The price of a new build property is often much higher than that of an existing property.
You may be wondering, then, if the premium on a new build flat is worth it. What are the pros and cons of new builds versus conversion flats? And which is the better investment?
Pros of investing in a new-build property
Better quality – As new build flats are purpose-built, they tend to be of better quality and have a more logical layout when compared with their converted counterparts. Therefore, they may appear more spacious.
Lower bills – A new build will comply with the latest building regulations, and they are likely to be more energy-efficient, which means savings on energy costs.
Cons of investing in a new-build property
Cost – On average, the premium for a new build property is 29%, according to Land Registry data. For flats, this jumps up to a whopping 63%. On the one hand, this means new builds have more value. Yet, it all depends on the level of investment you can afford.
Lack of amenities – In some cases, new builds are developed in a whole new community. This might mean less access to amenities such as healthcare, transport and local shops.
Pros of investing in a conversion flat
Character – Perhaps the modern aesthetic isn’t for you and you would prefer a property that has character and a sense of history. Conversions in period buildings can be truly stunning.
Local community – It's likely that a conversion flat will be well-situated in an already thriving community, with neighbours and amenities nearby.
Possibility to add value – Not only can you put your stamp on a conversion flat more easily, but it’s possible to add value through renovations.
Cons of investing in a conversion flat
Poor layout – Naturally, a converted flat comprises the space of an existing property. Therefore, you’re limited to the existing layout.
Inferior quality – It may be the case that the quality doesn’t match up to a bright and shiny new build. There may also be ongoing maintenance and repair issues within the property.
Old-fashioned aesthetics – Architecture and design has changed a lot over the past twenty years. Even if a flat has been renovated, some details may still seem old-fashioned.
What’s the better investment?
New builds are clearly worth more and are in high demand in London. Why else would they carry such a premium? Yet they can lack the character and atmosphere of converted flats.
If you’re a property buyer, then you should consider your needs and desires for a home. If you’re a buy-to-let investor, then you should consider the desires of your target tenants, as well as your long-term investment goals.
Luckily, we have options for both, North South East and West of the UK (hence the name). If you are looking for unbiased, impartial and unobligated advice from individuals that have decades worth of experience in dealing with property the call us on 02081446222, use the chat function bottom right or email us at info@cityandcountrywide.com
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