Buying new or old: which is the better investment?

which is the better investment?

When making a real estate purchase, many people hesitate between buying an old or a new property. Both cases have advantages as well as disadvantages. Investing in new or old therefore deserves long-term thought, and various factors must be taken into account when making the decision. Indeed, the acquisition timeframe, the geographic location of the search or your budget will certainly guide your decision. If you find yourself in this situation, there is no doubt that the following article will help you, or at least, will interest you.

Price

Given the same geographic location and the same surface area, the price of a new property will be around 20% higher than that of an old property. The reasons for this difference are numerous: increase in value-added tax, stricter construction standards, etc.

New real estate remains more expensive, but it nonetheless has several positive points to consider. When acquiring a new property, the transfer duties will be less costly in some cantons. This saving will be more or less significant depending on the date at which you position yourself relative to the project's progress. As the subject is vast, Homewell will soon dedicate a full article to this topic.

Standard of living

New buildings are generally designed with recent infrastructure such as elevators, an underground parking garage, terraces, security systems, and so on. Among the other advantages of investing in new buildings, one cannot fail to mention thermal performance. In terms of ecology and economy, more recent properties will therefore gain in value.

Buying old buildings may require renovation work to improve their level of comfort (soundproofing, various repairs, kitchen replacement, bathroom fixture replacement, etc.). Renovation work for ecological purposes will also need to be planned (replacement of the heating system, windows and insulation). But do not panic, 3 years after a building is constructed, a renovation fund is generally created and allows, in most cases, the building to be improved in every respect. The real estate agent in charge of selling the property has a duty to check the accounts and to explain them to you where applicable.

The investment may be more or less significant, and must therefore be taken into account when buying.

Geographic location

If your wish is to live in the city center, close to amenities and public transport, finding a new property will prove more difficult. Most construction projects are carried out outside the cities, in the suburbs or in rural areas. Indeed, since the plots located in the city center are already occupied, old properties dominate the market. Some projects are still offered there, but at prices that often defy belief.

Contrary to popular belief, fully renovating a building is not necessarily cheaper than constructing a new one. It is for this reason that old buildings are mostly demolished before reconstruction.

For the above reasons, old properties in urban areas will be more affordable than new ones, because construction projects in the city center are rare and very costly.

Timeframe

When a property already exists, the move-in timeframe is fairly short (on average two to four months).

However, if you choose to buy a property off-plan, the move-in time can be very long, because in some cases the property cannot be delivered before 12 to 24 months and possible delays can sometimes occur.

Nevertheless, if you decide to invest off-plan, you will be able to bring personalizations to your future home, according to your wishes and needs.

Consequently, this decision will be guided by the urgency in which you find yourself.

New or old, the choice is difficult, because each has its advantages and disadvantages. Consequently, it is advisable to follow your wishes while taking into account the points mentioned above, in order not to make bad investments.