Should You Buy a New Home or a Used Home?

Behind the convenience offered, buying a house from developers has its own risks, so does buying a house from the previous owner or third party.

Moving out, selling home
Minute Read

4 mins

Published

06.10.2021

Category

Lifestyle & Tips

Buying a new house through a developer has become a popular choice to most people because of the convenience it offers. How is it not? Not only that the searching process is easier, you do not have to spend your energy looking out for land for lease, the building process, and even applying for a mortgage becomes also easier.

But, behind the convenience it offered, there comes risks that can happen when you buy a house through a developer. So maybe, you can start considering buying a previously owned or used house, where you will get a lower price compared to a newly built house, and you can also negotiate the price directly with the homeowner.

Whether it is buying a new house through a developer or buying a used house. It is important for us to pay attention to some of these things to avoid unwanted losses. Scroll down for some pros and cons that you have gathered for you before you decide whether it is buying a house through a developer or a used house!

asian family buy new house in indonesia from developer

Pros of Buying a New Home Through a Developer 

  • Easier Process

When buying a new house through a developer, you do not need to spend as much energy when it comes to the transaction process. The developer will provide everything that is necessary when related to closing the deal, from documents to submitting a mortgage. Especially for first-time home buyers, this will come in handy to help you in the transaction process.

  • Promotions

It is common that property developers offer plenty of promotions for their newly built housing. Starting from discount promos, lucky draws, to tempting mortgage promos. Buying a new house through a developer can be more affordable, and certainly benefit you as a buyer.

  • More choices & options

Starting from types, styles, to the specifications of the house, there are many choices you can choose from. Buying a new house from a developer makes it easy for you to take care of the house without having to consider maintenance as you move in, you will also know the initial history of the house, such as the materials and finishes that are used. Developer housing also comes with better security, typically CCTV and a one-gate system.

Cons of Buying a New Home Through a Developer

  • Delays

New homes that are usually offered by property developers are usually sold with an indented process. This means, you still have to wait sometime until you can move into the new house. This may not be an ideal choice if you are looking for a house that is ready to live in immediately.

  • Surrounding Area

As most newly constructed houses are built in a developing area, the neighbouring areas tend to be quiet, unstrategic and may lack public facilities and infrastructure. You will then become more dependent on the housing area facilities provided by the developer.

  • Limited Access

In addition to facilities that are practically limited, as new housing locations are usually built in developing areas with only new toll access plans and transportation routes, residents who need public transportation still have to rely on shuttle facilities from the developers.

asian family buy new house in indonesia from developer

Pros of Buying a Used or Pre-owned House

  • Environment

Previously owned houses are mostly sold in crowded and well-developed residential areas with a robust community. The environment is mostly a longer-term neighborhood since most of the houses have been passed on generations. Pre-owned houses are usually located in strategic areas where public facilities, social, and transportation are easy to reach.

  • Negotiable Prince

Not only that the housing price of a previously owned house is cheaper than the market, purchasing a previously owned house means getting a chance to bargain and negotiate with the homeowner. As buying a pre-owned house is expected to have a little rework and repairs, you can offer the owner a price to negotiate.

  • Ready Units

In contrast to buying a new house through a developer where you have to wait for quite some time until it is done, buying a used house allows you to move into the house without having to wait that long. Even though buying a used house requires some repairs, usually the condition is ready for occupancy. Unless the house is in need of renovation and needs a complete fixer-upper.

Cons of Buying a Used or Second House

  • More Spending

Buying a used house means that you are ready to accept the imperfections and defects of the house and that you are also ready to make the necessary repairs. Therefore, you need to carefully prepare and calculate the cost budget that must be incurred, not only for buying the house but also the cost of renovation. So, if our goal is to find a cheaper house, you must be able to manage costs so that it does not exceed the price of a new house.

  • Risk

There are many things to consider before buying a used house, such as the condition of the building, the environment, and every important document. Do your research if you want to buy a used house. You have to ensure the status and history of the house so that you can avoid possible losses that can happen.

  • Expensive Insurance

Home insurance is as important as your health insurance to protect against unwanted things, such as fire, flood, and others. However, the cost of insurance for a previously owned house or an old house is more expensive than a new house considering the age of the house and the risk that is greater than a new home.

New home

So which is the best way of buying a house?  Be it a used house or a new house, do consider the advantages and disadvantages of each. Never forget to adjust to your own budget and your needs!