Investment opportunities
Whether you’re looking to buy a second home, a home to let or strengthen your investment portfolio, property offers many long-term investment opportunities.
Whether you’re buying your second home or you're adding to an already vast portfolio, investing in property requires a methodical and calculated approach together with a clear strategy.
Is buying a new build a good investment?
From the smooth buying process to the lack of maintenance, there are many reasons why buying a new build house is a good investment. And, contrary to the common misconception that new builds are less likely to go up in value over time, many appreciate in value in the same way as older properties. Let's take a look at some of the pros and cons of investing in a new build.
Pros and Cons
The pros:
- Lower maintenance: In a new build everything is brand new, from the carpets to the appliances, meaning you won't need to spend nearly as much on repairs as you would in an older property. Great for you, and attractive to any prospective tenants.
- Warranties: All new Persimmon homes are covered by a 10-year new homes warranty, the first 2 years of which are covered directly by us. Giving you peace of mind just in case anything does go wrong.
- Lower running costs: Thanks to built-in energy-efficient technology and appliances, our new homes can save you thousands each year on energy bills compared to an older property.
- No chain: With no buying chain to contend with, you can enjoy a hassle-free move and furnish the property in your own time, as it will be ready to move straight into.
- Wide range of styles and price points: A new build doesn't mean a cookie-cutter home with no personality. At Persimmon we build houses in a wide range of styles and layouts, so whatever you're looking for in an investment property, we'll have a house type to suit you.
- Welcoming communities: On a new build development all your neighbours will be new too, providing a great sense of community and opportunities to forge friendships. Our developments are also located within easy reach of schools, amenities and transport links, making them ideal for a range of lifestyles.
The cons:
- Less room for price negotiation: Unlike an older property where you might be able to offer a lower price, new build prices tend to be fixed. That said, you can still take advantage of our great buying schemes and incentives, which might include low deposit options and discounted fittings and extras.
- Factor in extra costs and restrictions: It's worth noting that with the majority of new build homes, you will need to pay ongoing estate service charges to a management company for the maintenance of common areas. You'll also have restrictions on what you can do with the property, such as using it for trade operations or making significant changes to the front of the home where it meets the road.
Get started in Property Investment
Although there are no hard and fast rules to property investment there are a number of actions you can take to improve your success rate. Below are four areas worth considering before you take on the responsibility of an extra home, each designed to maximize your return, drive growth, and make your investment worthwhile.
Research your market and location
If you're looking to rent your property, location is everything. Before you buy, it pays to get to know a little more about the area you are interested in. That includes finding out more about the rental market and your prospective tenants.
It's also worth looking at the competition and the homes already available to rent. This will give you an idea of the average rent and type of property the area’s tenants are interested in. It will also give you a clearer steer when it comes to furnishing your property.
Don’t underestimate the cost of ownership
Buying a new home can be more expensive than you think. If you need to arrange a mortgage you'll need to factor in arrangement fees, stamp duty and all of the other costs associated with buying a new home.
If you're taking out a mortgage to buy an investment property, there are plenty of options available. For example, with a new build you might be able to access a green mortgage, which could getyou cashback rewards and lower interest rates.
Find out more about new home finances
Improve your credit rating
Reducing your reliance on credit cards and loans is not only good for your cash flow, it could help improve your credit record and make it easier to secure loans and mortgages in the future.
Yield is king
As every successful property investor will tell you, your yield, or return on investment, is key. Before you buy any property you should do a few simple calculations. These should cover the following areas:
- Your projected annual rent
- The home purchase price
- Your initial acquisition costs
- Your initial deposit
- Your projected interest charges from any loans or mortgages
- Any expenses incurred in securing tenants, maintenance, and administration
- Any tax you will be liable for as a result of your investment
With these calculations in mind, it's all about finding the right property for you, at the right price. We build homes in a wide variety of styles at a range of price points around England, Scotland and Wales. Browse our new build developments to find the perfect property to add to your portfolio.
Read our customer stories
When you buy with Persimmon, you gain not only a beautiful and high-quality new home, but also a brand new community, plus the support of our friendly sales teams by your side through the journey.
But don't just take our word for it - here's what our customers have to say.
Find out more
Read our customer stories
When you buy with Persimmon, you gain not only a beautiful and high-quality new home, but also a brand new community, plus the support of our friendly sales teams by your side through the journey.
But don't just take our word for it - here's what our customers have to say.
Find out more
