Having a new home is a big leap for first-time home buyers. Hence comes the question – a new one or an established one? In fact, the durable argument of whether it is best to buy a new home or older one date back centuries. And it has never been quite resolved. As this can be a life altering decision for Singaporean young working adults, one has to take the decision after measuring every aspect.
Both new homes and re-established homes in Singapore have their own advantages and disadvantages just as for every qualifier, there is a disqualifier! There are many factors, some of which are beyond economics, that drive the decision. Buying a home is more of a lifestyle decision. But more or less, these are the things one has to consider on taking a decision on whether to buy a new one or an established one:-
Cost: Yes, cost comes first as it is always “the elephant in the room”. Buying a new house / flat / property is always more costly than an established one. One might have to take a bigger home loan in comparison to the loan for an established one. On the other side, sometimes, the redecoration and utility bills piling up for faulty lines and maintenance and renovation of old homes become painful to bear. And due to location, as new home mostly a little bit outside the city, travelling cost might get a little bit higher than the established one.
Location: Location is everything for many first-time home buyers. For example, neighborhood is a major issue for ensuring safety of one’s own and for family members. The neighborhood also matters for schools, community and public safety. Most of the established houses in Singapore are in old neighborhoods. So public safety, good school for kids is not an issue. The new ones on the contrary are near the city center and in busy zones.
Customization: Most of the time, one wants to make the home as per own choices and preferences. This can be really costly for established houses. When buying a new house, one can have everything just the way it is wanted. But for an established home, the house will have to be under major renovation, which can cut deep holes in the pockets.
Resell value: Another thing to keep in mind is the resale value of the houses. Usually the value of new houses in Singapore is higher than the established ones. If someone is buying the house for investment purpose or has the intention to live for a couple of years and then sell it off, then it is better to go for a new home. But if someone has a tight budget and wants to buy a home for the family, it is a good option to buy an established home as it would cost less.
So, that’s it, these are the main factors to consider while deciding whether to go to a new house or buy an established one. One thing for sure – the decision to buy a new house or an established one is not an easy one, as each type of property comes with its own set of benefits. Ultimately, it will depend on one’s budget and the priority.
It is surely better to weigh all options carefully and consider personal financial situation, long term plans and job security before taking the plunge.
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