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July 2025

July 2025

Property investment opportunities

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Is buying a new build a good investment - Pros and Cons

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.

The pros...

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The cons...

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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.

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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 get you cashback rewards and lower interest rates.

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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.

Find your new home!

Find your new home! Want to get moving? Contact us at one of our developments with your enquiry for friendly, no-nonsense help and advice.