When it comes to purchasing a home, many buyers in the market struggle to decide if it would be best to purchase a newly built home or rather invest in an existing home. Understanding both options before committing yourself would be a wise, as it ensures that your final decision is the right one.
Steven Barker, Head of Home Loans at Standard Bank, says the key is to find a home that has everything you need for the right price. “Doing some homework before committing yourself can save you thousands of rands in the long run.”
Barker says that for some buyers, even though the thought of purchasing a new home may have more appeal, one must weigh the respective pros and cons carefully.
Benefits of buying an existing property include the ability to see defects, as the home will have had time to settle, and the ability to assess the neighbourhood. Furthermore, existing homes may also have unique architectural characteristics, depending on one’s preference. However, there are also downsides attached – existing homes may require minor “touch-ups” or large renovations, and it is up to the consumer to keep these aspects in mind before making the purchase.
Another significant aspect to consider relates to the lack of new technological accessories and energy efficient capabilities, and the extra costs involved to integrate these features with the home.
The conversation is rather different when considering purchasing a newly built home – one has the option of choosing and buying near amenities. Encouragingly, no major maintenance may be required, and more modern gadgets and accessories may be available. Furthermore newly built homes may be constructed with more energy efficient capabilities.
Take the appropriate time to investigate what’s on offer in your chosen area before you sign on the dotted line. It is of utmost importance that proper planning takes place before committing to such a significant life changing decision, says Barker.