BUYING A
NEW-BUILD
PROPERTY
New-build:
recently completed and not previously lived in
The current economic climate has caused a
resurgence in the popularity of new-build property.
This is mainly due to the rise in repossessed
properties that have fallen into the hands of
banks, particularly in countries such as Spain
and the US.
Banks have become the reluctant owners of a
large percentage of new housing stock, which they
want to offl oad as quickly as possible to recoup
their lending. They are therefore prepared to cut
their losses, and their properties are priced to
sell, often at below build cost. They need quick
sales and may be offering incredible incentives
to help sell their properties. These include preapproved,
low-rate, fast-track mortgages, often
for fully furnished properties with heating, air
conditioning, white goods and, in most cases,
building warranties.
Properties like these, which are ready to
move into, are also known as key-ready.
Remember, while you might be tempted by the
price of a repossessed property that is ‘nearly
new’, it’s sometimes the case that evicted owners
vandalise their homes before leaving – so a new
owner may end up spending money on repairs.
Today’s discounted prices are an obvious
attraction of new-build, but what are the other
benefi ts of buying this type of property? Like with
off-plan, with new-build you take ownership of
a brand-new property, one that has never been
occupied before. But unlike off-plan, your property
is complete so you know there is no chance of
losing your money if the developer goes bankrupt
halfway through construction. Similarly, there is
no chance of your property’s completion date
being delayed. When buying off-plan it can often
be diffi cult to visualise the completed interior,
building and indeed entire complex, whereas
buying new-build property means there are
no unexpected surprises about size, views or
neighbouring properties.
Generally, buying a new-build home means you’ll
have very little extra outlay on top of the purchase
price, as many come furnished.
Good developers build properties to modern
standards, have environmentally sound
construction methods, and incorporate the latest
security, safety, electrical and plumbing systems
in their homes.
Check your property comes with a building
guarantee and have your lawyer confi rm the
developer has proper insurance to cover any
liability to meet the guarantees.
Your lawyer should also check the title deed
is valid and that the property does not come
with any debts, which the vendor may have
secured against the property. In some countries,
death duties, utility charges, unpaid rates and
land taxes can stay attached to the property once
it’s changed hands.
Finally, you may want to check that the
developer, or others, are not planning to put up a
wall of new homes in front of your view, once all of
those in your phase have been sold.
AIPP CONSUMER GUIDE 15
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