The premium you pay for a brand new investment property to lure a higher quality of tenant could soon have an extra incentive.
Traditionally, a new home will attract more reputable tenants, who are looking to pay more in rent for a property with all the mod-cons. What’s more, these properties are attractive for you as investors as they are more energy efficient than older properties.
As an investor, you can soon expect ultrafast broadband to be added to the pros of a new property. The Home Builders Federation (HBF) and utility provider GTC have agreed a UK wide deal for HBF members to supply this superfast broadband in all new build properties.
GTC’s UltraStream300 fibre network gives property owners the opportunity to give their customers internet speed of 300Mbps. This will rise to 1Gbps when higher speeds are required.
In addition, investors and subsequently tenants can benefit from a fixed line phone, cut-price SKY TV and a choice of broadband packages.
The provision of this superfast broadband will go a long way in increasing the attractiveness of new build homes to househunters and investors, according to Peter Andrew, HBF’s deputy chairman.
Andrew noted, ‘broadband speed is seen by many homebuyers as being absolutely essential to the way we live and communicate today. Housebuilders have the challenge of ensuring their new homes keep pace with future advances.’
He also wants people to receive, ‘a service that exceeds demands today, but importantly futureproofs new homes for the greater demands to come.’
Remember the Basics
If you are an investor looking for a new build property, don’t get caught up in its amenities without doing the basics first. Remember to research the area, looking at typical rents and transport links, to establish a target market.
What’s more, you should take the time to find the correct landlord insurance property. You will also want to seriously consider rent guarantee insurance. A newer property will command more rent, therefore your prospective tenant could struggle to pay their bills. A thorough referencing and credit check will go a long way to making sure you secure a hassle-free tenant!