Jan 23, 20By Sam Morales

Buying a home can be very exciting yet draining. There are a lot of decisions to make. For some people, this includes whether they want to invest in a brand-new condo, townhouse, or house and lot, or buy a pre-owned property. 

If you are in a similar situation and are asking the same question, how do you decide? Here are the pros and cons of buying a brand-new property versus a pre-owned home.

Pros and Cons of a Brand-New Property

For newly built homes, there are very few problems within the first few years of ownership compared to homes that are pre-owned. 

Here are the following considerations when buying a brand-new property:

  • Buyers have a market-wide variety of choices to pick in terms of the design and style of their future homes. They can even choose their next home based on their lifestyle and preferences. 

  • A brand-new house or condominium unit would have never been used. For buyers who are superstitious or simply want to have the first preference with their future home.

  • The total contract price is based on the market value but may go down a bit with seller discounts.

  • The majority of the developments nowadays are located in an accessible and convenient address like near central business districts (CBDs), major thoroughfares, schools, hospitals, and shopping centers. 

  • Brand-new homes often need less out-of-pocket costs for improvements. Pre-inspection may also lead to free improvements before turn-over. 

Pros and Cons of a Pre-Owned Property

On the other hand, buyers have to a pre-owned house has these factors:

  • Buyers have limited options regarding the design and style as it is dependent on the market.

  • The property you are looking into may show indications of being lived in with the obvious wear and tear. Also, some of the properties will show that it has been lived in for quite a while and might require renovations.

  • The price is lower than the market value of a brand new one. You can even negotiate with the seller for a lower price.

  • Some of the properties may come in with added obligations. Properties that have an assignment clause, for example, will expect new owners to take over mortgage payments and back taxes.

  • Sometimes amenities are not included. But if there is, they are not included with the selling price of the house and may require additional payment.

  • The location is usually located in a neighborhood that is either not accessible or experiences slow urban development.

  • There may be a need for renovation which can be costly as any improvements. However, these improvements are also added equity. 

Which one should you choose?

Nowadays, most prefer that their house is close to transportation terminals or already near their work or school. The reason being the Philippines have really congested areas wherein traffic takes hours sometimes rather than just a few minutes.   

However, choosing your future home is really up to you. It can either be based on your non-negotiables or a combination of your minimum requirements and the number of things that you can compromise in your future home. 

Still undecided about what your future home will be? Check out Philippine real estate properties here at www.signetproperties.ph