Old house vs new house, what is more profitable to invest? Posted on May 24, 2024 By Hakeemdev Buying a home always generates the doubt between choosing an old house and a new house. In the first instance, it is the cost that can determine the purchase. At first glance, it may seem that an older house is cheaper. But will there be a significant difference in the cost of an old house and a new house? What are the advantages of choosing one or the other? How can you get the house of your dreams if you don’t have money? Old house and new house, which one sells more? The National Institute of Statistics reveals that so far this year 2021, 46,414 new houses have been sold throughout Spain, with an average cost of 139,321 euros. On the other hand, the same study revealed that Spaniards have bought 173,100 old houses with an average price of 126,153 euros. Statistics show that 79% of property purchases are associated with second-hand homes. This explains the trend of rehabilitation in second-hand homes, which provides a personal touch to the house, adjusted to the person’s taste. Advantages and disadvantages of investing in an old house Second-hand houses or apartments have advantages and disadvantages that you should consider when you want to invest in a home. Advantages Look at the following list of advantages of buying an old house. Location: second-hand work is located in privileged urban areas, the city center, or historic centers. In these areas, there are all the services, such as health centers, restaurants, schools, sports centers, shops, etc. Investment: second-hand properties are cheaper than a new house, so they represent financial savings. Revaluation: after a renovation, old houses revalue up to 10%, and, in addition, the geographical location can also play in the buyer’s favor in their revaluation. Taxes: VAT for buying a new house is 10%. Acquiring an old house involves a Property Transfer Tax (ITP) and the applicable rate will depend on the Autonomous Community where the property is located. Ready to live in without work, without construction, without problems… a second-hand house is ready to live in when you buy it. Disadvantages Among the disadvantages of buying an old house is that it requires renovation, which represents an economic investment that must be considered. Advantages and disadvantages of investing in a new home New houses are the dream of many, and they provide many advantages. But they also have some details to consider. Advantages Among the best advantages of buying a new home are: Innovation: you will have a house with an innovative, efficient, and ergonomic design. Efficiency: the house will be manufactured with advanced materials and efficiency and home automation criteria that reduce energy costs and improve quality of life. Spectacular common areas: although it will be outside the center, buying a new house means living in beautiful urbanization, with gardens, swimming pools, garages, storage rooms, etc. Off-plan home: an off-plan home guarantees certain adjustments to your tastes and the guarantee that you will not lose your money. Disadvantages Although there are a few disadvantages to buying a new house, we can mention that its cost is higher, which can mean a larger initial investment. Furthermore, an area far from the center can represent a disadvantage for some, especially if they have to travel to the center every day. Old house vs. new house: initial investment analysis This is one of the most important analyses you can do to decide between an old house and a new house. We have already seen that the initial investment of a new house is higher than that of a second-hand house. But, if you buy an older house and plan to carry out renovations or remodeling, that will represent an extra cost. Therefore, you must calculate what the cost of renovating the second-hand home will be. And then add it to the initial investment. That way you will have the exact total cost of the old house. To obtain the cost of the renovation, request quotes from different companies. Once the calculation has been made, compare it with the price of the new house and decide which of the two options is best for you from a financial point of view. You might be interested in reading: Is buying and selling homes in Spain profitable? Old house vs. new house: long-term cost analysis Financial investment is not the only factor considered when deciding between an old house and a new house. Moving from one place to another involves the cost of gasoline or transportation. For example, if the second-hand house is located far from the city center, and you work in the center, then you should evaluate the cost of mobilization. Old house vs. new house: emotional analysis Even if it doesn’t seem important, consider the emotional aspect. Ask yourself: Which of the two houses provides a more family atmosphere? Between the old house and the new house, which one offers me spaces for recreation and relaxation? We know you want to create a happy and homely environment. Therefore, take these suggestions into account. The house of your dreams with AISF Partners Whether you want to buy or build the house of your dreams, at AISF Partners we offer you the best help to choose between the old house and the new house. We have the best mortgage service for the purchase of homes on the market, with which we get up to 100% of the total mortgage. Our mortgage managers will analyze your debt capacity about your total income. We have simulation software that will help us know the amount of mortgage that the bank will finance you and what amount you can pay per installment. We search all banking entities for the best plan for you and we take care of the management for the approval of the mortgage. With AISF Partners you will not be alone in the purchasing process between your old house and new house. Blog
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