If you are thinking of buying a second home or a habitual residence, you may be wondering if it is better new or second hand. We help you choose.
When buying a second home or residence, the same question always comes to mind: new or second-hand home? There is no correct answer in this regard , since it must be each person who finds their ideal option based on their particularities. Still, there are a number of pros and cons for each type. We detail them below.
Advantages and disadvantages of new construction homes.
High quality: Newer and more resistant materials are used in newly built houses, which makes the general set of the property of higher quality than that of a house built, for example, twenty years ago. This aspect is also positive in the long term, as the apartment will not need any renovation or maintenance for a long time.
Modernity and ‘à la carte’: New- build flats are adapted to current times and new trends. Parquet or wooden floors, kitchens lacquered in white or other colors, smooth walls …
These are some of the aspects that predominate today in new constructions and that it is difficult to find in a house with more than two decades. In addition, Tajarat properties give the option of making homes ‘à la carte’ in which the buyer can choose the finishes, the color, the distribution, etc.
Is it better to buy new construction or second-hand homes?
Efficiency and lower energy consumption: The most recent buildings have adapted to the new market requirements and present innovative measures that make these properties more efficient, thus reducing pollution levels and energy consumption. Also, many of them incorporate renewable energies such as solar photovoltaic through panels.
More features: Formerly the homes that were built did not usually incorporate many features (in old buildings it is rare to find even a lift). However, today urbanizations increasingly include more attractions to attract buyers. The most common: swimming pool, sports areas, gardens, gym, parking, spa …
Advantages and disadvantages of second-hand homes.
Better prices: Second-hand houses, understandably, are more affordable than new-build ones. According to data from the Ministry of Development , in the province of Alicante the average price per square meter of used housing is 1,229 euros compared to 1,511 for new construction. In addition, this type of houses have a more varied range of prices, so there are alternatives for all types of budgets.
Lower tax expense: The buyer of a new apartment has to pay 10% VAT when acquiring the property. This is not the case of those who buy a second-hand house who will only have to pay the Property Transfer Tax (ITP), which is between 6 and 8%.
Likewise, community expenses will also be lower in an old building, since they generally require less maintenance as they do not have facilities such as a swimming pool, garage, garden areas, etc.
Is it better to buy new construction or second-hand homes?
Imminent access: When acquiring a second-hand home, access to it is imminent once the purchase-sale document has been signed.
This does not usually happen with new construction properties, especially when they are bought off plan, since you have to wait until they are finished and have all the necessary certificates for their habitability. This process can take months and sometimes years.
Best location: It is difficult to find an empty building plot in the center of a large city. This causes the oldest houses to have a very important aspect in their favor, the location.
Newer buildings are often built on the outskirts of cities, making it essential to have a means of transport to get around. However, older home buyers will not have this need, as the location of their homes will undoubtedly be more privileged.
5 keys to choosing the right property.
After knowing the benefits and drawbacks of each type of home (new construction or second hand) , we provide you with the five aspects that you must assess so that the balance is tipped to one side or the other.
1. The state: The situation in which the property is located is essential. If it is new, there will be no problem; if it is second-hand, it may need reform, but that does not have to be an inconvenience, as it allows you to customize the home according to your tastes.
2. The price: Of course, the most important thing for most people is the cost. Set yourself a budget and try to find properties that are in that price range, whether they are new or old.
3. The benefits: Pay attention to the facilities that the house has and the building in which it is located. Does it have an elevator? Does it include a garage space? Is there a swimming pool in the community? They are relevant questions that can decide the election.
4. The location: Do you want to live in the center of a large city or on the outskirts? Do you prefer a coastal or inland area? The location of the house is another element to take into account so as not to make a mistake in the selection.
5. Expenses: Not only the price of the property is important, you must also calculate the expenses derived from residing in it to see if they adapt to your pocket. Light, gas, electricity, community, internet and telephone, etc.
How does the millennial generation look for a house?
The millennial generation consumes differently from their predecessors. We analyze the behavior of a digital native when buying a home.
Surely you have heard on numerous occasions of the millennial generation, which includes everyone born between 1981 and 1995. But why have they become so important? Because they are digital natives or, as some say, “born with a computer under their arm” (although they have later changed the PC for a smartphone).
According to the Deloitte report ‘Millennial Survey’ , this generation, also known as Y, will account for 75% of the global workforce in 2025 . For this reason, companies and organizations strive to adapt to the new consumer trends of these people.
Millennials are characterized by being totally dependent on the internet, they do not understand any form of consumption that is not linked to the internet. Any sound examples? They no longer need to buy CDs, they have Spotify.
They do not communicate through calls, but through WhatsApp , and they do not need to buy new things, they buy second-hand products through Wallapop . New business models that just ten years ago we did not even think would exist and that are going to become more and more relevant.
Obviously, there are certain types of products that cannot be purchased over the internet. The most notable case is that of houses but, even so, the online universe acquires an important role. Do you want to know what the process of buying a home for a millennial is like? We will tell you!
Millennial generation: requirements when buying a home
The consumption processes of millennials are quite different from those of previous generations. There is a condition that has marked that this is the case and that is that these people went from having a fairly high purchasing power to experiencing an economic crisis that has radically changed their way of seeing life.
Generation Y, more than owning things, what they value are experiences, so they are more “experimenters” than buyers. Economically, they are people who have a hard time making money, due to low wages and precarious labor market conditions. Therefore, they look in detail at the use they are going to make of their economy and where they are going to invest their savings.
The millennial generation takes a long time to become independent and even longer to buy a house , since before they spend several years living in rent. When they finally decide to buy their own home, these are some of the steps they follow in their approach to the real estate market:
- They search through the internet: As we have commented previously, they do not conceive a purchase process that is not related to the network. So your first step is to search online for apartments that suit your needs.
- This is why it is so important that real estate companies like blue world city Islamabad carry out this digital transformation, because if they are not on the internet they will lose an important market segment.
- They ask for opinions from third parties: Millennials rely a lot on the criteria of other users, so before launching to buy something they ask for an opinion and consult various internet pages such as social networks, blogs or forums.
- They also resort a lot to influencers in the sector and, of course, ask their friends and family for advice, especially those who have already gone through this trance before.
- They value their time very much: If something is especially important for a millennial, it is their time. They are people who highly value what they do in their day to day, so they do not like others to waste their time. If they contact a real estate agency to help them in their buying process, they expect agility, competent professionals and criteria to find what they want.
- They try to borrow as little as possible: The millennial generation boasts of being very independent and self-sufficient, and what they hate the most about buying a house is having to go into debt.
As far as possible, they avoid having to go to a bank or ask their parents for money. So, they usually buy their home together, that is, as a couple. Thus the expenses are shared and the economic investment less.
They prefer practicality over luxury: In a home what millennials seek is to have a place of their own, which reflects their personality and in which they feel comfortable. Therefore, they are not looking for eccentricities, but practical things.
They prefer open spaces and small, cozy homes. In addition, they favor empty houses that they can decorate as they like with sustainable materials.
As can be seen, Generation Y has broken barriers and traditional habits that were deeply ingrained. All this represents a challenge for all businesses, which must adapt to the new trends set by millennials if they want to survive in the coming years.
The estate is not a separate case, they must restructure its industry to attract these people with different characteristics.