Old House vs. New House: Which Is Better to Buy?
Buying a house opens up new possibilities and endless choices you have to decide on. One of those is choosing between an older home or something newly built. Like everything else in this world, choosing between an old or a new home has their advantages and disadvantages. Before choosing, it’s essential that you know these so that you can make an informed decision.
Considering buying a new home?
What you need to know:
Pros of buying a new home:
- Everything is new. From the doors to the roof, everything is fresh and new. You don’t need to worry about structural issues, as everything is built in adherence to current building codes.
- Modern living at its newest. If you love minimalist and modern homes, a new home is right for you.
- Awesome additions are sometimes included. A new home can also include a swimming pool, home theatre, and other additions that otherwise would be expensive to add to an old home.
- Little repair or maintenance needed. Because the property is newly built, you don’t need to worry about big repairs or maintenance.
Cons of buying a brand new home:
- It may be located further out of town. Because more popular locations are already filled with homes, new homes are built further out of town.
- Benefits. If you’re a first home owner and buying a newly built home, you are eligible for First Home Owners’ Grant and a discount on stamp duty.
- Higher repayments. New homes can be more expensive depending on location and property type, which could make it harder for you to meet repayments.
- Most of your money goes to repayments. Higher repayments mean that most of your income goes to your mortgage. Because of this, you don’t have extra funds for other important expenses or in case an emergency arises. Also, you will have less money for savings.
- Additional costs in installing paths and driveways. Most of the time the yard and pathways are left to be done by the owners so that they can do it to their tastes. However, this can add to your expenses.
- Unpredictable growth. Properties in more remote areas may be slower to grow in value.
- Possible delays. You may experience some delays such as turnover of the property, negotiations due to sudden price changes, and the like. This can lead to more expenses and delay in moving into your new home.
Considering buying an older home?
What you need to know:
Pros of buying an older home:
- Locations are closer to amenities, friends, and family. Older homes were built at a time where land was abundant. Necessary amenities such as markets, transportation, and schools are built near them.
- Lower repayments. Established homes are usually more affordable than newly built homes, so you can meet repayments more easily.
- More money for other things. You can use your money for other things such as emergency funds, savings funds and the like.
- Established front yard and driveway. You just need to maintain it, which costs less than building a new one.
- You physically inspect a property. Unlike in new houses, the only thing you see is the model, not the house itself. You can only inspect it after you buy it. In older houses, on the other hand, you can inspect them and check everything before buying it.
- Easily comparable. Prices of older homes will be easier to gauge because of comparables—prices of similar homes recently sold.
- You can add more value. You can renovate and add more features in the property to add more value, in case you want to sell it in the future.
- Aesthetically pleasing. If you love the look of period homes, older homes are the one for you. But always remember to inspect for pests and structural issues.
Cons of buying an older home:
- Potential structural issues. Because of its age, it’s possible that an older home has structural issues so make sure to have an inspector check up on an old property you have your eyes on.
- More maintenance required. You need to constantly check for things needing repair or replacement, which you won’t need to do in a new home.
- Caveats can complicate things. Caveats on the property’s title can affect your plans for the property. Consult with a solicitor to run over the title and contract of sale so you can be sure before you buy.
Whichever you choose, make sure that it’s something that aligns with your needs and priorities. If you need more advice or would like to look at houses, we’re only a call away to save the day.
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