| Some
say house prices are about to drop,
others say they are rising. And amid
the confusion, the temptation to snap
up your home while the going is good
has never been greater. But how to do
it there's nothing suitable on the market?
One increasingly popular option is the
'off-plan' purchase, in which you buy
a house on a new development without
having actually seen your bricks and
mortar. Developers say that buying in
this way gives you a vital early foothold
in a new development and can save you
cash in the long run. But is it worth
the wait?
As
with buying any property, there are
always risks. The National House Building
Council (NHBC) says: "Off-plan
homes have all the attractions associated
with new houses. Freshly decorated rooms
need only minimal maintenance, and energy
efficient heating systems and good insulation
mean that running costs are low.
"Buying
off plan avoids the threat of being
gazumped and the house will be the end
of the selling chain. These advantages
are important but house buyers should
be aware of the potential difficulties
involved."
One
of these potential difficulties is the
fact that there isn't usually a fixed
date for completion in the contract.
If there are planning delays or any
other hold-ups, such as bad weather
while the house is being built, it could
mean your moving-in date is pushed back
by months.
At
the opposite end of the scale, if the
house is ready on schedule, it does
not guarantee that the rest of the scheme
will be, so you could find yourself
waking up every morning in the middle
of a building site until they are completed.
Also,
what you see isn't always what you get.
For example, you may not realise just
how close the house actually is to the
neighbours or be able to see the quality
of the workmanship until its too late.
A
spokesperson for the NHBC says: "Off-plan
homes are a contract between the buyer
and the builder, but if the builder
has an NHBC warranty and you do have
problems there is something we can do
about it.
"For
example, if for any reason the builder
goes bust before the work has been finished,
we will either make sure the house is
completed so the homebuyer can still
move in or we will get the deposit paid
back to them.
"If,
however, the completion date has not
been met on time, then it is a contractual
issue and we will have no sway. The
homebuyer may have to get a solicitor
or conveyancer involved.
"Before
you agree to put a deposit down on an
off-plan home, you should always check
out the builder's reputation, especially
if they are a small local business.
"Ask
around and try to find out who else
they have done work for and if they
have built any homes nearby. It is also
worth finding out of they are registered
with us."
But,
especially for first-time buyers, securing
an off-plan home does come with its
own benefits.
To
begin with, putting down the deposit
and watching your new house quite literally
grow will save you the considerable
hassle - and shoe leather - that other
buyers have to put up with as they traipse
from viewing to viewing.
And
you'll also be able to relax in the
knowledge that gazumping is something
that only happens to other people.
There
are financial benefits too. Because
the price of an off-plan home is fixed
at an early stage, it allows the purchaser
more time to save up and arrange their
mortgage.
And
a fixed price doesn't mean the house
value will stay the same. If house prices
do keep rising, then off-plan buyers
could be quids in before they even unlock
their new front door.
| FUEL INVESTMENTS |
 |
| The
right finance deal can be make-or-break
for your property investment.
That's why you should talk to
Fuel.
Fuel
Finance are a whole-of-market
broker which means we can give
you access to High Street lenders,
specialist products and exclusive
Fuel deals that you can't find
elsewhere.
We can offer you the most competitive
mortgage and insurance products
available and provide specialist
advice on financing Off-Plan
deals and investing in properties
in the UK and overseas. As one
of the UK's leading mortgage
brokers, we handle over £40
million worth of mortgage business
every month for our clients.
Whether you need a buy-to-let
mortgage for your first investment
property or you're funding an
established property portfolio,
we're here to help. If you are
serious about making money in
property, talk
to Fuel today.
Your home may be repossessed
if you do not keep up repayments
on your mortgage.
Fuel
Investments Limited.
Authorised and regulated by
the Financial Services Authority.
Registration number 313500 Fuel
Investments Limited | 3rd floor
| Surrey House | 34 Eden Street
| Kingston Upon Thames | Surrey
| KT1 1ER
|
|
