Good time to buy new-build properties, expert says

Stability of house prices in the new-build sector means that now is a 'particularly good time' to invest in a brand new home, according to Kevin Wilkins.

The group marketing director at Bovis Homes, has explained that because new-build prices only rose 3.2 per cent in the last year the stamp duty holiday is about to end, buyers should act quickly to pick up a good deal.

Month-by-month increases, as revealed by the SmartNewHomes report, are also showing signs of decreasing. Property prices only increased 1.2 per cent from November to December when in the preceding months there were consecutive increases of 2.6 per cent.

New-build homes are becoming increasingly attractive to first-time buyers who can make the best use of government assistance schemes to get on the property ladder.

"Demand has been growing and many house builders like Bovis Homes are now offering attractive purchase assistance schemes like the government-backed FirstBuy shared equity package which are proving effective in getting people onto or up the property ladder," Mr Wilkins explains.

"Having to pay higher deposits had become a real block to buyers' aspirations and these low-deposit schemes for new homes are helping to unlock the market."
Potential homeowners are realising that renting can work out a lot more expensive than buying in the long-run so, even if the homes do not have as much character as more historical builds, the financial advantages are stronger than ever.

Mortgage indemnity schemes offered by the government mean that 95 per cent loan-to-value rates can be offered on new-builds, which means that the initial large deposit outlay is reduced.

This of particular importance when being able to lay down money for the deposit is the biggest obstacle for first-time buyers.

The benefits of not having to deal with the previous owner's poor DIY decisions can also be a big draw to potential buyers.

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2012-02-16 13:28:41 © Moneyextra.com