Land & new homes
It's no secret that new build properties are more expensive, but could they save you money in the long term?
Old homes are known for attractive features, quirky character, and an airy proportion. We have long been attracted to the quaint feel a property with a history has, even with one previous owner, so it has been a major shift to see an increase in the interest of new builds of late.
The change in the cost of living, post pandemic labour and material costs, and the reassurance a new build brings in the form of up to date compliance and the 10 year warranty they come with, is appealing to the masses. But what is the real cost difference between a new home versus an old home? Let's take a look.
Photo credit: Sandersons UK (Kingfisher Close, Canterbury)
New homes
Energy efficiency is a huge attraction to new builds. Modern building techniques give way for superb insulation, advanced double glazing and a modern, efficient heating system.
Builder's Warranties come as standard with any new build. These are usually for 10 years, so if anything goes wrong, the builder has to fix it. It is worth bearing in mind however, that after a year or two these guarantees tend to taper off.
Your own personalisation in buying a new home can see it be completed with your choice of bathrooms, kitchens, carpets and flooring if you get in there early enough. This could save you a great deal of hassle and it means all those things are ready for you when you move in.
Having no chain attached to the property, you'll be in a position where you can keep the chain shorter than if a seller was looking for their property, as with an old build. This means there is less chance of a sale falling through.
Incentives such as upgrading your fixtures or fittings, or covering your stamp duty can sometimes be thrown in with your sale as a way to appeal to your interest in new builds.
What about new build cons? Well, there are several.
Your value for money may not stretch to space, as new builds can come up smaller than old builds. So whilst you have the reassurance of modern build, you may not, in the long term, be entirely happy with the lack of space, ability to expand and storage.
Premium prices that developers often charge will disappear as soon as you move in. Similarly to a car, the cost of your new build will be slashed the moment you step inside. This can make it unlikely that you'll make anything on it in terms of monetary value in the short term.
Build quality can see problems arise with things like minor leaks or a door that fails to shut over a carpet and whilst these can initially be ironed out in the snagging process, you may find they reappear over time and some can be costly.
The outward cost of buying a new home is always more than an old. This is due to the most up to date building methods, materials and systems that have been installed along with the price it costs to hire the builders and labourers to complete this.
Photo credit: Sandersons UK (The Old Bakery, Hamstreet)
Old homes
It is not easy to reproduce the character an old build has when building a larger development. All those pieces of personality you want to see in your home are very likely going to already be there when you buy it, so those original features already in prominence will not need to be budgeted for.
Any issues can be seen by having a survey carried out. The benefit of this is that any issue present, will certainly arise, giving you peace of mind that no stone was left unturned. It also gives you the option to pull out of the sale if it doesn't meet your expectations or if the cost to fix any issues is too high.
Adding value to an old home is easier than doing so with a new build, therefore if you wanted that loft conversion, or a larger kitchen extension, you'll be more likely to achieve that with an older build. Long term, the added value will be a good thing for you when it comes to selling.
Photo credit: Sandersons UK (Long Street, Croscombe)
What about the cons to an old build? Well, there are a list you should consider.
With old builds tending to be larger in size, these large rooms will need to be heated in the colder months. With that comes larger energy bills.
Up to date heating systems aren't going to be standard, so if old builds are your style, you must be prepared to update it accordingly to be warm and keep in the warm. With prices being hiked here, it would need to be a priority in order for long term financial comfort.
Renovation costs can be extreme, and sometimes you can end up paying more than you'd have originally budgeted for. Bringing it to standard may come at a cost.
General wear and tear could see you needing to additionally spend, especially when it comes to issues such as damp. Several owners prior to you will see the house being or feeling more 'tired' – which means your hand will need to go in your pocket to awaken a new potential.
What about you, the buyer? What suits your lifestyle more? We believe information is key to helping people buy their perfect property, and offering it you helps you make the right decision based on your needs, budget and lifestyle.
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