WHAT TO BUY NEW BUILD T
he legacy of the worldwide downturn is that there are developments far and wide full of newly built but unsold properties.
Why buy something off-plan when there’s plenty of
new homes in need of a buyer; and why buy a resale when you can have something in pristine condition? That’s one way of looking at it, but the fact is that there are reasons why there are so many new-build homes in need of a buyer, so you must enter this market with your eyes wide open. Have they been built in the right place, are they built to a decent quality, or are there just too many of them for the level of demand? In some areas, banks now own many new-build
properties and, keen to offl oad them and recoup some losses, are selling them off at up to 60 per cent discounts. But beware when buying a “distressed” property that your lawyer completes due diligence, and that you are not buying on a “ghost” development which is never going to attract the occupancy levels you seek for rentals, or the vibrancy of a thriving community. Don’t just be dazzled by huge discounts, because you must still ask the same old questions about location, access, amenities and exit strategy, or it won’t be the bargain it seems. Equally, though, do consider the benefi ts of new build, which has many converts for good reason. Unlike off plan, you can see exactly what you’re
getting, and at the same time benefi t from a brand new property. There are usually no nasty surprises about size, views or neighbouring properties (but do get your lawyer to check for plans on neighbouring plots).
New-builds are built to the latest building standards – though remember, these might not be the same as the UK – and may have state of the art integrated technology which includes safety and security features. Although you may be liable to a VAT type tax on new- builds (in France it is 20 per cent), generally you could expect very little extra outlay on top of the purchase price, and the property will usually come with a 10 year building guarantee (get your lawyer to check this). Also be aware that in some countries fi tted kitchens
aren’t included, so check exactly what you are getting for your money, for example is the furniture package included or is that an extra you will need to pay for? But another plus is that new-build properties are often easier to maintain, and this is a distinct advantage for those renting out their homes – especially if they are on a development with a management scheme in place. Being on a development also comes with shared facilities, and a sense of community which some people prefer.
The thrill of the new?
Ë Don’t let big discounts blur the big picture: is it a good buy for you?
Ë Is the area so saturated with identical homes that demand will never catch up? Think ahead to rentals and resale.
Ë What taxes will be payable on your new-build property? Ë Are all the fixtures and fittings included in the price?
Ë Seek legal advice on planning permissions and building guarantees.
New build – a property that is brand-new and hasn’t been previously owned.
AIPP CONSUMER GUIDE 13
SECTION 2 PLANNING YOUR PURCHASE
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