Should you be buying a new built property or an existing one?
Are you undecided on whether you should buy a new build or an existing home? This article will guide you through the advantages and disadvantages of purchasing a new built property and purchasing an existing one. So that you can decide which is a better option for you.
What are some advantages to buying a new built?
- Finances - You will be able to benefit from government Help to Buy scheme and shared ownership plans as they are only available on new built homes.
- No property chain – If the house is a new built, you will be the property's first owner. So there will be no property chain.
- Energy Efficient – New built homes are built as per the latest building regulations. This means that they will be a lot more efficient when it comes to energy consumption. This translates into lower bills for you.
- New Home Warranties – Usually, new built properties come with a warranty, which you will not get if you are buying an existing property.
- No need for repairs or renovations – Older properties will in all probability require some renovations.
What are some disadvantages to buying a new built?
- Tightly packed properties – New built properties are usually built to ensure maximum profits. For property owners, this means that their new homes will be less spacious as compared to older properties.
- Specified conveyancers – The developer of new built properties is likely to insist that you use a solicitor or licensed conveyancer recommended by this. You should not fall in this trap. That's right! Your solicitor or licensed conveyancer should ensure that the contracts are in your favour and that your deposit will be secure. A solicitor or licensed conveyancer tied to the property will not only be required to serve your interests but also the developers. Therefore, get an independent solicitor or licensed conveyancer.
- Leaseholds – Some new built properties are sold as leasehold. That is a significantly different form of ownership as compared to freehold. Make sure you are aware of what leasehold is before purchasing one.
As compared to new built properties, if you buy an existing one you will be dealing with a different set of issues.
What are some advantages of buying an existing property?
- Variety of designs - if you don't want your next home to have a modern design, buying an existing one is a good option. You will come across various designs, all more mind-boggling than the previous.
- Space – Older properties are built more spaciously. This means larger rooms and a bigger garden as compared to new built properties.
- Negotiations – As older properties are likely to need maintenance, this can be a negotiating point for you.
What are some disadvantages of buying an existing property?
- Property chains – If you purchasing a property which is part of a property chain, the conveyancing process will get a little bit more complicated, and some uncertainty may be introduced.
- Energy Efficiency – The older the property is, the less energy efficient it is likely to be. This translates into higher bills for you.
- Renovation & maintenance – When buying an existing property, you may want to take up some renovation words. You will also most certainly require some maintenance works carried out. This will lead to you incur additional costs.
In deciding between buying a new build compared to an existing property, it mostly depends on personal choice. However, there are things highlighted in this article that you should be aware of when purchasing new built properties and existing properties.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
We would love to hear what you think about this article and how we could improve it. Please do let us know. However, we shan't be able to reply to your specific questions. If you have a question about a document, please contact us.
If you have noticed a bug or a mistake on this page, or just want to give us feedback, we'd love to know. Nothing is too small or too big. Send your message on this feedback page.