Buying New Builds From the Resale Market

Sophisticated investors should also check out whether there are good deals in the resale market for recently completed new-builts.  There may be some owners who have decided to sell, for whatever reasons.

How Recent is Recently Completed?
By recently completed, I am referring to new-builts that are less than a year old. Such apartments would still be very new and still be under the developer's warranty.  The fact that they are new buildings and still under warranty gives the purchaser some peace of mind.

Through some simple investigative work, you can find out which are the recent developments through several ways.

1) Go through the websites of the reputable developers and check out the recently completed developments.

2) Go through listings on resale pages, like rightmove.co.uk or zoopla.

3) Go take a walk on google maps, street view, and you may spot developments that are nearly completed or about to complete, in locations that you think have the potential

What If You See A Development You Like?

Well, you can contact the sales and marketing agent to find out more information about the development. Given that the development is still very new, the agent would be able to provide all the information, as if you were asking about an off-plan development.  Most important for overseas investors would be to verify the status of the warranty. 

One Example of a Recently Completed New Built 
Recall, we have bought into a development called Brickmakers which is on Cable Street.  We found a listing of a one bedder for sale.  According to the advertisement, it is a one bedroom apartment on the 3rd floor, with asking price of £425,000.  This unit is 484 sq ft, so this translates to £878 psf.  Of course, we were happy when we saw this because we had bought similar units for much less.

Cable Street
We are very hopeful with our Brickmakers units.  Here is why. Consider this snapshot of the area using Google Maps.

The Brickmakers Apartments are located at the 4-sided orange star, just north of Swedenborg Gardens. Recall my blog post on IJM Land's Royal Mint?  That luxury development is located on Royal Mint Street, a mere 5 minute walk west of Brickmakers.  I have marked it in a red oval.  About a year ago, it was selling for a whopping £1,200 psf.  It sold out.  Why?  That place is a stone's throw away from City of London - you can easily walk to work.

Next, consider the properties on Leman Street, which I have marked out with an orange oval.  The properties there all go for at least £1,000 psf, if not more.  Apparently, Leman Street is a rather prestigious address.

Then, just south of Cable Street is a development that is soon to be launched, called London Dock by St George's of Berkeley Homes.  This will be a very presitigious large-scale development that has the potential to change the entire area!  I don't think the prices will be cheap, and I'm waiting for them to launch this development so that I can blog about it!

Happy investing!