Buying a new home vs buying an established home? This is a question we constantly get asked, the truth is, there are advantages and disadvantages for both!
We’ve pulled together a list of what we love – and less than love – about purchasing an established home and purchasing a brand new home.
An Established Home
Established homes tend to have an architectural beauty, charm and individuality about them – characteristics that are certainly difficult to find in brand new homes. They also bear a mature garden, which means there’s no need for costly landscaping, fence fitting or time spent nurturing a young, dependent garden.
Older homes are located in older suburbs, where the streets are lined with large, fully grown trees and established nature strips – a site that, in a new home, could take decades to come to fruition. Older homes also have larger blocks, meaning a bigger backyard and more space between your neighbours.
When purchasing a pre-loved home, buyers also tend to have more flexibility in their negotiating power on the price of the home. There’s also a good opportunity for savings/investment. However, if you’re lucky enough to save a bit on money buying an older home, it does beg the question – what do you need to spend money on to update or revote the house? Fixing up older homes can often be very costly. Renovations could range from simply replacing a toilet suite to needing an entire new kitchen. Then there is always the unknown, because you never really know what will need fixing (and the costs associated with it) until you move in.
Plus, there are a range of inspection and residential reports that you should get when buying an established home. These include building inspection reports, pest inspections etc, and range in cost.
A Brand New Home
There’s nothing like the luxury of moving into a brand new home. No maintenance or renovations are required because everything is brand spanking new; the paint is fresh; the floor is unscathed; and the kitchen and bathrooms are modern are functioning properly. There’s also the comfort of knowing that the products and components of your new home are still under manufacturer’s or builder’s warranty, so if something breaks you can get it fixed quickly and easily. And did we mention that new homes are guaranteed asbestos free?
The orientation of a new home is also likely to be much better compared with an older home. These days, houses are built to maximise sunlight in the right rooms at the right times of day. Not only does this boost the amount of natural light in your home, it also helps to ensure that you use your air conditioner less in summer and your heater less in winter, saving you money in the long run! New homes are also much more energy efficient than old homes. They use current, energy-saving materials, technology and appliances to reduce the impact on both the earth and your pocket.
While new suburbs tend to be in a more remote location, they are also better planned with nearby schools, shops, parks and other community and recreational facilities. Although, as mentioned above, it can take years for these suburbs to develop the natural beauty of an older suburb.
When purchasing a new home, buyers do not usually have much negotiating power on price and have less opportunity to for savings/investment. In saying this, if you’re an investment buyer, a new home can be quite appealing due to the depreciation benefits that can be transferred to tax benefits.
New homes also aren’t entirely complete just because the build has finished. There’s usually landscaping to be done, proper fences to be built and sometimes a driveway to be paved. Due to space restrictions, new homes are also built on smaller blocks, meaning they compensate the backyard to ensure a reasonably sized home. On the plus side, if you shop around, you should be able to find affordable, value-for-money house and land packages in a suburb to suit your needs!