Today, Nick discusses the pros and cons of buying new build properties. He shares insights from a conversation with aspiring investors who believe that new builds are a no-brainer investment. Nick outlines the advantages, such as low maintenance costs, energy efficiency, and the appeal of modern designs, while also highlighting significant drawbacks, including higher purchase prices, limited potential for value addition, and common construction issues.

KEY TAKEAWAYS

While new build properties offer advantages such as low maintenance costs, energy efficiency, and warranties, they also come with drawbacks like higher purchase prices, limited potential for value addition, and potential construction issues.

The decision to invest in new builds versus existing properties should align with one's investment strategy, particularly whether the investor prefers hands-off, low-maintenance assets or properties with potential for renovation and value addition.

New builds often come at a premium price, which can lead to a decrease in value during the first few years of ownership. Investors should be aware of this potential depreciation when considering new builds.

New builds may have minor defects that require resolution, which can be time-consuming and frustrating. It's important for investors to be prepared for these potential issues even with warranties in place.

For those new to property investing, it is recommended to focus on properties that allow for value addition through renovations rather than new builds, as this can lead to better capital appreciation and rental yields.

BEST MOMENTS

"Buying a new build offers a very different set of advantages and disadvantages compared to buying an existing property."

"You will pay a premium on a new build, making it more difficult to achieve a high rental yield."

"If you have a strategy of adding value, buying a new build means there's really no potential to add value."

"While I might get a higher rent off these properties, I know there's no chance for me to make capital appreciation within a smaller time frame."

"For a new property investor, I would say you don't want to be going down that route at the moment."

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HOST BIO

Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations.

He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems.

Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business

This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

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