It is generally accepted that buying a new property is more expensive than buying an old property. I had the opportunity to talk with a friend who was looking at her first home and was looking at new and second hand properties to see what was the best value buy for her budget.
New Fixtures and Fittings
The most obvious benefit of buying new is that everything is new. The dishwasher, the cook top, the cupboards, the bath, the shower, the basins, the doors, the sinks – everything is new and unused and for most it would mean that they won’t need to renovate or change anything in the house.
This means that her purchase budget doesn’t need to include any extra costs or renovations that may have to come out of cashflow after the purchaser.
Builders Warranty
All the appliances have the manufacturers warranty, but in addition the builder has to warrant the building and construction of the property.
This provides added peace of mind that there will be no unforeseen costs in the short to medium term.
Technology and Efficiency
New buildings tend to have technology and efficiency items such as more power points, USB power points, cable and telephone points in various rooms, air conditioning in the main lounge and bedrooms and water efficiency to name a few. This can all help keep ongoing costs such as the body corporate fees down compared to second hand properties helping your ongoing budget and cashflow.
Modern Layout
Newer properties tend to make the most of space and present an efficient layout such as open plan dining and kitchen, additional separate toilets and minimal gardens helping you maximise your property usage and minimise upkeep and maintenance. Most will have space for at least one car in the driveway providing additional car park space.
It can definitely be cheaper buying second hand however given the benefits of buying new, you have to weigh the value of buying new against the cost saving and compromises you may need to make when buying second hand.