It’s a question every homeowner has pondered: Is it worth buying a new building or a renovation property? In this article, we will weigh out the pros and cons of each option to help you decide. A new build is a property that has been recently constructed. A renovation property is one on which the existing building or other facilities are undergoing or have undergone renovation. Both types of real estate come with their respective advantages and disadvantages.
*Collaborative Post
It is crucial to understand the pros and cons of property type before you research solicitors to help with conveyancing in Andover. Depending on your budget, time constraints and a plethora of factors, one option may be much more beneficial than the other for your situation.
In this article, we will compare the pros and cons of both investments to help you reach a final decision. It’s also worth factoring in legal fees when weighing up your options, as average conveyancing costs in the UK can add a significant amount to your overall budget, depending on the property and transaction complexity.
Pros of Buying a New Build
New Builds Are Immediately Ready After Buying
One of the most appealing aspects of a new build is that there is little left on the agenda after buying it. All you need to do is move in and unpack; everything else about the property is ready to live in. Waste no time refurbishing the building to a habitable state, simply get on with living there or renting it out to tenants.
New Builds Are Modern and Energy Efficient
Newly built properties are obviously more modern in style and functionality than older buildings in need of renovation. This means you will have up-to-date technology already integrated into your home. Additionally, all new builds must comply with the current UK building regulations, meaning the properties will be more energy efficient, saving you money in electricity bills.
New Builds Come with New Build Warranties
Buying a newly built property grants you a new home warranty. The details of these vary from property to property but they are similar in nature. They offer you financial protection for any defects with the property related to the workmanship for a fixed amount of time. This can save you thousands of pounds and stress in your first years as a homeowner, especially if you rent the building out.
Cons of Buying a New Build
New Builds Are Expensive
It is no surprise that buying a new build is far more expensive than buying an older property for renovation. On average, a new build will cost around 20% more. Some people may not be able to afford to buy a new home outright, and the idea of taking out an even bigger mortgage is a scary one.
New Builds Offer Limited Creativity
New build homes are too expensive for the average homeowner to refurbish to their liking, so they are often stuck with the builder’s design. This limits the extent to which you can personalise the property. For those who will not settle for any less than their dream house, finding a satisfactory new build can be a great challenge.
New Builds Tend to Be in Areas with Higher Taxes
Due to the modernised infrastructure in newly built neighbourhoods, tax costs for homeowners are often higher than in older residential areas. Most newly built neighbourhoods are built with loans taken out from the city, which are then paid back by these higher taxes. On top of already steep buying prices, new builds continue to prove expensive even after ownership is secured.
Pros of Buying a Renovation Property
Renovation Properties Can Become Whatever You Want
Not only do older builds possess a nostalgic character, but they also offer homeowners the freedom to turn the property into whatever they want. Renovation allows you to fit the house to your suit your personal wants and needs, making it feel more like a home. You are not stuck with the builder’s intentions.
Most issues that might exist within a renovation property can be fixed too. You rarely have to remove something or start again. You might be faced with a lot of work, but you can prioritise your tasks to get it all completed in the right order. Start by taking care of essential tasks like mould removal or roof repairs to secure the structure of the property. You can then start thinking about transforming the property to match your needs and your vision of your dream home.
Renovation Properties Offer Great Potential Return
Though an older property would not be worth as a new home immediately after buying, the value will increase dramatically after renovations are complete. Not only does this mean you can charge higher rent for tenants, but also that you can make a profit on the property if you eventually decide to sell the house. On the other hand, new builds will almost certainly decrease in value over time, making them far from ideal if you are buying as an investment.
Renovation Properties Are Usually in an Established Community
Older properties are likely to be surrounded by neighbours who have lived there for some time already. Due to this, there tends to be a general sense of community in older neighbourhoods, which is very pleasant to move into. In a similar sense, older properties are often surrounded by more existing amenities, such as shops, local restaurants and friendly bars.
Cons of Buying a Renovation Property
Renovation Properties Require Extensive Maintenance
Unlike with new builds, you must begin maintenance immediately after an older home for refurbishment. It will take heavy construction to modernise the property, and there may even be some minor repairs to be done. With renovation properties, it can take a long time before the home is comfortable to live in. If you intend to rent out the property, this cannot be done until all renovation is complete.
Renovation Properties Are Less Modern
Not as modern as new builds, older homes are not as effective at conserving energy. Not only does this lead to higher bills, but also may affect the efficiency of household appliances. For example, an older model of oven in a less energy-efficient house may take far longer to cook a meal than a later model in a new build.
Technologies incorporated into every modern home may be absent from an older build.
It Is Easy to go Over-budget on Renovation Properties
Unlike with new builds, you do not know exactly how much you are going to spend on a renovation property. Homeowners sometimes run out of budget when the costs of refurbishment exceed the original estimation.
In this case, you are left with an unfinished property and no more capital; one of the worst situations to be in as a property owner. Be extremely careful to set aside an excess in your budget in case this happens.
Weighing up the pro’s and con’s of new builds and renovation properties…
There are extreme benefits to buying either a new build or a renovation property. It all depends on what you hope to achieve with the house and whether you intend to purchase it as a home or an investment to rent or sell.