New-build properties 'not the most profitable'

Posted: 10 Dec 2009 11:38:48 GMT

Property buyers should not buy a new-build if they want to make the most money when it comes to selling their home, a new report suggests.

The research published by lovemoney.com states that the biggest gains from the housing market will be for people who avoid buying new homes.

Typical properties have risen in value by 349 per cent over the last 26 years: in comparison new-build homes have gained value more gradually, at an average of 6.3 per cent per year.

However, Paul Homes, chief executive officer of Firstrung, says that if homebuyers take advantage of the discounts that are currently available on new homes, then they can be more profitable.

He goes on to criticise lovemoney.com by stating that thinking about homes as a means to make money has got a lot of people in a mess when it comes to property.

Mr Holmes adds: "Property is not a game, but a place to live and we all need to remember that."

According to the National Association of Estate Agents, five house hunters are currently registered to each available property.

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