The pros and cons of buying a development property
Are you interested in buying a development property? From financial savings to reduced maintenance, there are plenty of advantages to investing in this type of property. However, some disadvantages need to be taken into consideration.
The plans you view before you make your decision to buy may be different from the end result. You’ll also need to check the developer’s reputation. Looking for a new home? Find a development property for sale on GotProperty today.
Advantages of buying a development property
1. Financial savings
When you buy a development property, you’ll enjoy savings on several expenses. You’ll be exempt from transfer duty costs and the transaction expenses are paid for by the developer. Another financial advantage is that VAT is included in the selling price. You’ll typically pay a 10% deposit with the rest of the money being due once the building is finished. When you purchase a house off-plan, the profits can be exempt from capital gains tax if the building is not finished yet.
2. Decreased repair work
Repair work costs you time and money. It’s also a hassle when you move into your house and there’s faulty wiring and broken fences to be fixed. When you purchase a development property, you’ll enjoy a few years without having to consider maintenance. You can relax and spend time having fun in your new home with your family.
3. Increased personalisation options
Instead of moving into a house that was made for someone else years ago, you’ll be able to enjoy a new home that’s built to meet your requirements. You’ll have the opportunity to get the size of the house exactly right and have a say in what finishes are used. Not only will you be able to influence the functional aspects of your new home, but you can also make sure that it reflects your personal styling preferences.
4. Better security
Development properties typically come with high levels of security. Key characteristics of these developments include controlled access and security guards. You’ll have peace of mind knowing that your loved ones are safe.
Disadvantages of buying a development property
1. Discrepancies between the plan and completed house
In some cases, you won’t get what you expected when you buy a development property. When you buy from a plan, you’ll get an idea of what the result will be without seeing it for yourself. Additional houses may have been constructed, which can have a negative impact on the view that you were expecting.
Read your contract carefully to see what fixtures and fittings are included in your new house. In some cases, the developer may install cheaper variations than the ones that you thought you were getting.
2. Levy increases
If there are numerous unsold units, you may end up having to pay higher levies or a special levy may be implemented.
3. Unreliable developers
An unreliable developer can make buying this type of property risky. Before you part with your hard-earned cash, check the developer’s reputation. Make sure that they have been involved in successful building projects in the past.
Look for evidence that they have the skills and experience to succeed. Check online for any past failures that may be an indication that they’re not trustworthy.
Now that you know the advantages and disadvantages of buying a development property, you can make an informed decision on where to invest your money. Find development property for sale on GotProperty and enjoy great savings.
