Is buying a newly constructed property always the best choice?

Is buying a newly constructed property always the best choice?

Is buying a newly constructed property always the best choice?

- By Rajiv Raj, Co-Founder and Director, Creditvidya.com

If you have decided to buy your own house and have worked hard to cough up an EMI for your home loan each month, it is but natural for you to desire the very best. Almost all prospective home owners think of buying a brand new property, or an under construction property to begin with. While it is indeed an exciting idea, you should not be too hung up on the same. Here are some valid reasons why.

While a newly constructed house or an under construction, property may sound good in theory, it may not always work out for the best as problems such as construction delays, or shoddy construction work may cause relentless trouble for you later. Here are some advantages and disadvantages to consider while thinking of buying a newly built home.

The advantages:

  • First things first, nothing compares to the feeling moving into a newly constructed home! The walls smell of fresh paint and things are perfect and you don’t have to worry about making the house “liveable”.
  • If you are buying an under construction property you can have the builder customize the interiors of your home before it is ready to move in. Choosing a colour pallete or some tweaks in basic construction can indeed be a big bonus.
  • Newly constructed homes also come with modern design elements such as open kitchens, customized wall to wall closets, bathrooms with latest designs. Modern day facilities such as pipe gas, alarm systems, DTH facilities, internet wiring, etc. are also taken care of.
  • Modern day constructions (provided you have selected a fairly reputable builder) also use energy efficient construction materials which means you will spend lesser on your electricity bills.
  • The other obvious financial benefit you get from a brand new house is that all the plumbing and wiring is new, so you will not have to spend money on any major repairs for a first few years.

The disadvantages:

  • But of course, all things new come with an extra cost and so is the case with any new property. It would cost you at least 10% -15% more to buy a brand new house as compared to a similar existing property. All the modern day amenities that you went ga-ga over, come with a heftyprice tags, so be prepared to pay for them.
  • If you are looking for a new property you will have to compromise on the distances from either your office or the schools of your kids. Chances are you will spend more time on the commute and will be quite far away from your favourite weekend hangouts or supermarkets.
  • If a well established community and neighbourhood is a primary consideration for you, its best to stay away from a new property, because it will take quite some time for your neighbours to move in and build the kind of old neighborhood charm that you were expecting. Also, if you are one of the first people to move in, chances are you will be in a construction zone for a while.
  • If architectural details, old world charm, creative interiors etc. are your cup of tea, a newly built home will disappoint you. If you are the kinds who likes to customize the interiors of the house and want to tailor it according to your preferences, it will be best for you to go in for an existing property. Upgrading your home according to your wishes is much easier in such homes.

Brand new homes may seem to be a great choice, if you want all the modern facilities and don’t mind paying a premium for it. But if you want to consider your lifestyle, travel distances and of course want to save every pie you can while you are buying your home, you may well go in for an existing property and upgrade it little by little as and when your budget permits you.

CreditVidya is an online educative engagement tool which helps customers to stay on the top of their credit, pay off their debt faster, save money on interest payments and live a richer life. CreditVidya empowers the consumers with basics of borrowing, creditworthiness, their credit scores and functioning of credit facilitating entities such as credit bureaus.

Last Updated: Tue Oct 28 2014

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