House hunting can be a daunting task. You have to consider many factors, including cost, suburb, size and number of rooms and bathrooms. Before beginning your search, one question you should ask is: Should I purchase a new house or an old one? Each option offers benefits and drawbacks. Let us look at both.
Building A New House - The Positives
New houses come with many advantages. They will require less maintenance, and most likely, you will not need to replace any major appliances for the better part of a few years. Another advantage of new homes is that they tend to be far more energy efficient. In Australia, they have introduced a 6-Star rating minimum requirement, which achieves a higher level of thermal energy performance.
New homes are often part of newer estates, which can often mean that amenities are more accessible. When you buy a new house, prior to moving in you will make sure it has all your needs, which can spare you from having to renovate later on. However, it is not all positive…
Building a New House- The Drawbacks
In the current “buyers” Perth market one of the biggest drawbacks are the costs of building, as you generally cannot negotiate on the price.
Another disadvantage of building vs buying is that new homes are sometimes built in generic, “cookie-cutter” styles, lacking in the architectural detail and charm of older character homes. Additionally, alterations you request can quickly add up – newly built homes are rarely more affordable than their older counterparts.
In fact, according to First Home Buyer, you should consider a variety of costs you will encounter when building a new property such as cost of renting / accommodation whilst building, landscaping and upgrading from basic the fixtures and appliances to suit your tastes and requirements.of the house.
When looking for an older, existing home, you have to consider a different set of conditions.
Buying An Established House - The Positives
Older homes boast many advantages such as a greater ability to negotiate on price. However, the financial benefits of buying an established home go beyond your initial ability to negotiate.
George Raptis, director of Metropole Property Investment Strategists’ Sydney office, advocates strongly for buying an established home. First, Raptis points out that when you purchase a brand new home, you are paying for the developer’s marketing costs and essentially “handing your first few years’ worth of capital growth straight to the developer”.
With established homes, you can benefit from capital growth immediately. Raptis also points out that renovations or modernisations can yield a great return: “We have seen clients turn a $20,000 refurbishment into an extra $60,000-plus in capital gains … something that is simply not possible to achieve with new property.”
Buying an established home also means that you will be living in a suburb that has existed for years rather than in a newly created subdivision. These existing suburbs tend to have better amenities in terms of public transport and shopping. With older suburbs come established parks and bigger blocks, which are great for families.larger trees and larger lots. Expect to have more privacy from your neighbours. With all these advantages, it might be tempting to overlook the disadvantages of buying an established home.
Buying an Established House - The Drawbacks
Existing homes have many benefits, but there are some important factors you should consider. they also may have issues. It can be difficult to find everything you are looking for in an older home, so you may find that you want to renovate the home in order to tailor it to your desired style. With an older home, you will need to take into account potential upgrades to appliances such as hot water systems or air conditioners and r maintenance costs are likely to be higher. Depending on the condition of the included appliances, you may spend some money on upgrades. oOlder homes also tend to be less energy efficient too. Solar panels are becoming more popular in established suburbs now which is something to look out for when you are house hunting.
It can be difficult to find everything you are looking for in an older home, so you may find that you want to renovate the home in order to tailor it to your desired style.
Buying New vs Established: Weighing The Factors
So, how do you decide what is right for you? Here is a summary of all the factors you’ll need to consider when deciding whether to buy a new or an old home:
Style – If you have a modern style, a newly built home might be the right choice for you. It will come equipped with the most modern appliances and save you in renovations and replacement costs upfront.
Location – Are you seeking a home in a specific suburb? Would you rather live closer to the city or beach? An established home might give you more options.
Budget – How much money can you afford to spend on your home? New homes can be quite a bit more expensive to build, but their older counterparts may be costly to renovate. If you are on a budget it is likely that an established home will yield significant savings. Plus, because there are more properties on the market, you will have better negotiating power.
Inspections – Purchasing an existing home can mean that you will have access to records of past issues, but there can still be issues that are not visible to the naked eye. An inspection is crucial if you are purchasing an older home in order to avoid costly expenses.
Ultimately, the decision to buy an established home or a newly built home is a highly personal one. The first step toward determining the best choice for you and your family is to figure out your priorities. If you are looking for an existing home, check out our current listings or find an agent.