New homes and apartments in Cardiff
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Cardiff flats can be an excellent investment or a chance to live in luxurious surroundings. New houses and flats are marketed both off-plan and newly built ready for occupation
such as Cardiff Bay
apartments.
Buying Off-Plan Property
Why do developers sell off plan?
UK property developers and builders will often sell all or part of their development before the building work is completed to generate sales and finance more developments. The practice is known as selling 'off plan' and there are lots of bargains to be had on UK properties sold in this way.
Incentives
Sometimes with off-plan marketing you will have the opportunity to customise your home or apartment to your own specification. This could include appliances, kitchen worktops and paint schemes. Developers are naturally keen to sell the apartments whilst there are still being constructed and there may be a number of incentives to entice you into making a decision, many of which are designed for investors. These can range from: -
- Discount on purchase price
Developers have been known to give up to 20% discount off the true value of the property with it being possible to secure a property for between £500 and £1000, with a further 5% - 10% payable on exchange (normally 28 days). There's plenty of time to sort out a mortgage as completion won't be until the development is finished.
- Location, Location, Location
With a wider range of apartments and houses to chose from when purchasing off plan you can afford to be more selective about where you want to own your property. Whether you are looking for views or parking, the plans will allow you to understand where your new home or flat is going to be located
- Guaranteed rental income for a fixed period
This is where the developer will guarantee the rental income at a specific value for a set period of time. There may be certain caveats to this, such as the property needs to be managed to ensure that the rent is collected from the tenants in a timely manner. It's always worth checking that the rental income is a realistic figure so when the guaranteed rent finishes you still have a good investment!
This is where the developer guarantees the value of the apartment or house against a drop in property prices. If you're considering selling in the next couple of years, then this may be worthy of consideration, although buying at the correct price to start with is more important.
Not overly common, this is where the developer allows you to rent the apartment with the option to buy it at an agreed price within a set period of time. Often described as 'try before you buy' this can be appealing for young professionals looking to save for their deposit before purchasing.
This is where the developer will loan a percentage of the cost of the home or apartment, which will form the basis for the deposit. This will then allow you to obtain a mortgage, effectively without raising a deposit. This loan will then need to be repaid, usually after a set period of time, or upon sale of the property.
Points to consider
Being able to pick the location of your new house or apartment is a brilliant advantage, but make sure you've checked everything carefully. Are any windows high level only or obscured, taking away that view you were after. Is the apartment next to a busy lift which you weren't expecting?
Check the property you are buying has a warranty. There are a number of schemes such as Premier Guarantee, NHBC or architect's/engineers warranties. The majority of lenders will require one of these to release funds.
Make sure you know the exact specification of the property you are purchasing. You may have the option to specify the fixtures and fittings you want in your apartment, but you will want to know what you are getting!
Check what fees you will have to pay. If you are buying a leasehold property then you're likely to have to pay an engrossment fee, which is a payment towards the creation of the lease. In addition, some fees will have VAT charged on them. Spend the time going through the contract so you know what you will be liable for.
Whilst you're not going to need to pay the balance before the development is finished, you may not know the exact date the development will be completed. On larger developments work may still be being carried out when you have moved in, in other areas of the developments.