Buying Real Estate: Choosing New or Old ?
Finding the right house is not a destination that can be reached without a path paved with questions. The funding, the location, and the required area, as well as the type of property, whether new or old. Major disparities favor one of the options over the other, and the decision will have to be based on the most relevant factors for each acquirer in his circumstance. Let’s go over the factors that might influence your selection.
Delivery time: advantage over the old
For purchasers in a hurry, buying new is not an option. It will take at least a year for you to be able to move in, according to the plans. If the structure is already under construction, the delay will almost certainly exceed six months.
Positioning as early as possible is advantageous in the event that the purchaser participates in a real estate program that allows him to reduce the purchase price through the promoter’s economies of scale: in the lot of housing to be built, some benefit from a greater calm, a better orientation, a larger ground, etc. To say the least, the best-served will have to wait more than a year after the sales deal is signed.
However, there is no surprise in the old one: the timeframe between the signing of the sales agreement and the turning over of the keys is three months unless there is a negotiated arrangement. The choice between the two options will be based mostly on the buyer’s living circumstances, such as whether he is living with a third party or anticipating a joyous occasion, for example.
The price: the old has the coast, the new defends itself
The announcement of a new home’s pricing is quite exciting: it will often be priced 20 to 40% more than an older home of the same type and location. Is it a case of theft? Not necessarily, because the new one offers both benefits and financial rewards, narrowing the difference significantly.
Yes, for those with the tightest finances, buying used will prove to be less expensive, and the option will become clear immediately. You’ll have to look twice if you’re on a tight budget. A new purchase qualifies you for lower notary costs (about 4%), as well as a two-year property tax exemption.
Finally, a new home will have a cutting-edge thermal system that is (usually) more cost-effective than an older home. Furthermore, no renovation or construction charges are anticipated for a long time.
The scale must be examined on a case-by-case basis, but it turns out that the price difference is frequently repaid thanks to significant savings in the years following the purchase.
The condition of the property: new is unbeatable
This may seem self-evident, yet it is worth emphasizing. By purchasing in the old, the real estate may suffer from the ravages of time, whereas the new will exhibit itself in its finest light.
However, if the new property turns out to have poor craftsmanship or flaws that would detract from the joy of the relocation, this rule may be broken. The main distinction is the existence of a ten-year guarantee, which allows the buyer of a new building to demand that all structural and finishing parts be restored to their original state for a decade. The buyer of old real estate does not have the same benefit, and must settle for a “as is” purchase. While some concealed flaws may be repairable, it is preferable to be able to assess the state of the property and its major components (which might be costly if a replacement is required) prior to signing the compromise!
Add to that the fact that the old may no longer meet current requirements in terms of layout. Work is thus to be expected, a cause of inconvenience and major expenditure – which, quite simply, may be part of a value or interest in the object plan.
The location: the old one offers more possibilities
If locating the desired home entails purchasing in a certain community or even on a certain street, the buyer has every incentive to go old! In reality, the supply is 10 times that of new dwellings, allowing for a closer proximity to the selected area.
The promoters’ new initiatives frequently create new districts in the making, distant from tiny stores and other amenities, which are unlikely to make people dream because of their location. When it comes to the purchase of a construction plot, the market offer, rather than the purchaser, will determine the outcome. On this criterion, the former gets a good point!
Result: there is no right or wrong situation
Other factors, such as the cost of living in the area, may also be considered. The old one may thus cost more in terms of energy bills since it does not match current requirements, but it will be simpler to make profitable – because it is less expensive to begin with – if the acquisition is primarily for rental purposes. In all situations, the owner is responsible for replacing the equipment (boiler and cumulus), which is a potentially large expenditure that must be considered from the time of purchase: the new one gives more years of peace of mind. The same principle applies to the roof and joinery.
Tax benefits offered to investors can compete with the advantages of new in terms of taxes, in addition to the cheaper price of the old. The acquisition’s goal will allow for arbitration, depending on whether the buyer prioritizes personal comfort or the purchase’s profitability.
Finally, real estate is a question of personal preference. A new structure will not appeal to everyone; some will perceive it as cold and lifeless, while others will regard it as a cocoon in which to dress up in their image. The ancient and its charm are still being imitated, sometimes in the form of beams and chimneys, and sometimes in the form of the quirky side of the structure. It’s a never-ending battle between emotion and logic.
The new, like the old, might be appealing to purchase, either financially or in terms of comfort of occupancy: it is essential to design a project that is tailored to the goals and needs of each individual. Now it’s your turn to play!