Monday, May 7, 2012

Should I Buy a New Build or an Older House?

I often get asked the question, "should I buy a new or older property"? Well here are some thoughts to consider.
Here's an example from Ken who was considering buying a house in Bromsgrove, West Midlands...
There was a £20,000 difference between the price of a new modern 4 bed detached house and a 10 year old house.
5 years from now the new house will be 5 years old and a 10-year old house will be 15 years old. The question was would this difference still remain, or will the older house catch up? New houses are like new cars, they lose value as soon as they become second hand!
What you will find, is that property is like fashion, it comes in and out of style.
A 15-year old house will be competing with the new houses of the day. Over 15 years house specifications improve. A four bedroom house which was built 15 years ago might not have a down stairs cloakroom for example. The new one will. Hence the new one is more desirable and is valued higher.
So my advice to anyone with this dilemma, is go for the property which suits your situation the best.
An older property might have more 'potential', but if you don't have the time to add the potential - there's no point in buying it.
Older houses usually have more land with them, which can be a good thing if you want to extend, add a sun room or landscape the gardens.
It can also very much depend on your lifestyle, commitments, and family circumstances.
When you have young children you may need a property that is 'already done', with such specifications as en-suite bathroom to the master bedroom.
You may be both working full time and don't want to have to work on the house. In this case a newly built house is for you.
If you have the time and/or money to do up an older property, it certainly can pay dividends, especially if you add on the features that everyone wants.
These days things like: downstairs cloakroom, utility room, en-suite bathroom, summer room and home office are all worthy additions to an older house that did not have these as original features. The house next door will always get a better price if it has these features over one that does not.
Remember, a house will have a maximum price in any area at any one time, so don't overdo the modifications. If it can be done in keeping with the style of the original building, you can buy low, invest wisely and make money.