When it comes to buying a house, some prefer period charm and eclectic detailing, while others seek out efficient appliances and that pristine, move-in condition. We've mapped out the advantages and potential investment concerns of both. Here’s what to look out for when navigating the 'old house, new house' debate.
Old house, new house: which is the better investment?
The advantages of buying a new build
Sparkling and untouched, newly built homes offer several distinct advantages for buyers. Some come equipped with the latest technology, such as energy-saving features like smart appliances, solar panels, app-controlled security features and even electric vehicle charging stations. As well as looking sleek, these details can save sizeable amounts on utility costs over time. When it comes to efficiency, new builds generate 60% less CO2 emissions per household.
New homes also offer the advantage of providing a clean slate for interior décor, as well as appliances. Buyers may be able to choose from personalized wall colours, room layouts and other add-ons, and look forward to making their own distinctive mark once settled in.
What's more, it’s often easier to get a mortgage when buying a new build. This is because developers sometimes have an in-house financing department, which can help ease the process and cut out extra parties.
Another point to consider when choosing between an old house and a new house is that you’ll face less competition from other buyers for a newly built area of housing, and are less likely to become part of a moving chain.
The advantages of buying an old house
While new homes offer energy efficiency and warranties, there are also plenty of advantages to taking on mature properties. One of these is location. New developments tend to be contracted on the outskirts of town, or in areas with ongoing construction. By contrast to the new house, older houses are usually available in central, established neighbourhoods with a high walkability score. This is particularly important to millennial buyers, who are driving up property prices to the tune of 40% in highly walkable areas. Buyers often have greater negotiating power with existing properties as well. Prices can be influenced by property condition and consumer demand, giving room for negotiations.
Yet it’s not just location to consider when deliberating over buying an older house. Character is what draws many buyers to these homes. Historic properties offer distinct architectural details like decorative pillars, exposed brickwork, or intricately designed ceiling roses and crown moulding. While you can design a new build to order, it won’t have these period details or the history behind them.
Investment concerns to keep in mind
Energy-saving appliances aside, it's worth noting that desirable new builds cost on average 20% more than a similar older home. However, it's hard to tell how these values will hold over time, especially as newer houses tend to be built on smaller lots or in untested locations. Old homes hold some risk as well, usually costing more in the long run due to repair and maintenance issues. It's of vital importance to research all options before making a decision using current property insights.
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