Buying new provides peace of mind for first time purchasers
“Buying new makes life that little bit easier when you first buy a home which is why the Bewley Homes development of Parklands, just outside Reading, is ideal for first time buyers” says Jane Saunders, site sales manager at Parklands.
What are the advantages of buying new?
“First and foremost, when you first move in, there shouldn’t be the need to do anything – unlike a second hand home, where often people need to paint walls, re-carpet or install new kitchens or bathrooms.
“Buying a new home offers peace of mind to all purchasers but it is particularly important for first time buyers many of whom won’t have disposable additional funds to handle repairs or maintenance should something go wrong.
“When buying a new home, the electrical appliances in place (cooker, oven, hob, washing machine and fridge / freezer) are also all new and covered by manufacturer’s guarantee.
“If you buy a new home through Bewley, there is an additional two year warranty in place to cover any mechanical, electrical or heating faults. This means in the unlikely event of anything going wrong, there is a support network in place to help guide you through.
“New homes also have a 10 year structural warranty in place (in the case of Parklands, this is covered by Premier).
“New homes are built utilising the newest forms of insulation and boilers, making them more energy efficient and thus reducing the overall cost of utility bills.
“If buying off-plan, buyers have the opportunity to customise their home with flooring and kitchen options.”
Are there any cons?
“Some developments will have an estate charge – an annual charge for the upkeep of communal areas – both internal and external. This charge tends to be higher in flats than for houses – simply because communal areas tend to be larger in apartment blocks. This charge will need to be factored into your outgoings.
“You may find you pay a premium for buying a new home.”
What incentives/discounts/help can first-timers get?
“There are Government incentive schemes designed to assist buyers to access private home ownership. At Parklands, buyers have the ability to utilise the Government’s Help to Buy: Equity Loan scheme (Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000. You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home.
“With a Help to Buy: Equity Loan, The Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest. You won’t be charged loan fees on the 20% loan for the first five years of owning your home.)
“Buyers may find developers willing to offer additional incentives (these might include contributions to stamp duty, a contribution to legal fees and, sometimes, discounts off headline price (cash discounts).”
And why is Parklands attractive for first time buyers?
“Most of the buyers here are first time buyers who have utilised Help to Buy: Equity Loan. The unique selling point about Bewley Homes is the quality of product on offer and many of our purchasers are recommendations from other buyers.
“The location is an attractive prospect, given the close proximity to the amenities and transportation links of Reading (only 3.5 miles away). These will be further enhanced when Crossrail becomes fully operational from 2019.”
Jane’s top tips for first time buyers looking to get on the housing ladder
1. Work out your budget and factor in all outgoings.
2. Get a mortgage agreed in principal – use a mortgage broker who will source the best deal for you and not just try to sell you products from a particular lender.
3. If you are buying in Parklands and use Allensons, the mortgage providers we recommend, they will waive their fee.
4. Appoint a reputable solicitor. In the case of developments, the developer will have a recommended solicitor who will be fully versed in the intricacies of the development, title deeds and contracts. As a result, they can work more quickly for the buyer. Some recommended solicitors will also offer a discount to purchasers of a particular scheme.