Whether you’re buying a new-build house or apartment, new-build investment properties offer numerous advantages over older properties, including:
Higher Rental Yields
In some cases, new builds usually charge up to 41% higher rent than older properties due to their modern design, updated amenities, and advanced technology.
Tenants gladly pay more for the comfort, convenience, and energy efficiency they offer, along with the allure of being the first occupants. This high demand enables landlords to set competitive rental prices, boosting rental yields. New builds thus present a lucrative opportunity for savvy investors.
Lower Maintenance Costs
New builds, with many components under warranty, require minimal immediate repairs, reducing landlord maintenance costs. Built with durable materials meeting modern standards, they offer hassle-free ownership, allowing investors to focus on revenue generation rather than constant maintenance.
Tenant Appeal
New-build buy-to-let properties attract young professionals and families seeking modern living, especially in growing areas. Their proximity to schools, shops, and transport hubs expands their appeal, broadening the potential tenant pool.
This boosts the chances of securing quality tenants faster, minimising vacancies and ensuring steady rental income.
Energy Efficiency
New builds prioritise energy efficiency, benefiting tenants in two ways:
- Firstly, they meet rigorous standards with features like insulation and advanced heating, cutting energy use by up to 20% and reducing utility bills.
- Additionally, these homes align with eco-conscious living trends, appealing to those seeking sustainable options amidst growing climate change awareness.
This dual advantage makes new builds more appealing to a broader tenant base.
Property investors favour new builds for their potential for high return on investment (ROI).
With this in mind, buy-to-let investors eyeing solid and long-term returns should seriously consider new-build properties in areas like Liverpool and Manchester. These locations boast high demand and potential for price growth, promising exceptional capital gains and yields for savvy investors.
For more property investment insights, check out some of our useful buy-to-let area guides, such as:
