Whose buying new homes?

Know your customer, they say, and you know how to make money.

Very true. Knowing who is most likely to buy from you and what they want from you is an essential part of any business. 

And this is as important in the property development sector as any other. As when you understand the type of people who want to buy your properties – and what type of property they are looking to buy – then you know more about how to plan, build and market your developments.

There are some obvious perks to buying new builds, which make them attractive to all buyers throughout the whole property lifecycle from buying, to moving in and then living/owning the property:

Firstly there buying process is much more certain, yes there may be delays in the dates but there is no chain, buyers aren't going to be gazumped on the price and there is more certainty about the build quality and information about the property. Then once buyers have moved in there is no rush to have to redecorate and remove the rotting avocado bathroom that has been there since 1976. Your property is fresh and clean. One of the biggest benefits is knowing your seller doesn't just disappear after purchase and will resolve any snags and that there is a warranty provider guaranteeing the build. Owning a new property is generally cheaper too, as there is less maintenance and new homes are more energy efficient meaning that energy bills are lower.

But dig deeper into these universal advantages and you start to find many nuances within the new build market. This is because you don’t just have one type of buyer and different groups of people want different things. This is true of customers in any sector, but it is particularly pertinent when it comes to buying property.  

Because, obviously not all people want the same thing from a new build. For example, what suits the young family excited about buying their first home, is completely different to someone who is buying purely for investment purposes.

The fact that different types of property attract different sets of people is an important consideration when planning, building and marketing a new development. Equally, the location of your development will often have a major bearing on the type of buyer you are most likely to attract. So, let’s take a close look at the four main buyer types for new homes:

Investors: buyers looking to earn income from renting their new home

Downsizers: typically older buyers whose children have moved out and moving to have less maintenance and more time to enjoy retirement

Upsizers: growing families or couples starting a family that need more space than where they are living now

First-time buyers: those getting onto the housing ladder for the first time

Over the next four weeks we’ll explore what each of these groups want and need and what it means for developers over the next few weeks.