Written by Emily Morley, on behalf of Just Landlords.
Everyone’s circumstances and requirements are different, but adding a new build to your portfolio may be the right decision for a number of reasons. Many new families are looking to upsize to bigger rented housing, and new builds can be their first choice. With this in mind, here are our key reasons to consider investing in new build properties:
When narrowing down your search to new builds, it can be easier to find somewhere that fits the specification of ‘modern’. Contemporary is often popular, as it creates a feel of newness, in comparison to the ‘lived in’ feel of an older build that hasn’t received recent TLC. It won’t stay in that condition forever, but you’re giving yourself at least a couple of decades before features begin to look out-dated, providing plenty of time for saving and budgeting. If you were to buy a property built in the 80s, for example, it will most likely require a fresh injection of style. This is by no means a requirement for renting out a property, but in order to hit the ground running, it can only help to ensure tenant interest is high in order to avoid unnecessary void periods.
Repairs and Maintenance
Nothing can be guaranteed, but in general you would be looking at fewer issues initially with a brand new house. Any gas, electric and water installations will be recent, so the parts will be at the beginning of their life. This can straight away reduce the required budget for any changes that would otherwise be anticipated in an older property. If you were to buy an older property, it’s likely that the fixtures and fittings would not have been updated recently.
More modern properties will have been made with energy efficiency in mind. As of 1st April 2018, it’s now a legal requirement for all rental domestic or commercial properties to have an Energy Performance Certificate (EPC) rating of E or higher. If you were to purchase a property with an EPC lower than an E, then you would have to make improvements immediately, before letting it out. This would also mean you would require Unoccupied Property Insurance for longer.
When looking for tenants, it will also be to your advantage to have a good EPC rating. The better the rating, the cheaper the energy bills will be, which can help your property to stand out against a row of almost identical houses available to let.
As well as bearing in mind these factors, remember to research beyond the house itself. Local amenities, such as schools, parks and shops, can be equally important to tenants. The convenience of public transport is also worth considering, along with proximity to main roads.
If you’re looking to add another property to your portfolio, then why not consider taking a look at what new builds are currently available?