15 Dec Insights: New Builds vs Old Homes
Benefits of a new build
So why buy a new home? What is it about a brand new home that is so attractive? From first-time buyers to retirees, downsizers to growing families, there are numerous of reasons for purchasing a new build.
Many new build properties can be bought using government schemes, such as Help to Buy and Shared Ownership, these are designed to help first-time buyers get on the property ladder.
Most new homes in the UK are covered by a 10-year home warranty and insurance guarantee. The warranty protection provides a very comprehensive cover against a range of potential problems, including any issues with the construction of the home itself.
The high standard of new build homes, and the good insulation means that new build homes are much more energy efficient than old properties.
Disadvantages of a new build
Some people feel that new builds lack character, or think that they all look the same.
New build homes tend to make the most of the space available, and if your property has a garden, it will usually be smaller than older homes.
The service charge can vary depending on the location of your new build home, but the service charge and ground rent on a new build home tends to be considerably higher than that of older properties.
Advantages of an older home
Older properties have had the time to develop an identity, but you can still put your own stamp on the home. The character of an older home can be what makes it so unique. The history of home can value and can also be a huge selling factor.
Often the purchase price of an older property is negotiable between the buyer and the seller, with several factors such as the property condition, the survey and the speed with which the current owners want to move, coming into play.
Typically, older homes have more space and storage, which is especially appealing for growing a family.
Disadvantages of an older home
Chains and gazumping
You will often find yourself in a chain when buying an older property, which can cause delays if there are problems with other homes or buyers further down the chain. Putting an offer in on an older property also means you run the risk of being gazumped, which can be both emotionally and financially draining.
New build homes are built to high specifications, and often include high-performance locks, burglar alarms and smoke alarms at standard, which older homes may not have.
Maintenance and renovations
The cost of renovations, extensions, decorating and general DIY work will all add up, and often older homes are not as well insulated or energy efficient, so that is something to take into consideration when looking at homes, as it will increase your monthly outgoings. The general upkeep and maintenance of an older property tends to be higher than that of a new build as well.
Cost – new vs old
New research has surfaced comparing the cost of one-bedroom flats in every London borough. Older, pre-owned one-bedroom homes cost on average £542,715, while a one-bedroom new build flat costs an average of £679,671 – almost £137,000 more.