Buying a new build home versus buying an existing home

When the time comes to start searching for your first home you will have to decide whether to purchase a newly built property or an existing older home

Buying a new build home versus buying an existing home

Everyone will have their own reasons for choosing either a new or older building when purchasing their first home, and ultimately it’s about finding the home that’s right for you. Each type of property can have its advantages and disadvantages; here we’ve listed a few of the things you should consider.  

Reasons to buy an older home  

 
  • Neighbourhood – Most existing properties are situated within established neighbourhoods; it is quite possible for you to get to know your neighbours before you even move in. The area may also have an established Neighbourhood Watch action group in order to maintain the safety and well-being of occupants.  

  • Character – Older properties have had time to develop a sense of character and a unique history that you will become a part of. Perhaps you are a fan of the previous owner’s handiwork in the garden, or you simply prefer the idea of living in an older house with period features into which you can add your own mod cons.  

  • Making an offer – With an existing property what you see is what you get. If you have done your homework with a home survey and read the Energy Performance Certificate (EPC), and you are happy with their findings, then you can bid on a property with confidence. This is not the necessarily the case when you buy off-plan. However, new-build homes are supplied by law with an EPC and many carry an National House-Building Council (NHBC) warranty.  

  • Negotiating power – With existing properties the purchase price is negotiable between the buyer and the seller. The mutually agreed price may be influenced by consumer demand, the general condition of the property as reflected by the survey, and the desire of the owners to sell up and move on. 



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Reasons to buy a newly built home  

 
  • Personal taste – Moving into a newly built property gives you a clean slate to fit your first home with the tiling, flooring, decorating and appliances suited to your personal tastes. This is sometimes not quite as easy with an existing property, as the home will have been decorated and fitted out to suit the tastes of the current occupants; consequently it may prove harder to start afresh without considerable work.

  • No moving chain – Purchasing a brand new home means that you are not part of a moving chain that could threaten the completion date of your property purchase. This eliminates the stress and uncertainty that can sometimes come with purchasing an existing property. However, if there are any delays in completing the building work this will potentially affect when you can move in.  

  • High specifications – Most new builds come fitted with modern, high-specification appliances and materials, usually more so than older properties. New homes must comply with the latest building regulations, ensuring the most up-to-date heating systems and insulation. This is often particularly attractive to first time buyers who simply want to settle into their first home rather than worrying about potentially expensive DIY and maintenance costs.

  • A new community – Moving into an established neighbourhood may not prove an attraction to some first time buyers. You may be more excited about a new home on a new estate, with the opportunity to make new friends as part of an emerging community – you are also likely to find other first time buyers who you can share experiences with.  

  • Energy efficient – It is said new-build properties are six times more energy efficient than existing, older homes, generating around 60 per cent less carbon dioxide (CO2) emissions per household. Living in an energy-efficient home can therefore save you hundreds of pounds a year on energy bills.

  • Warranties – Around 80 per cent of new-build homes carry the NHBC 10-year warranty, so the quality of your new home is automatically insured against the problems sometimes associated with new builds. NHBC is the standards-setting body and leading home construction warranty and insurance provider for new and newly converted homes.

  • Leasehold – New-build homes tend to be sold for longer leaseholds, meaning you do not need to spend money renewing a lease. This does not affect freehold properties, which are usually houses.   

The standard of new properties in the UK has never been better, while the market for buying existing properties currently offers first time buyers the chance to get on the property ladder with significantly lower house values. Weigh up the pros and cons and make the decision that’s right for you.

Last reviewed May 2016.

Comments

  • Mary Miller says...

    posted on 03/09/2012 22:04:21

    An intelligently written and yet easy to understand article offering both pros and cons effectively. Helpful comments giving much food for thoughts.

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