For all types of buyers, new-build houses are an appealing proposition. They are an excellent option, whether you are downsizing, have a growing family, or are a first-time buyer.
However, you might face a couple of issues if you purchase new-build homes. This is particularly true if you don’t know what you’re doing.
For those who don’t know, new-build homes are those which have never been lived in at all. To make things simple, it is a new property that has no previous owners.
If you’re planning to buy a new-build house, you have to work with a professional Oahu real estate agent. Today, we’re going to talk about several things you should know about purchasing new-build homes.
What If There is a Delay with the New-Build House?
Despite laying out long-stop and short-stop dates, there are occasions where developers still have a hard time hitting completion deadlines. If this is the case, the solicitor needs to sign a warranty agreement that protects your deposit. It might even enable you to completely withdraw all your deposits and claim a full refund.
When Will You Pay Tax on a New-Build House?
So, how can you calculate tax on your new-build house? You may take several weeks to move in since new-build houses are sometimes unfurnished. This means it has no utilities, fittings, or fixtures.
Luckily, you will obtain a 100% tax discount for the first month if your new-build house is uninhabitable and unoccupied. After one month, you will be subject to the regular tax rates for your region.
When Should You Exchange Contracts on a New-Build House?
Legally, exchanging contracts is the binding part of selling a house. However, the timeframe can differ when it comes to new-build houses. The reason for this is that you might wait for the development to finish.
In addition to that, you should exchange contracts only after you have finalized the mortgage agreement and made preparations to make the needed deposit. Oftentimes, the deposit is 10% of the selling price. However, it can go up to 20%.
After you take care of the formalities, you can exchange contracts around 1 month before the completion date.
Reasons to Buy a New-Build House
There are a lot of things to consider when buying a new build house. However, there are also a lot of benefits that you can get. This includes:
- Oftentimes, you can buy new-build properties “off-plan”. This enables you to have a bit of input in the design. This includes the fittings, fixtures, and more.
- Since new-build houses need to follow the latest building codes, they are more energy-efficient compared to older houses in general.
- New-build houses are modern in structure and design. Because of this, they sometimes provide the latest in features and technology.
- A new-build house is a blank canvas. It has empty rooms and fresh walls. Thus, you’ve got a lot of opportunities to incorporate your style and personality.
- Buying a new-build house also gives you the chance to move in right away. This is especially true if you’re in a hurry.