The process of purchasing a house is a long and tiring one. It is one thing to decide on buying landed property, but another altogether when weighing the decision of purchasing either a new one or an older property.
Below are some of the advantages and disadvantages that you should consider when trying to make this decision.
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The Pros: Purchasing a New House
Lower Utility Fees
The utility fees in a new house are usually cheaper than that in an old building since most new developments come with energy-efficient solutions. That is more money saved in the long run.
Built to Your Specifications
Companies such as Building Designs Newcastle can build the house exactly to your liking so that you can save on the renovation costs later on. You can even consider hiring an interior
designer to go with this service.
Modern Design & Layout
New houses are designed and built in a modern town layout, which would be more pleasing to the eyes and have bigger spaces for your furnishing.
Safety Features
Newly built homes have to come with fire retardants in their building materials, such as in the carpeting and insulation.
Some places would also require builders to install smoke and carbon monoxide detectors into the house, so you will always be alerted at the first hint of danger.
Mortgage Financing
Often, builders have mortgage affiliates or subsidiaries which can tailor their financing options to your needs such as interest rates and loan fees. The procedure to procure this home would be more straightforward.
The Cons: Purchasing a New House
Higher Purchasing Price
A new house will likely cost more, especially if it is a bare unit which will need renovation and furnishing later. You might need more money to purchase just the home.
Unclear Appreciation
With no financing history to look back on, it can be difficult to tell whether a property is going to keep increasing in price or plummet.
Landscaping
Unlike established communities where mature trees are already shading the town from the hot summer heat, it takes years and years before the landscaping of a new township can mature and grow by itself.
Waiting Time
Developers often start promoting the new developments before its due completion date. You may purchase right now but will have to wait until the construction is complete before you can move in.
Unknown Community
It is hard to tell what the community is like when the neighborhood has not even been fully built yet. No one knows anyone else, and you will not know if you are going to like it long-term.
The Pros: Purchasing an Old House
Depreciated Value
A house as old as 25 years old or more would be harder to sell due to its appearance, wear, and tear and much more, leading to a lower price. You will not have to pay a fortune for an old house.
Bigger Yard
Land was cheaper in the past, and builders had the freedom to build on large land lots. This
means that you are more likely to own a garage as well as a larger piece of land.
Attention to Detail
Select homes in the older times were built by hand by experienced craftsmen – almost to the point where one could call the house a piece of art due to its sturdiness even after decades have passed.
Optimal Location
Resale homes tend to be located in established communities. This could mean better access to work, school, and other lifestyle needs.
Character
If you visit older townships and neighbourhoods, you would quickly realize that these homes have a character of their own, just as the neighbouring houses do.
In comparison, you might find that new houses tend to have a cookie-cutter design – most of them somewhat similar.
The Cons: Purchasing an Old House
Higher Insurance Cost
An old home is more likely to have problems than a new house, and so it makes sense that these properties would have a high premium to insure them.
High Upgrading Costs
You may want to upgrade the home components to greener, more energy-efficient options.
That would be a lot of work to do, and the cost can build up quickly.
Little Flexibility for Space & Rewiring
In an old home, the wires and space are already well segmented. A significant amount of money will be needed if you want to remove the load-bearing walls in the house for better airflow or larger spaces.
Smaller Houses
The yards and pieces of land may have been bigger back in the days, but the same does not apply to the size of the homes.
Except for estates, most older homes are smaller than modern homes even though the family size was larger and many have fewer bathrooms.
Smaller Storage Space
The term ‘bigger is better’ did not hold true in the olden days. Built-in closets, storage rooms and garages were made in a much smaller size than they are today.
Some older houses might even have a carriage house for horses in place of a garage.
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