Whether to buy a new or established home is a question asked by many people. Lots of people would prefer to buy a brand-new home and enjoy all the mod-cons that come with a comfortable contemporary home.
After all, if you were given the choice of an established older home which is likely to need major renovations in the future or a brand-new home that is move-in ready which would you choose?
For most people, buying property, is the single biggest investment that they will make in their lives. This is why it is so important to think about the long-term value of the property rather then the convenience that the home offers. Buying a new home requires a lot of careful consideration and shouldn’t be a decision made from the heart.
It is almost always better to invest in an established property than to invest in something new.|
More home buyers now buying houses in need of renovations
New homes and apartments are not always good investments
The value of real estate lies in supply and demand. When you buy a property with something a little different, with additional features or aspects, like a second garage, unusual architectural aspects or extensive solar energy installations, you’re usually buying something with higher intrinsic value.
Once completed, the off-plan properties, are often valued at less than the buyer paid. This is upsetting for the buyer, but it’s a clear indicator that the property was not a good investment.
Why people like period homes
Contemporary homes that appeared so sleek and modern when they first went up, are soon simply out of date. Period homes, on the other hand, never seem to date. This is why they’re in such high demand and hard to come by.
Consider the beautifully crafted art deco houses of the 1920’s. They are not easy to replicate, and it would probably cost a fortune to do so with results that may look fake. On the whole, period homes are larger and they’re more solidly built.
Property is all about the land to asset ratios
New housing estates tend to go up on the outskirts of the city, a long way from the CBD. This is why they are cheaper, the land on which they are built is not worth half as much as the land in more popular suburbs.
Established homes are typically located in the inner-city suburbs, and here the land is a lot more valuable. In addition, established homes are often built on large tracts of land, allowing the owners to capitalize on its value, by extending the home, subdividing the property and much more.
So, while that modern apartment may seem like the best investment at first glimpse, an established property may be your better investment option.