When it comes to buying a new home there is a lot to consider. Do you want a historical beauty with unending character, or a home with clean corners for an uncluttered lifestyle? For some the choice is easy, but when you’re torn between two worlds it may be a bit difficult to decide. Sadly in the end you’ve got to choose: old or new.

Buying an old home

Buying older buildings or properties not only means inheriting its history but also all its faults. Some buildings might have been well maintained as it got passed down from owner to owner, but some may be in a state of desperate home renovations.

Pros of buying old property

• Older homes have a character and history you may not be able to find anywhere else.
• Come with opportunities to renovate and add property value.
• Typically older homes were often built to be long lasting and well insulated. Modern homes tend to be built as a single brick wall (for the outside) and then the internal frame is steel or wood. Older homes often have double-brick walls.
• Homes that have been around for a while tend to be near established infrastructure like transportation, schools and hospitals.

Cons of buying old property

• Depending on the age of the property you might be inheriting old wounds that might be endearing at first but will grow to be annoying, including creaky floors and loud piping.
• You might not be able to use some of the government help Australia offers to first-time property owners.
• Renovations may quickly become costly if you don’t budget or make an action plan.
• You may have high ongoing maintenance costs.

The purchase price of older homes depends on the location of the property. It is possible that you may find a rundown dinky house worth more than a new modern home, simply because the value of the location is worth more than the actual structure. So when buying a home, old does not always equal cheaper. But the same can be said for newer homes as well.

Buying a new home

Purchasing a new home or building something from a plan means that you have the chance to qualify for the First Home Owner’s Grant. Much like a shiny new toy, a new house comes free of blemishes and it typically comes with modern utilities.

Pros of buying a new home

• If you are a first time home buyer, then you may qualify for several government grants and schemes.
• Typically these grants require the property to be a new or a substantially renovated home.
• Usually with a new home, there is little to no recurring maintenance needed to keep the property in good shape.
• Since new homes are built with modern technology and equipment, it may have lower energy ratings and be built in an eco-friendly fashion which can reduce ongoing costs.

Cons of buying a new home

• No house is perfect, even the brand new ones. Being the first one living in the new property you’ll be the one discovering any potential problems or faults.
• Believe it or not, there is usually a limited supply of brand new properties available. This means that you will find yourself competing with several other people for the property.
• If you are buying off a plan, there may be a risk that construction runs longer than expected.

How much you pay for your new house depends on where it was built. Much like old homes, the biggest driver of price tends to be location. This is why regional houses are usually much cheaper than houses in capital cities. For example, you may find a new house far away from the CBD to be more affordable than an 80-year-old house near the metropolitan area.

Whether you plan on buying a new property or an existing one, reach out and let’s talk.

Source:Maria Gil