When going house hunting, most buyers have a newly-developed project in mind. The calculation most buyers make is why part with hard-earned money for a used property when a new project is awaiting buyers? The advantages are several: modern amenities, good construction, and also the fact that moving into one’s own house is a very significant event in one’s life and what better option than to start this phase in a new house.
But then, the dream house always comes with several compromises. The project may be new and within budget, but the location would not necessarily be one’s first choice, and so there is a trade-off. But if location is the first preference, then one would have to seriously consider a used property that is up for sale. What does one choose?
Here are a few pointers on new and used homes that should help you make that crucial decision.
We examine used properties as an investment decision on the basis of six parameters:
Location: This is the primary deciding factor that influences a buyer to go for the deal. Used properties are usually situated in well-developed areas of the city with fully developed amenities and easy access to daily needs, which makes settling in that much easier.
Price: The location, size and age of the property decide its price. If the home is situated in a posh locality with all the amenities, then its cost will be high and as facilities decrease with increased distance, the price starts falling.
Social Ambience: The buyer has an option to buy a home based on his neighbour’s cultural match or social status. Further, interaction with existing residents can help in assessing the locality and can add significant weightage to one’s decision.
General amenities: Old homes sometimes lack amenities such as lifts, provisions for the use of modern gadgets and even parking spaces, which need to be weighed carefully. Further there may be no community halls, or clubs and gyms.
Maintenance: Old homes depreciate quickly and needs maintenance regularly. At the time of shifting, it needs complete overhauling and thus extra funds are required for redesigning the structure and refurbishing the property.
Resale value: The value of the house keeps on appreciating if land value is attached to it. The life of the constructed asset keeps on decreasing quickly and therefore the property may see stagnancy in appreciation especially if it is nearing the end of its life-cycle.