NEW CONSTRUCTION V/S OLD HOUSES-WHICH IS A BETTER INVESTMENT?

                   
           NEW CONSTRUCTION V/S OLD HOUSES-WHICH IS A BETTER INVESTMENT?

So you are looking to buy your first or next investment property, but the question that comes to your mind is,” Should I opt for a new construction or go ahead with an old property?”

Whether it is new or old both have their own advantages and disadvantages and before you finalize your choice we are here to help you weigh both pros and cons and then make a better decision suiting your needs.

 

 

 

IF YOU ARE BUYING NEW PROPERTY:

1.       MODERN FROM THE VERY BEGINNING: New constructed homes are built by keeping in mind the new/modern taste. The features will include elements like open floor plans, stainless steel appliances, and higher end finishes. There won’t be any requirement for renovations at all or any upgrading with electrical wiring etc.

 

2.       NO HIDDEN FACTS OR SURPRISES: What you purchase is what you will get. There will be no sudden home inspection bringing forward foundation problem, basement drywall, wiring problem etc.

 

3.       LESS INITIAL WORK TO DO: New Constructed property is “Ready to Move In” state. You don’t need to worry about any initial effort, or managing the project, or managing the contractor at all. Just buy the property and move in without any hassles.

 

4.       LESS MAINTENANCE: With new properties one can save a lot of time and money on maintenance for years to come.  The average life span for major appliance is roughly 10 to 15 years so you are good to go with the brand new appliances for atleast 10 years.

 

5.       LOWER ENERY COSTS: Newer homes are usually more energy efficient, which can ultimately save you around 30% in the utility bills.

 

6.       TAX SAVINGS: Property tax bills are calculated based on the prior year’s assessment, and for the new buildings, the property was nothing more than empty lot a year ago. It could take up to two years for the property’s assessment value to catch up to its current market value, and during that time, your tax bills will be markedly lower than those of older homes in your area.

 

 

IF YOU ARE BUYING AN OLD PROPERTY:

1.    MORE PERSONALITY: Older houses have their own “Character” and “Story” that the new properties do not have. They can feel cluttered but they have their own unique features that will  make you fall in love with them. They have their own one of a kind elements like retro finishes, antique look, and original fire places, all this can never be achieved in a new property.

 

2.       FULLY GROWN TREES: The older houses have a matured landscaping. You’d love to have the shade of some fully grown trees in your yard.

 

3.       LOWER INITIAL COST: When you buy an older home, you can easily get a great property at a lower price and you can also negotiate price with the owners whereas you cannot negotiate at all at the price with the developer in case of buying a new property.

 

4.       ACCESS TO BETTER LOCATIONS: You can get a spot at one of the desired neighbourhood that has already been developed to a great point which cannot be achieved in case of a new property.

 

5.       ABILITY TO DO MORE MARKET RESEARCH: When buying a home in an already established area, it gives you an opportunity to get more accurate data in terms of price, rental demand, historical trends and much more.

 

Editor: Neha Charan