As many UAE-based buyers prefer to purchase their UK property off-plan, Alan Wheatley of Imagine Homes examines the benefits and advantages of this type of investment.
UAE-based buyers who buy apartments in the UK for investment often purchase in new build, off-plan developments. In many cases, when you read about new build developments, there is information on the location, the developer and any other benefits such as centres of influence and places of interest. However, in this article I am able to identify the clear benefits of buying an off-plan property in the UK.
Buying a new build apartment has a wide range of benefits, from lower maintenance and running costs compared to older housing stock, as well as having stylish, new and modern fixtures and fittings. The National House-Building Council (NHBC) is the body that sets the standards as well as being the leading warranty and insurance provider of new and newly converted properties.
It is a consumer protection body that outlines the following advantages and benefits of new home ownership.
Lower running costs: New homes are built to the latest and higher insulation standards and have more efficient heating systems than ever before. Greater energy efficiency is a clear advantage as it will provide the lowest energy costs, a clear benefit to the occupier of the property. This would also mean lower carbon emissions than older properties.
Ten-year warranty: If the builder is registered with NHBC, the home will receive the full protection of NHBC's Ten-year Buildmark cover. Around 80 per cent of new homes are covered by warranty and it currently protects more than 1.7 million properties. As well as protecting home owners against faulty construction, if a problem is reported in the first two years after the home is finished, NHBC can provide a free, independent resolution service.
Chain free: Long chains can be extremely stressful but because there is no chain when buying a new home, it takes away the normal pressure that is associated with buying in the UK. This is a clear advantage to the UAE based buyer as they can then concentrate on setting the property up correctly for the buy-to-let market.
Contemporary design: New build is a very competitive market with developers competing with each other on variety, style and design.
If you look at the offerings in the UK's Sunday papers, there is a lot of choice from trendy loft-style apartments to apartments spread over 3 floors. There is also design choices for fit
outs with developers offering different types of kitchen, bathroom, fixtures, fittings and event different colour schemes. This means that each individual apartment can often look different from the next. Also, many developers and furniture specialists offer a bespoke furniture solution. This certainly helps the overseas buyer who is buying for investment. It does mean that the purchase can be made from overseas without even the need to visit the property before, during or after the build process.
A blank canvas: A new apartment is a blank page which means that there are no hidden decorating disasters from previous owners to deal with.
Incentive schemes: Look for specialists in the field. I have heard so many problems from owners where the property is quite simply not been managed very well. Use a company that provides a specialist service to expats and overseas buyers, who has a local office and also a strong presence in the UK market. Good incentives offer guaranteed rental periods and furniture solutions as well as providing property at good value.
Security: This is a major issue, especially in the major towns and cities. Tenants place security as a high priority, which is why new build is always so popular in the buy-to-let market.
In addition to robust and modern locks, such aspects as the use of fire retardant materials, installation of smoke detectors and safe entry systems all have a high priority as tenants choose a property to rent.
High standards: It is a fact that new homes require less maintenance and repair than older homes and areas that commonly require attention such as window frames and skirting boards, are fresh and just beginning their life span.
