A fixed price: newly built homes are sold at a fixed price, so there is no need to worry about overbidding, which is very common in buying existing properties.
Lower closing fees: buyer saves on closing fees, including property transfer tax, appraisal costs, real estate agent commission, and notary fees.
Tax benefit on closing fees: when buying a newly built property, you are eligible for tax deductions on various closing fees, such as mortgage advisory fees and other supplementary expenses.
Lower energy bills: newly built homes are designed to be more sustainable and energy-efficient. They might feature high-efficiency insulation, windows, heating, and cooling systems, which can help reduce your monthly energy costs.
Buying a newly built home can result in lower maintenance costs, as you will not need to deal with unexpected repairs that may arise with an existing building, for example, fixing an older roof or replacing outdated appliances.
Customizable interior: a new build usually comes with a customizable floor plan tailored to your specific preferences and needs, giving you much more flexibility in designing your dream home.
Modern living experience: a newly built property usually has modern facilities and the latest design. You will be part of the new neighborhood that grows with the construction from the beginning.
Multiple options: when it comes to newly built apartments, contractors often sell various units, providing buyers with numerous possibilities. This enables you to find the perfect combination of size, layout, and preferred orientation of the apartment that suits your needs.
Increase in value quickly: if you buy in a good neighborhood, the property value can increase soon, bringing you extra investment return.
Obtaining a mortgage for a new construction project is similar to that for an existing home.
First, you must assess your financial capacity and establish your spending limit. The maximum mortgage amount for a new build can be 100% loan-to-value, and your income and expenses determine your eligibility for borrowing.
The next step is to search for a potential property and apply for a lottery. If the property developer picks you, you sign a purchase and building agreement. From this point, it is time to arrange a mortgage. You sign a mortgage deed at the notary and close the deal when your mortgage is approved.
Although the house is still under construction, you immediately start paying your mortgage after signing the deed. However, the mortgage payments will be lower at the start since the bank always keeps the funds in a deposit and only pays out if the developer finishes a construction phase. If the developer cancels the project, you do not pay any fees for withdrawing the mortgage offer.
Newly built houses can also be a good investment and yield potential financial benefits.
Save on 10.4% transfer tax: if you buy a new build for rent, the 10.4% transfer tax is exempted since you're buying a new property, "vrij op naam", which does not involve the transfer of ownership.
Lower maintenance costs and energy bills save you substantial money that accumulates over time. Besides, lower bills can lead to better ROI performance.
New builds are often more popular among potential tenants and can be easily rented out at a higher price. Modern furnishings and energy-efficient designs are in demand among tenants, who are often willing to pay more for a better quality of living.
The property's value increases as the nearby area develops further. The increasing property's value results in higher equity after the sale.
Buying a new build can be less stressful than competing in a bidding war for an existing property. Besides, you can secure a property more smoothly with an ideal location and a reasonable price.
Non-regulated rent: if your property falls into the private sector category, it's less regulated regarding the maximum rent limit and a rent increase. However, different variables can define the rent.
Buy-to-let mortgages work similarly to residential mortgages for new builds. The main difference is that you will need an appraiser to determine the value of your house.