It’s no secret that I’m not fond of New Builds or Schemes (Help to Buy, Shared Ownership etc), but during this rigmarole I was forced to eat my previous words.
When you are buying a New Build they tend to be chain free. You don’t have to worry about an upper chain and generally just need to worry about the completion of the build of your property. You can be part of the process, choose your kitchen, flooring and a load of other bits.
If you are currently a homeowner and reading this series has made you nervous about moving, there are so many options out there, buying a new build is one.
Due diligence is key. Last week I read an article that reaffirmed my reservations about New Builds. Many people were having to move in to temporary accommodation whilst building errors were fixed, however if you know you are buying a new build, make sure you take a professional with you. A builder will spot errors at first glance before you do. There is now a board charged with overseeing the quality of new builds so issues with New Builds shouldn’t be as catastrophic as they once were.
Another way to avoid the pain of a chain is to not have one on your part.
Don’t depend on equity
If you are chain free (your house doesn’t need to be sold before you can move) then that takes a lot of pressure off of the transaction.
There are 3 ways to avoid a chain:
1. Save up thousands of pounds as a deposit for your new home. Move and sell your current home as and when
2. Have 2 properties. Turn your current property in to a Buy To Let and buy your second property by releasing equity and saving (this options means you’d have to pay a little bit more stamp duty & will kick start your property portfolio)
3. Sell your property imminently and move in to temporary accommodation. Bank your funds and wait for the perfect property
Sometimes you have to go slow to go far.
For now, we’ve put on the brakes and have turned this loss in to a lesson.
Join me next week for, “The evil chain that stole my dream home – Recovery. What’s next?”