Are you a first-time buyer looking for that ideal foothold to start a new life in? Are you unsure whether it’s worth looking for a new build property or a repossessed home? It can sometimes be tricky to get clarity on which option is going to be best for you in the long run. This is especially the case when you consider that there are so many positives to either choice!
However, more and more people are attending repossessed property auctions. This is because plenty of new home buyers are looking for cheaper ways to invest in new properties without having to tie themselves down to decades and decades of credit! With a recession looming in the UK, it makes genuine sense to get as much value out of the property you purchase as possible.
Let’s take a look at the differences you may wish to consider when it comes to buying a new build home and a repossessed property.
Buying a new build is an appealing option for many people. The main reasons for investing in a new property outright should be pretty obvious! This is a home that no one else has lived in before. It’s completely new and built for you to move into. It’s a blank canvas.
However, new build properties can be expensive as a result of their appeal. This means that, instead of investing in an existing home or property elsewhere, buying into a completely new building project means that you’re paying towards a stylish, modern foothold.
Mortgage rates on these builds are likely to be fairly high, though they can vary. A new build home is a great choice if you really want that unique, fresh feeling when you first step over the threshold of your first home.
However, why not think about purchasing a repossessed property instead? As the name suggests, this will be a home that has been seized by banks or creditors as a result of an owner going bankrupt or having failed to pay back secured loans.
This means that a property owner – which is likely to be a trustee or creditor – will want to get the house in question on the market and make a profit as soon as possible. This is why you will see plenty of repossessed homes going for remarkably affordable rates at auction.
There is nothing intrinsically wrong with a repossessed home! They are not being sold due to defects or internal issues. They are being ‘reduced to clear’ in the sense that the seller is looking for a very quick sale to balance the books.
That all depends on what you are ultimately looking for in your new home. If you really want a fresh, new look, then you will naturally gravitate towards a new build.
However, for properties with character which have stacks of space and which are available at incredible value rates, why not look at purchasing a repossessed property instead?
We hope that our blog has been helpful please don’t hesitate to get in touch with us by emailing [email protected] and one of our lovely team members will get back to you as soon as possible.
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