Buying A Home – New Or Used?

Buying A Home - New Or Used?

Buying a property can be both scary and exciting, and the choice will determine the person’s living space for at least a few years. From an investment point of view, a house purchase should be a positive investment. The big decision is whether to buy a used home or a newly constructed residence, and there is much to consider before making such a choice.

Second hand homes

With pre-owned homes, the buyer and seller can negotiate a variety of things. All the major appliances might be included in the deal, as well as a possible home warranty package. It is a good idea to check all appliances that are included in the sale, and ask to see any warranty agreements that are still active. Most people will continually improve their property, and one of the main advantages of going used is inheriting these improvements. The second hand house market is large, so by spending some time viewing, one should eventually discover the ideal residence.

Price negotiation

With a used home, there is a chain involved. The seller will be moving into another property, and the move must be coordinated. The seller may well have a house in mind, but cannot purchase until the existing residence is sold. This means a buyer can have a significant advantage, so a price negotiation is more likely to happen. The timing is important in order for the chain of buying and selling to work for both parties.

A new property

With a new house, there is no urgency on the part of the seller, who is the builder of the property. Yes, they want to sell the house, but are not dependent on this for any other reason than business.

There is an element of the unknown is a used residence, so a new property is a more attractive proposition, with the building in first class condition, ready for occupation. This is one more benefit to add to the checklist to buying a new home. One mustn’t forget that furniture and appliances will have to be included in the budget, and these items can be very expensive. A new property will depreciate slightly after it has been sold, although this is negligible.

Fittings and fixtures

Things like curtains, blinds, and garden equipment are all items a new home buyer must include, so if the budget is tight, it might be an idea to take out some additional finance. These might be supplied if the property is pre-owned, another advantage of second-hand home purchase.

Show homes

Buying a new property allows the person to sample the ambience of a show house. Builders will always have display homes that are tastefully decorated, allowing one to experience the home before making the decision to purchase.

Whether one chooses a new or used home, the new living space should be something that enhances the occupant’s lifestyle, and with so many styles to choose from, there’s something to suit everybody.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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