New build property is "over-valued"

New build property in the UK is "extremely over-valued", it has been claimed.

Paul Holmes, chief executive officer for Firstrung, stated many developers are still working on valuations based on 2007 and 2008 prices.

It is important they begin to adjust costs of accommodation that has been recently built to be in line with the current market, he continued.

Many are offering buyers looking to get their foot on the property ladder a five per cent discount, but this is not nearly as beneficial for the consumer as reducing the rate by 20 or 25 per cent would be, Mr Holmes stated.

"They are making it look as though they're doing first-time buyers a favour when they're not," he said, going on to add "it's a con, quite frankly".

House hunters who want to purchase a new home as an investment may wish to consider using an international money transfer system to buy an apartment in Brazil.

According to Tom Falcao, general manager of the Embassy of Brazil's Tourist Office, many Brits are acquiring new developments in the Latin American country and making money by renting them to holidaymakers.