already reviewed the plans and assessed the rental income potential, and because of their relationships you could also benefit from discounted fees. So, to summarise Whether buying your first rental property or adding to your portfolio Make sure you tick these boxes Location, Location, Location New Build An Apartment Identify the tenant pool Make your property is better than others Does it have a high specification? What facilities does the development have? Does the developer offer a high level of customer service? Does the developer offer bespoke or furniture packages Are there any discount benefits from the developers business contacts? What will the apartment let for? Will you have peace of mind? Having ticked all these boxes reserve the new property before someone else does - complete your purchase, secure your tenant and then expand the portfolio start all over again The UK is an Island and property is still as safe as houses. If you are looking for a property that ticks all these boxes visit http://www.nkhomes.com |
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it comes to household insurance, there are two kinds of
policy.
* Buildings insurance covers the structure of the home
itself, as well as the fixtures and fittings
* Contents insurance covers the contents you would take
if you moved.
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