Buying a property? New Build or Old House?

Posted on November 8, 2016

It’s one of the dilemmas faced by many home buyers, and the debate between old versus new never gets tired. Whilst most of the time the decision between opting for a new build or a period property is down to personal preference, there are many reasons that can be highlighted to defend or damn the purchase of either. Almost every house hunter is driven by value for money, and exploring the advantages and disadvantages of each before you even begin your search can really help you determine the basics of what you are looking for.

As a leading estate agent in Sunderland, we have a portfolio jam packed with old and new properties, but the question is, should you go for something old or something new?

Second-hand homes win on space

New build homes are getting more and more compact as developers look to make the most of every square foot, and on average new builds are actually 20% smaller than properties constructed in the 1970s with saleable staples like parking for two cars being just one of the things sacrificed today.

In comparison to house builders in Europe, UK developers build the smallest homes due to the lack of regulation regarding size. There is no lower limit on size for new builds in the UK, which means developers can opt for maximum density and minimum space.

Chain-free and easy

The dreaded chain can cause untold issues for buyers in the UK, and is a primary reason for delays with exchange, that’s why the prospect of a chain-free property buying experience courtesy of a new build is so appealing. As long as the house is constructed, your move in date can be scheduled in as little as a month, which is a breath of fresh air for those blighted by what appears to be a never-ending chain.

Cheaper to buy but there’s a catch!

Due to the homebuyer schemes currently available from the government, it is more affordable to purchase a new build, especially if it is your first home. Under Help to Buy, thanks to the loan provided by the government, buyers need to save just 5% of the property’s value as a deposit, which is a far cry from the 20% or more usually demanded when accessing finance to purchase an older property. In addition to the low deposit, the Help to Buy scheme also guarantees no interest for the first five years on the 20% government loan amount, which can be paid back when you sell.

Whilst new build homes can be cheaper to buy and more accessible, the investment potential of a new build can often be far less than a second-hand home, after all who would want to pay over the odds for a used new build when they could buy a shiny new one that has never been lived in?

Old property or new build, you decide, and our team of Sunderland estate agents can help you make the decision that is right for you, your family and your budget. Contact us today for further assistance.