There is a long-running debate over whether it is better to buy a new house or a previously owned one. However, what factors contribute to this divide? The more pertinent question is, is it okay to buy a new property or a resale property? – It’s a wise choice to connect with a estate agents in Lee before taking a decision as they hold the market knowledge at point.
However, each has its pros and cons, which may ultimately nudge you in the most suitable direction for you. Let’s take a look.
1. The Condition of The Property and Room for Personalisation
The state in which a developer hands a newhome to you stands in stark contrast to that of a home on the resale market. Newly constructed homes are turnkey ready the minute you get them.
Resale homes, on the contrary, may need minor or even major repairs before you can move into it- or lease it out to a tenant. Home renovations like this can often be quite expensive.
Therefore, if you want to make an investment with little upkeep, purchasing a newly constructed home is the way to go. There may be resale houses available in your desired area, and they may be worth considering if you do not mind a little remodelling or perhaps a total overhaul.
If you buy a newly constructed home and discover later that something isn’t to your liking, the builder may be willing to make changes after the sale has been finalised. If you purchase a new house, the weight of renovation or remodelling will be lifted from your shoulders.
Investing in a new construction might provide you peace of mind because of the warranties, guarantees, and even insurance that often accompany such purchases.
2. Time Constraints
Investing in a newly constructed property might be a gamble if you have a strict deadline for the purchase or occupancy of the property. If this is the case, keep in mind that completion deadlines are subject to frequent revision for a variety of reasons.
This is crucial information for anyone who has already started the mortgage application process. These agreements typically last for six months. So, if the construction of your new property runs longer than expected, you might have to negotiate a new mortgage. The current atmosphere makes this a particularly critical factor, since mortgage rates are only surging.
On the other hand, completion dates are less likely to be pushed back when buying a previously owned home. This is since solicitors are more likely to provide you a firm date sometime during the transaction rather than earlier.
3. Differences in Costs
Are pre-owned homes less expensive than brand-new ones? Not always! A variety of factors, including the property’s age, location, and facilities, all have a role.
As a general rule, the price of a property in a new development that is still in the building phase is lower than the price of a similar unit on the secondary market. Although it may be less expensive initially, you must factor in the price of repairs and updates.
In addition, if you’re looking to purchase a resale house, you may not have the same financing options that you would in a brand-new construction. You may have a limited time frame in which to make financial arrangements. There are, however, cases in which purchasers may benefit from a resale.
4. Effective Use of Energy
With the approaching EPC standards, many investors are seeking for properties that are energy efficient. Even though all brand-new construction must have an Energy Star rating of C or higher, many of these structures often do not come through. This means that some previously owned homes may actually be more energy efficient than the brand-new ones.
You shouldn’t expect that a newly constructed building has the maximum energy efficiency rating without first doing extensive investigation. During your search, you will undoubtedly come across new constructions with A ratings; they may prove to be the ideal investment opportunity!
5. Market Value
Although most homeowners believe they will always reside in the same property, many eventually want to sell it for various reasons. For his reason, keep in mind that a house that is 20 years old will not have the same resale value as a house that is just 5 years old.
To Sum Up
Ultimately, your unique needs and expectations will come together to influence how the above factors affect your buying decision. Whether you’re looking for new property or resale property in South East London, Seek out the assistance of agents as they can help you find the best options for your plans.