A hot topic in real estate is if building a new home or purchase an existing one is a better option. There are pros and cons for each option, and it is best to consider these when making your decision.
Pros and Cons of New Homes
There are a great number of advantages that come with buying a new home.
Some of the key aspects include:
- Choosing the layout and design instead of being stuck with what is available on the market.
- New more modern and energy saving designs (there are now new laws that say new homes must meet a certain standard of energy efficiency). These energy efficiencies can also save you a lot of money over the long term as heating and cooling bills are reduced and your home is more comfortable to live in.
- The quality of a newly built home, when build by a quality builder, is better.
- Lower maintenance than an existing home where things have already had a lot of wear and tear.
- Builder warranty means that if something breaks it is covered.
Typically the purchase price of a new home is higher. However, many factors can affect the price of a home including location and supply and demand. There are some house and land packages that are significantly cheaper than buying an existing home due to their location being a little further away from the city center in newly developed areas. New townhouses built off the plan can also be a cheaper option in some cases as the developer turns a home on one block into two, three, four or even more homes as townhouses. This may be good if you don’t like a big back yard and all of the maintenance that a big yard has. But is you do like gardening and want a big garden then maybe a new home is not for you.
Pros and Cons of Established Homes
Existing homes are usually located in neighborhoods or communities that are already established. This means that there are others living around you. This can give you a sense of safety or security. Depending on where you buy, existing homes that are not in the inner city area tend to have a large garden area. This is great if you enjoy gardening. Older homes tend to have well-established gardens and larger trees, if you like that kind of thing. There are a lot of established homes that are in the classical period style and have character. If you like period homes then existing homes may be the way to go. Usually, an established home will also have an established fence around it whereas with a new build you will need to check if a fence is included or not. Fences often add significant value to the property.
Existing homes that have not been renovated recently are not going to look all that appealing, unless you like out dated decor, that comes with wear and tear. One of the major disadvantages of an older home is the maintenance. Everything deteriorates over time, expect to be replacing appliances (hot water service, stove, etc..) and repairing things (windows, the roof, doors etc…) as time goes by. Older homes may have existing structural issues (building standards were not that well developed in the past). Plumbing can also be an issue, the plumbing installed back in the day would not be as advanced as now and this together with established trees and their tree roots can break and get into pipes (causing a blockage). All these things can be costly, I am not sure if you have hired a tradesman lately but they are hard to get quickly and the good ones (and even the bad ones) charge like a wounded bull (are super expensive).
Deciding on if you should buy or build is not easy. Each type of property has its own set of advantages and disadvantages. In the end it really depends on what your wants and needs are.