Discover the advantages and disadvantages of buying new builds vs older homes to ensure you invest in the right property that satisfies your requirements.
When investing in a property as a homeowner or property developer, the big question remains whether to buy a new build or an existing home.
But with various advantages and disadvantages on both sides, knowing where to put your money depends on your preferences.
In this blog, we’ll discuss these factors and why buying in Birmingham could be the ideal location for your housing requirements.
The Difference Between an Old Building and a New Building
Firstly, it’s vital to comprehend the differences between a new build and an older building or existing home.
We define “new build” houses as being brand new without any previous owners.
Therefore, a newly built home will suit someone who wants a fresh start with no influence or impression left by the previous owners.
On the other hand, an older or existing home is defined as having at least one previous owner, regardless of how recently the house was built.
While a “new home” can be given to a house constructed recently, in technical terms, a “new build” is distinguished by whether the property had a previous owner or not.
What Are the Advantages and Disadvantages of Buying a New Build?
Distinguishing whether a new build or an old house is better depends on your ideal home. So, let’s look at some advantages of buying a new build.
The Advantages of Buying a New Build
- Energy Efficiency
Today’s building techniques and industry standards require property developers and builders to build homes that satisfy energy-efficiency ratings.
These features include insulation, energy-efficient heating systems and double-glazed windows.
This policy follows the government’s ‘Rigorous new target for green building revolution’ campaign in 2021, with all new homes expected to produce 75-80% less carbon emissions by 2025.
- Buying Schemes
The government provides discounts for first-time buyers up to 30%-50% less than the market value.
But this discount only applies to new homes built by a developer or a home you buy from someone else originally on the scheme.
Alongside the government, there are also developer incentives to reward new build buyers, such as paying for Stamp Duty, covering legal fees and providing home improvements such as flooring, appliances and investments for furnishing.
- Personalisation
Building a home from scratch means more choice of features compared with existing homes.
From choosing the carpets, flooring, kitchen and bathroom, having these personalisation possibilities enables you to enjoy more control over how your home looks and feels.
- No Chain
The “chain” process in the UK housing market means that sometimes buying a new home can prove challenging if someone in the chain pulls out or decides not to move. Housing chains can set you back to square one even after months of planning and paperwork.
However, with a new build, as the first person moving into the house, thankfully, there is no chain because you’re not waiting for anyone to move out.
- Builder’s Warranty
New build homes come with a builder’s warranty as standard at a rate of 10 years. So, if anything goes wrong with your property, your builder is liable to fix it.
The Disadvantages of Buying a New Build Home
Now that we understand the advantages of buying a new build, are there any disadvantages for you to consider?
- Less Space
Some building developers will try and maximise their returns by cramming as much space as possible in your new build.
This approach can mean there is less space for storage within the home alongside outside areas for parking or garden space.
Before you invest, evaluate your space needs and discuss them with your developer.
- Smaller Buildings
New builds tend to be smaller than periodic properties that boast high ceilings and more storage space.
So, if you’d prefer a large house with space to fill, perhaps reconsider a new build.
However, due to energy-efficient design, new builds are excellent for maximising the space inside but can leave you short for storage.
- Teething Issues
Minor day-to-day issues in older buildings often get solved by the previous owners living there. However, new builds can come with the odd issue due to being brand new.
Anything from a door being slightly off hinge so it doesn’t close properly or a slight leaking tap. All these issues are minor and easily solvable. Plus, you can avoid these problems by having a snagging survey with your property developer.
- Delays
Buying a property before it’s built can come with delays. Whether it’s bad weather or sourcing materials, complications arise and naturally halt progress.
It helps to have a healthy relationship with your developer and keep an open dialogue so you can plan around any unfortunate delays to your move-in date.
The Advantages and Disadvantages of Buying an Old House
Ok, so we’ve some pros and cons of buying a new build, but what are the advantages and disadvantages of buying an old house?
The Advantages of Buying an Old House
- Size
Older properties tend to be larger, with more space on the inside and outside. However, this is just a general observation, as many new builds offer the same size and space.
- Character
Whether the smell of old oak wood, the expanse of high ceilings or just those unique little nooks and crannies within a house that give a sense of character, older houses can feel more a part of history, such as Victorian, Georgian, or Edwardian homes.
While you can’t write a newly built home’s history, you can still add features to the design that give it a sense of character.
- Visible Issues
When buying an old house, checking for issues during your initial survey tends to be easy. This aspect can provide extra peace of mind during the buying process.
The Disadvantages of Buying an Old House
With older house advantages in mind, what about the cons that come with buying an older house?
- Less Energy Efficient
One of the main drawbacks of buying an older home is the lack of energy efficiency considered in the original construction.
These issues include poor insulation and less efficient appliances and heating systems. While contributing to environmental factors, it will also mean paying more for your bills.
- More Maintenance
The older the home, the more maintenance issues occur. Issues like dampness, leaks and general wear and tear are more common in existing homes.
- Long Chains
Buying an older home will most likely come with a selling chain. The housing chain in the UK market can result in a more stressful buying process with an increased possibility that your purchase may fall through.
New Build vs Old House: The Verdict
As you can see, buying a new build or older home is subject to your preferences and requirements. If you want a bigger home with more character, opting for an older home may suit your needs.
However, if you want a new, energy-efficient home with personalisation, warranty and buying incentives, investing in a new build will be a more worthwhile purchase.
Why Birmingham is Putting Up New Housing
If you’re swaying towards a new build, Birmingham is the perfect location for you. The city is widely recognised as an excellent city in the UK to invest in property as a home buyer or developer. Its transformation in recent years makes it a fantastic destination to invest in property due to the growing economy and numerous new build sites.
The average price for new property in Birmingham is £320k compared to the £405k average of the rest of England and Wales.
Why Vivante Homes Should Be Your Chosen Property Developers in Birmingham
At Vivante Homes, we’re a forward-thinking property developer with people-first values and an excellent reputation for building sustainable, comfortable, affordable homes across the West Midlands.
All our property development projects over the past couple of years have involved building bespoke new builds that incorporate the latest building techniques and energy-efficient materials to comply with UK regulations.
So, if you’re interested to see how our property development services can provide you with a perfect home, get in touch today.
