Last Updated on March 15, 2024 by Jawad Ali
When it comes time to make your first real estate investment, there are several crucial considerations to make. These could involve deciding on the kind of property, locating an appropriate neighborhood, and figuring out your entire spending limit. So, should you purchase a new or an existing home? This is yet another crucial factor that you should think about. We’ll attempt to resolve the argument between purchasing a new home vs. an older home in this blog. It is necessary to understand the factors according to which you will decide it.
Factors to Consider Before Investment
Budget
Yes! Your main priority should be your budget. You must always bear in mind how much the property you plan to purchase will cost. If you have the option to take a loan, you will undoubtedly do so if you feel comfortable doing so.
You can also see that a new property will cost more than an older one of a similar size. Undoubtedly, the property’s location, size, and quality will affect how much it costs. If all of these remain the same, you will need to spend more money on the new property than the old one.
The old one is ideal for you if you have a financial problem and are unable to manage more. On the other hand, you ought to get a new house when you are
Cost of repairs
This argument usually applies when you are considering older real estate. You frequently need to repair a lot of items in an old house. When everything seems to be going so well, you might still wish to upgrade and fix a lot of things. In this case scenario, new properties located in new societies such as Capital Smart City in Islamabad or Lahore will offer brand new homes – hence minimal repairs.
However because it is new and unoccupied, the new property typically doesn’t require repairing in the initial years. If you purchase an older property, you must first determine the cost of repairs before comparing it to a comparable new property of equal size and quality. You must calculate this by using professionals or you risk being defrauded. Watch out for this.
Design Opportunity
Although it initially seems to be of little significance, it is. What chance do you have to add new features and a distinctive design? The likelihood is higher if it’s a brand-new home, apartment, or other piece of real estate.
The opportunity is constrained though when it comes to an ancient flat or piece of property. Even so, adding features and designs to a historic building is still possible, but it requires extensive reconstruction. And the price is high. So remember that.
Utility Relationship
For some, it is currently a major problem. You are aware that Bangladesh has not had a gas connection for many years. Nobody is certain of the connection date.
That implies that if you purchase a new apartment, home, or other structure, you won’t receive this connection. But if you were to acquire an older home, it would be to your advantage. Thus, it is unquestionably advantageous to you. In the event that you decide to purchase a new apartment, you must also examine the satellite and internet connection availability.
Benefits of New Property
A new home, building, apartment, or other property offers you a lot of advantages.
Less Repairs
Initially, adding many features and innovative things doesn’t require hiring repairmen, making upgrades, or spending more money. Most significantly, it has the most recent and upgraded technology, which is what everyone wants.
Sustainable Houses
The new homes and apartments are also constructed in an environmentally sustainable manner. It has also been demonstrated that new construction produces less carbon dioxide (CO2) than an older building. It is therefore good.
Better Infrastructure
The modern-day benefits of improved infrastructure include security and protection. Nearly all newly constructed homes are covered by builder’s warranty insurance. They take the appropriate action because there isn’t a significant flaw or structural problem.
Benefits of Old Property
The advantages of an older home over a new one are numerous.
Beautiful Area
When you choose a house, the majority of older homes are already situated in beautiful neighborhoods. On the other hand, the new apartments are typically spread over the town’s outskirts. They aren’t right next to the ongoing work either.
Land Value
the land value of the older home or property is higher than that of the younger one. property that has previously been used for construction is more valuable than property that will be used for fresh construction. In some cases, the value of the land exceeds the value of the structures.
Higher Resale
Another crucial truth is that older properties typically have higher resale values. Nevertheless, the new
In the end, depending on your finance and budgeting, and personal needs, you can choose either type of property for investment purposes.
