The Pros and Cons of Buying New Developments in Central London

Pros and Cons of Buying New Developments in Central London

 

London has always been a hotspot for real estate because of the everchanging and constantly growing developments that continue to shape Central London's landscape.

There is something for everyone in London. Want an expensive penthouse at the top of a high-rise building? London's got you covered. Looking for something a bit more cost-effective and liquid? Then there are endless options to choose from there too.

When it comes to buying new developments, you need to consider a plethora of things before taking the plunge. 

In specific, Central London can be an even more diverse landscape for investment opportunities and it has the ability to skyrocket the potential earnings of would-be investors. 

In this article, we will be listing a few of the main pros and cons that can help shape your decision whether or not you want to invest in new developments in Central London. 

What Are the Advantages of Investing in New Developments in Central London?

There are a multitude of enticing benefits available to people who are willing to invest in new developments in Central London

For one, upkeep is way less of an issue. With new developments, there are specific rules and regulations that the people living there will have to follow. Furthermore, if any repairs are needed, the development manager will usually take care of them. This can save you a whole lot of headaches, as well as being extremely lucrative. 

Another pro for new developments is that security will usually be much superior than its counterpart. New developments will usually have security measures such as numerous CCTV cameras surrounding the premises and a team of trained security personnel. Again, this can save you the hassle of coming up with security measures yourself, which will be a significant burden taken away from the investment process. 

Last but least, you'll also flat out pay less on specific expenses for new development houses. The property developer fulfils all transaction costs, and you'll also completely negate transfer duty payments. This all goes without mentioning the fact that you will be exempt from paying tax if the property is not fully completed yet, but a tenant has already moved in. 

Overall, many lucrative, stress-relieving benefits come with investing in new developments in Central London, and getting involved can be a great decision. 

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Are There Any Negatives to Buying New Developments in Central London?

Despite the overwhelming benefits that investing in new development brings, there are a few cons that you will need to look out for. 

The primary negative to investing in new developments in Central London is that you may find that many of the units take a while for a tenant to call their home. If this is the case, you'll be left paying for numerous units with no profits, and the levies for these units are also likely to increase. 

A secondary reason that is a negative for new developments is that the finished product may not be the exact same thing you had in mind when you saw the plan. This can be one of two reasons, it could either be because the actual development changed from the original plan (which is more than likely going to happen), or you had a different vision of what you expected. 

Are New Developments in Central London Good Investments? 

Taking into account the previous above sections in our article, we will now discuss what the overall consensus is about investing in new developments. 

New developments can be an incredibly profitable investment that can carry little risk if you know what to look out for. 

All of the negatives we listed can be negated by ensuring that you only invest in new developments which have trustworthy and proven development managers. This way, you reduce the risk that the development will turn out drastically different from the initial plan and that the properties are high-quality with no expense spared and no cut corners. 

Take your time and research who's in charge of the properties development before making any decisions, and if the development manager is reputable, then investing in new developments in Central London could be one of the most competent investing opportunities out there. 

For more information about new developments in Central London, feel free to visit our website. We have all the latest property developments in London for you to browse and compare. 

Good luck.



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