So you’re looking to buy a new build house or might be considering renovating an old one yourself. What are the advantages and disadvantages of both methods though, let’s look at it in a little more detail and we can see what way might suit you best.
Cost: Which Is Cheaper
This is a very tricky question to answer as there are so many factors and it really depends on what would need done in the renovation but the key to evaluating the real cost of renovating is planning and research, make sure you know what potential costs can be involved, especially if things run over or problems occur. The best way to sum it up is that renovating an old property is a calculated risk and buying a new build is a more known quantity and set price situation financially.
It’s no secret that insulation in older properties is not as efficient as in a newly built modern home, so the cost of that can really mount up year after year. Although it’s not all one way in this regard there can be huge costs in setting up a new build property, especially the garden space which can need very expensive landscaping work to bring it up to scratch.
Differences In Mortgage Options
You’ll find there is a difference in the way the bank will structure a mortgage for a simple purchase of a new build compared to how it will work for a renovation of an old property. The purchase of the new build will be a normal straightforward mortgage and you can easily shop around to find a better mortgage deal and get set up. With the renovation you’ll find the lender will give you a staged payment structure so that you get funds as the work progresses, this allows you to assess if all is going well and gives the bank some protection if things don’t go to plan. So again the purchased new build is the less risky option here.
Consider An Extension Later On
If you are not sure about the property and what you can get right now be aware that you can always add on an extension in various ways so either way you’re not completely stuck with what you’ve got. When thinking of extending a new build in some ways this can be easy as the whole property is made with current, modern materials most of which will be readily available from merchants, although the one disadvantage of new build properties in this regard might be that increasingly plot sizes are decreasing leaving less room to expand. On the other hand you may need to emulate the architectural style in the older property and that requires sourcing suitable materials.
You will find the the locations on offer will differ between new build and old properties, new builds will mostly be in suburban areas or out of town as new land is built on. You might find a bit more variety of choice though when renovating old properties and this may seem much more attractive to you as an option.
So what do you think …. Buy A New Build Home Or Renovate An Old House?