Getting a real estate property, one’s house, a land or an apartment, brings about an immense satisfaction. However, this can be a stressful process regarding the choice of the property to purchase: should you buy a property which is newly built or rather resort to an old property to renovate? . if you are looking forward to purchasing a property, you have probably asked yourself this question. Anyway, there are pros and cons to be considered in order to make a good decision.
First of all, let’s discuss the issue of real estate.
What is a real estate?
A real estate property is immobile by definition. Compared to movable property, it is property that cannot be moved. So, it could be a piece of land, a building or part of it, an office, etc. There are generally three characteristics according to which real estate properties can be classified. In particular, we distinguish buildings:
- By nature: the ground and any building fixed to the ground (land, buildings, etc.)
- By destination: these are buildings permanently attached by the owner.
- By the purpose to which they apply: real property rights such as usufruct, easements or land services.
Another possible classification of real property takes into account its status. We thus distinguish new real estate from old real estate.
What do we call new real estate and what are its characteristics?
In general, any building construction with a relatively recent completion date is considered new housing. These are mainly buildings completed less than five years ago. On the other hand, even if one tends to consider only new constructions as new housing, the legislation of some countries makes a clear distinction. In France, for example, the legal definition of “new housing” distinguishes three types of new housing. These are the new completed housing units, the new off-plan housing units and the new renovated housing units.(source)
- The new housing completed: A new housing completed is a new housing in every sense of the word. The construction of this dwelling must be fully completed on the day of purchase or renting. The property must also not have been previously hosted. And, as it is completed, the completed new housing is immediately available to the client unlike the off-plan housing which is not completed.
- Dwelling off-plan: A dwelling off-plan is a dwelling that is not completed. But it is still considered new since it is a new construction. Through a contract of sale off-plan, the seller grants the ownership of the constructions to the buyer as and when they are realized and the latter consequently pays the costs associated with them.
- The redone new dwellings: these are dwellings that have been subject to certain number of works generally explicitly mentioned in the texts. These works include, among other things, the raising of a building, works that have made the majority of the foundations new, elements that determine the resistance of the property.
Benefits of acquiring New Real Estate
Acquiring new real estate obviously gives you significant advantages..
- Compliance with the latest technical and environmental standards: The professionals who are responsible for the design and construction of your new home will certainly go for modernity. Wherever possible, they will adopt the most modern facilities and the most recommended techniques while ensuring your comfort. It would be almost impossible to benefit from this advantage if you opt for an old property.
- Sustainability: your new home gives you the satisfaction of having acquired a sustainable heritage..
- Low maintenance costs: with an old house, you can be faced with very unpleasant surprises (bad plumbing, infiltration problem, etc.) which generate repair costs. A new construction saves you such surprises, since it has new equipment and materials.
- Financing facility: Financial institutions (banks and micro-finance) are often more willing to support “new real estate” acquisition projects..
- The opportunity to make a good rental investment: New housing is much more popular in the market, which reduces real estate vacancies.
Despite all these advantages, choosing a new property is not free from disadvantages.
Here are some disadvantages related to the acquisition of a new property:
- High prices: Acquiring a new property is relatively more expensive than acquiring an old one.
- Much more time to move in – for example, if it is off-plan accommodation, delivery is further delayed because the house is not even finished.
- The risk of poor workmanship compared to what was expected: still with regard to off-plan sales, it may happen that the professionals involved in the construction do not do exactly what was expected.
Given the implications of a new property, what would the option of an old property confront you to?
What is an old property, what are the advantages and disadvantages?
Unlike new real estate, a building is classified as old when its construction is more than five years old. It also takes into account buildings that have already undergone a change of ownership following a sale, an inheritance, etc. This type of property also includes advantages and disadvantages.
Some advantages of an old property
- Not too expensive: An old property is more affordable than a new one even if you will have to make renovations.
- Availability of the offer: there are many more antique goods on the market and this factor allows you to have more options. You have the opportunity to acquire your property in the area of your choice for example.
- You can renovate your property: by renovating your old property, you can completely adapt it to your taste.
- Possibility to move in quickly: Unlike off-plan selling which requires a long delivery time, you can have access to your property much faster.
Some possible disadvantages to consider when buying an old property
- Unpleasant surprises causing too expensive renovations: It may happen that you come across unpleasant surprises after the purchase. For example, you may find that the facilities are less resistant than you thought, or even at the end of life. Such a situation would cause you to spend much more than expected to renovate your home, or even exceeding the cost of a new property.
- Very high maintenance costs: Maintaining an old asset is much more difficult as the facilities are older and therefore less durable than those of a new property.
- Styles of construction often not modern.
In short, both new real estate and old real estate have advantages and disadvantages. Before acquiring real estate, you will have to carefully consider all the sides in order to make a choice that takes into account your tastes but also your priorities.
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