Buying New Property

Buying a brand new property, fitted with that luxury designer kitchen and en suite bathroom you've always wanted, can prove irresistible. On top of that new homes are generally cheaper to run than older properties, and they are built to a high standard (see our buyers' guide Why buy new for more information about the advantages).

But there are things you should bear in mind when thinking of purchasing a newly built home. The National House-Building Council (NHBC) has a checklist of things to look out for.

Our New Property Check List

• Make sure the new property is protected by a good warranty provided by a reputable company. Most new homes are covered by the NHBC's 10-year Buildmark warranty and insurance but some property developers use other warranty providers and can give details of the guarantees in place. When a new property is not covered by a NHBC warranty or equivalent, ensure that the final building control certificate is available.
• Check whether your builder is NHBC registered. You can do this by calling the NHBC on 01494 735363 or checking the register on the NHBC's website.
• Check that the builder has a good national or local reputation.
• Ask to look around homes the property developer has built before and chat to previous customers if possible.
• Visit the site to see if it is tidy and well managed. This will give another clue about the attitude of the builder and his commitment to quality.
• If you need a mortgage ask your lender at an early stage. Employ a solicitor (or licensed conveyancer).
• Before taking possession of your home make sure you inspect it carefully.
• Always wait until the home is fully completed before you move in, providing you are not buying it off plan. Once you have moved in check your new home again thoroughly.
• Report any defect in writing to your builder and make sure you keep a copy.
• If in dispute with your builder write to the appropriate NHBC office.

The Costs of a new Home

Before you set your heart on a new property, you should of course consider how much you can afford. You need to work out how much money you have yourself and how much you need to borrow to make your dream home purchase a reality. There are many different financial institutions, including building societies and banks, which offer loans for new homes and it pays to shop around for the best deal.

When deciding how much to spend on a property, you need to be sure you will have enough money to pay for all the additional costs as well, says The Citizens Advice Bureau.

These include:

• Stamp Duty Land Tax. This is payable on properties costing more than �125,000 and is at least one per cent of the purchase price.
• Land Registry fee.
• Local authority search.
• Fees, if any, charged by the mortgage lender or someone who arranges the mortgage, for example, a mortgage broker.
• The buyer's solicitor's costs.
• VAT.
• Valuation fees.
• Removal expenses.
• Any final bills, for example, gas and electricity, from your present home which will have to be paid when you move.

For more information about Stamp Duty Land Tax, click here or ring the HM Revenue and Customs (HMRC) Stamp Office enquiry line on 0845 603 0135.

You should also take into account the running expenses of the new property you wish to buy. They may include:

• Heating bills.
• Council tax.
• Water rates.
• Ground rent, if the property is leasehold.
• Service charges, if the property is a leasehold flat.
• Insurance costs, including life insurance, buildings and contents insurance.

You will also have to pay a deposit on exchange of contracts, up to 10 per cent of the purchase price.

Location, Location

Finding new homes for sale by property developers in different parts of the country is quick and simple with our easy-to-use search facility. You may want to move to be nearer to relatives or need to relocate because of a new job. If it is an area you are unfamiliar with, there are many sources of information available to find out more about the place.

Local council websites are a good starting point. They contain a lot of information about the local area, such as plans for new property developments or transport links.

Other things you should think about when buying a new property is whether it is near to a main road or a pub, for example. Both are convenient, but also noisy. The same applies to a railway line in the vicinity and the house may be under a flight path.

Check out the local amenities, like shops, hospitals, and leisure facilities. Find out if the local schools are good and whether there is public transport. Look at the condition of other properties in the area. Bear in mind, that new home lets you put your very own 'stamp' or style on the new development, right from the beginning.

Other questions to ask yourself include:

• Are there any development plans in the area?
• What is the crime level like in the area?
• What are the neighbours like? Are they noisy?
• Has there ever been a dispute with the neighbours or anyone else living nearby.

Buying new Homes off-plan

Once you have identified where you want to live, and found out where new homes are for sale, it's time to see if you can get a bargain.

Property developers will often sell all or part of their development before it is completed. The practice is known as selling off plan and helps generate much needed revenue for the developer.

If you're prepared to buy before you see the finished product, you can get as much as 20 per cent off the asking price of a new property. Not only is it cheaper to buy a new property off plan, it can be a good investment because it might be worth much more by the time you move in.

Expect to pay the property developer between �500 and �1,000 to reserve a new homes that is being built. Beware, however, that you may have to wait longer than you anticipated to move in. Bad weather can delay the construction of new homes and there is usually no fixed date in the contract for completion.

When you do move in, you may also be disturbed by continuing work on the development, particularly from lorries bringing materials onto the site.

Your new property may also not be quite what you envisaged it would be. Property developers will make plans available to help you make your choice, but it can be difficult to visualise the dimensions of rooms, the size of the garden, or how close the other new homes on the development are to your house.

Part-exchange Your Property

Some new property developers offer part-exchange deals, enabling you to sell your existing old home to the developer in return for a discount on the price of the new property you wish to buy.

This guarantees you a cash buyer and you don't have the worry of having to sell your house on the open market, with all the complications that can bring, in terms of delays and possible last-minute hitches.

It also means you avoid estate agent and advertising costs and can move quickly without any hassle or delay. Furthermore, it gives you more money to spend on any new items you need and you can plan your move.

Happy new property and new home hunting�