Property investors are faced with many decisions when they are buying a property to let. One major choice is whether it is better to buy a new build or a period property. The age of the building could have a huge impact on the price you pay for it, the potential appreciation in value, and the level of demand. It is important to weigh up each property on its own merits, but typically a new build will require you to pay a premium whereas older properties tend to appreciate at faster levels.
One thing to keep in mind when thinking about the new build or period property debate is the location. This is always an important factor and can greatly affect the value and prospects of a home. Period properties tend to have the advantage in this regard and are more likely to be in prime locations. Newer builds are most commonly in secondary locations where land was made available, particularly in major cities like London where space is limited.
New builds have one major advantage over period properties in that they are fresh to the market. This means that they will generally require a smaller investment to get them to a condition where you can let them to paying tenants. They can also offer benefits in terms of energy efficiency, especially if they have been built with this in mind.
Another important issue to think about is the housing stock. When stocks are limited, demand will be higher and the properties can command a premium. This is true for both period properties and new builds. When you are considering an investment property, check the local area to see how many similar homes are available. This will give you an idea of the stock and the potential for appreciation.
Ultimately the choice will come down to individual preferences, both of the buyer and the target market. There are pros and cons of new builds and period properties. It is always advisable to look at the wider picture and plan ahead before you make your investment. The popularity of areas changes over time and demand will also fluctuate so you will need to choose a property in an area that offers good long term prospects. We have extensive experience dealing with property investment in Merton and throughout all other London boroughs, and will always be on hand to provide the advice, guidance and support you need.