Both old homes and new builds can have their advantages and disadvantages. If you’re unsure whether to buy an older home or a newer home, it could be worth weighing up some of these factors.
Cost of purchase
New builds tend to be a lot cheaper to buy than older homes. Many new homes are designed cheaply so that they can be sold affordably. A new build could be particularly cheaper than an older home if you’re a first time buyer – the government’s Help to Buy schemes (and recent Starter Home Scheme) can save buyers huge amounts of money on the price.
When buying an older home, there’s often a previous owner trying to make a profit off of the sale. Very old homes may have gained a lot of value simply due to their sense of history. Older homes also tend to be in more prime locations, also bumping up the price. The exception is of course fixer-upper homes – these are old homes in poor condition that need a lot of repairs, however they can be very cheap to buy.
Running costs
New builds also tend to be cheaper in the long run than older homes. Many modern homes are built to be very energy-efficient – often with the best insulation possible and sometimes even with solar panels fitted to the roof. This can save owners a lot of money on their energy bills. On top of this, new builds are less prone to wear and tear. There may be certain snags (a snagging inspection is worth investing in), but you can usually cover these with the home’s warranty (which an older home doesn’t have).
Older homes are generally not very energy-efficient (unless a previous owner made improvements). Maintenance costs are also likely to be very high. On top of repairing wear and tear, there could be a greater risk of problems such as mould, flooding and pests simply due to the older and lesser quality style of build. Make sure that you have enough money in your budget to pay for these maintenance costs.
Time frame
Buying a home is often always a lengthy process. However, it can be a lot more lengthy when buying a new build – especially one that hasn’t already been built. The average home takes eight months to build and you may have to wait several months for construction to start. In other words, a new build is not recommended for those that need somewhere to move into straight away.
Buying an older home can still take a process of several months, but is generally a lot quicker. Problems may arise if the property is in poor condition and you cannot find a mortgage lender that will to approve your loan, however there are mortgage lenders that specialise in such homes.
Location
Older homes tend to be built in better locations. They’re often more central and found in established neighbourhoods with a strong sense of community.
The majority of new builds end up being constructed on the outskirts of a town or city because this is the only space available. They may be further away from shops, schools and public transport links. Without a history, such neighbourhoods may also have less sense of community (although you may be able to establish this yourself by creating your own community events).
Character
Older homes often have a sense of character that newer homes cannot compete with. Original historical features and quirky additions from previous owners may help to tell a story. In comparison, a new build may feel slightly soulless.
Of course, you can build a home’s character yourself over time. This guide on how to add style to your home shows you how to personalise a new build. In fact, a new build could offer the ability to fully customise a home to your image, which leads onto the next important factor…
Customisation
With older homes, you may be limited as to how you can customise them. While there are plenty of ways to decorate a period property, you may be restricted when it comes to renovations – particularly if your home is a listed building.
New builds can allow a greater amount of customization. If the home hasn’t been built yet, some developers may even allow you to make personalised decisions on the layout and structure of the building. Some developers even allow you to choose from a variety of home plans (although this level of customisation may come at an added price).
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