Buying New Homes Versus Old Homes
Houses in London are a mixture of modern and vintage architecture, a lot of buyers are debating whether they should buy a new house or an old house.
If you are one of them – don’t worry, we will help you decide.
Let’s look at the pros and cons of buying new homes.
1. 10-year warranty for new properties.
All new homes are covered by a 10-year home warranty and insurance guarantee. This means if anything goes wrong – leaky roofs, faulty foundations, etc. It is the builders’ job to fix them, and you do not have to pay a dime. What’s more, if you buy an off-plan property (before it’s built) the warranty will ensure that you will get your money back if the project fails.
2. They are built for modern living.
New homes are built to fit younger generations. They are built to the latest technology with new furnishings. New technology will not only save you money but will also make living easier. For example,double and triple glazed windows will save money from energy bills. According to a report by Home Builders Federation, owners of new houses spend around £629 on utilities, which is half of the average old homes’ bills.
3. It’s a good investment
Investors tend to invest in the future, not the past. As more and more millennials are renting houses, it is logical for investors to invest in properties that are built for the young generation. In light of ‘generation rent’, built-to-rent properties are on the rise, these newly built properties are built exclusively for renters. That’s why new homes certainly have a larger and younger target audience.
1. You have to pay a service charge
Buyers will have to pay around £100 – £200 service charge to maintain the property. For example, outer walls, corridors, pumps. Although old homes don’t have these charges, buyers would still need to save up to maintain the property.
2. Smaller rooms and lack of storage
As the demand for new properties grows over the years, houses are built smaller to squeeze more properties in. New houses have smaller rooms, and a lot of them don’t even have a garden, let alone backyards.
3. Risky to buy off-plan properties
Although you have a 10-year warranty on newly built properties, there is no guarantee that the property will be built on time, there could be delays, or the whole project could even close down. Even if it’s completed, there are no promises that everything is sturdy and well-built. If it ever comes to that, buyers would then need to go through the hassle of finding a new property, contacting the builders to fix all the problems in the property.
Old houses may be old, but there is a certain value to them. Here are the pros and cons of buying an old house.
1. Amazing architecture
Old houses have elegance hand-carved details on the exterior as well as on the inside. They are not churned out identically like the new properties, they were built with more thought and character. Their elegance and sophistication are not something you would find in new houses.
2. Bigger rooms
These homes were built a few decades ago where land was still abundant, thus old houses have more spacious rooms.
3. Central Location
As the property prices have surged over the years, it is increasingly more expensive to live in central London. So, newly built homes are mainly located on the outskirts of London. Old homes are mainly in the central area as the land prices weren’t as expensive back in the days. If you don’t want to travel 50 minutes to central London, old properties might be your answer.
1. Higher Cost of Repairs and Maintenance
Over the years, old buildings have gone through decades of wind and rain, it’s safe to say that it doesn’t function as perfectly as it was in the beginning. They are more prone to breakdowns and damages. In this case, buyers have to make sure they are able to cover any repair and maintenance costs.
Old houses are not covered by the 10-year warranty, so it is not the builders’ problem if there is any damage. We advise buyers to save up enough money to cover repair and maintenance cost.
2. Having a smaller group of target customers.
If you are investing in old properties, you might have a smaller market.
According to a survey by the English Housing Survey, a fifth of the UK population is living in privately rented properties, and the main age group is 16-34. Young adults are looking for houses that are modern and new because they suit their lifestyle. Old houses, which were built decades ago, might not. With that in mind, old properties might not be suitable for the main group of customers who are looking to rent.
3. Old houses are generally built with outdated materials and technology
Back in the days, technology was not advanced. Old houses don’t normally have double glazed windows or even electric stove. And they don’t have much storage space as well. Buyers might need to remodel the house with modern furnishings and with the latest technology. That is another fortune to spend.