When the time comes to buy a property, a crucial question arises: should you opt for a new or old home? The choice is never easy, as each option has its own advantages and disadvantages. This article compares these two types of property to help potential buyers decide which best suits their needs and objectives.
Characteristics of new homes
There are many reasons why buying a new property can be attractive. Among these, a few criteria are particularly important. First, there’s the immediate comfort that comes with a brand new home.
In fact, living in a space that needs no work is a considerable advantage. The high energy performance of modern buildings should not be overlooked. Thanks to current standards, new houses and flats consume less energy, which not only benefits the planet, but also the occupant’s wallet.
Advantages of a new property
One of the many advantages is that notary fees are lower than for older properties. As a general rule, when you buy a new property, you pay around 2-3% of the total price of the property in legal fees, compared with 7-8% for an older property.
New-build property is also more tax-efficient, often with temporary property tax allowances or exemptions for the first few years after purchase. This can make financial sense for new owners.
- Recent energy standards guarantee high energy performance.
- Modern materials and facilities.
- Reduced notary fees compared with older homes.
Disadvantages of a new property
However, not everything is perfect in the new-build world. Immediate availability can be a problem, especially when buying off-plan. Waiting several months, or even years, before moving in can be a major obstacle for some buyers with imminent needs.
The price of a new home tends to be higher than that of a similar older property, mainly because of construction costs and increasingly scarce and expensive land, especially in urban areas.
The advantages of older property
Older property retains an undeniable charm. Buildings steeped in history and their unique character are attractive to many. So what are the advantages of older property? Let’s take a look.
Often located in central or sought-after areas, older properties are close to all the amenities you need, including transport, schools and shops. Immediate availability is generally guaranteed, so you can plan to move quickly after the purchase.
Advantages of an older property
One of the main advantages of these homes is their price per square metre, which is often lower than that of new-build properties. This gives access to more generous floor areas, ideal for families looking for more space.
Renovation enthusiasts will also see the investment potential: the opportunity to transform, modernise and add quantifiable value through clever modifications.
Disadvantages of an older property
However, there are sacrifices to be made. The constant upkeep that older properties require is a burden for some. We can’t ignore the regular repair and maintenance costs that can be incurred by old installations or structures.
Energy inefficiencies can weigh heavily on your budget if you don’t carry out urgent thermal improvements. These lower running costs, the tempting promise of new homes, then become a distant reality.
Common financial elements
Financial considerations often dominate property decisions. One of the overlooked criteria in buying new could include a lack of consideration for the total annual cost, despite facilitating finance such as the zero-rate loan.
In the case of older properties, the credit renewed by the savings made over a typical month with a lower price per square metre easily offsets the various additions made to improve the property.
Tax and financing considerations
When buying a new-build property, it’s worth taking a close look at the tax details: whether you’re looking at the tax treatment of a new-build property or the tax-free benefits available in certain tax-free zones. Planning ahead could make a big difference to your future tax bill.
Ancillary costs must also be taken into account. Reduced notary fees are a concrete and crucial example when calculating the initial budget required.
Compare your personal priorities
Ultimately, it all depends on what a future owner values. Some will give priority to economic satisfaction, while others will favour moves that are as finely tuned as a violin neck. There is no absolute right or wrong choice.
Choosing between old and new means first and foremost having a clear understanding of your expectations and the financial resources available in the long term.
