Buy new or old real estate 

Buy new or old real estate

You plan to buy thereal estate in the new or the old?  This crucial choice will impact many aspects: budget, possible work, energy performance, taxation, etc.

Before you decide, it is essential to analyze in detail the respective advantages and disadvantages of these two alternatives. In this researched article, discover a complete comparison of the new versus the old from every angle.

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We will sift through all the differentiating elements: price per m2, additional costs, risk hidden defects, co-ownership charges, tax benefits, resale valuation…

Thanks to this exhaustive insight, you will be able to make your decision in full knowledge of the facts and find the property that really corresponds to your needs and your life project. But before you start, here's how Investing in real estate step by step

 Let's go !

🎯 Higher prices per m2 in new buildings

Let's start with the overriding criterion of price. Unsurprisingly, the new is more expensive per m2 than the old. Count on average:

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  • Nine : between €4 and €000 / m6 depending on the region.
  • Old : between €2 and €500 / m4 for a standard apartment.

This difference is explained by the higher cost of construction, as well as the margins of the developers. Also keep in mind that surfaces are often less generous in new buildings (smaller rooms).

🎯 Additional costs also higher in new buildings

In addition to the purchase price, the ancillary costs are also higher in the new:

  • 20% VAT against reduced notary fees in the old one.
  • Development tax and various contributions.
  • Ten-year guarantee costs.
  • Slightly higher notary fees.

In total, these ancillary costs can represent 10 to 15% of the price in the new, against 7 to 8% in the old. This must be taken into account in your overall acquisition budget.

🎯 Less risk of hidden defects with recent construction

One of the advantages of new is the absence of unpleasant surprises. Unlike an old dwelling, you are sure of the general condition with a new construction.

No risk of:

  • Problems with pipes or electricity
  • Latent defects following poorly carried out work
  • Bad surprises in terms of insulation

Everything is guaranteed by the decennial. This avoids unforeseen works and proceedings against the former owners. A pledge of peace.

🎯 More reasonable co-ownership charges in new buildings

Another positive point, the condominium fees are generally better optimized on recent programs:

  • Efficient insulation limiting energy expenditure.
  • New collective equipment under warranty.
  • Rigorous management of the trustee at the start of marketing.

As a result, charges for new builds are around €20/m2/year compared to €30 to €40/m2 for old properties. A significant gain in purchasing power.

🎯 More tax advantages with an investment in new

Also from a tax point of view, new is more attractive:

  • 20% VAT recoverable on the first rents.
  • pinel : tax reduction of up to 21% of the purchase price.
  • Duflot/Pinel: maximum reduction of €63 spread over 000, 6 or 9 years.
  • Exemption from property tax for 2 years.

Enough to optimize the operation from a tax point of view, especially with a view to rental investment.

🎯 Standards to be respected in the new

On the other hand, the purchase in the new implies the respect of strict standards which can constitute a disadvantage:

  • RT2012 and soon RE2020: energy constraints.
  • PMR standards for accessibility for people with reduced mobility.
  • Drastic security rules.
  • Parking obligation for cars in certain cases.

These stringent regulations affect the final price. They also leave less freedom to personalize the property according to one's tastes.

🎯 Better potential for long-term development in new buildings

In the long term, the valuation will be better on a new apartment. Thanks to :

  • Modern and durable services.
  • Better energy performance.
  • None " dilapidated effect ».
  • A location often neat.

All this will help to increase its resale price. in 10, 20 or 30 years compared to to old energy-intensive housing.

🎯 More flexibility and negotiation in the old

By buying in the old, you benefit from a greater margin of negotiation on the price. In an existing condominium, not everything is set in stone either.

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It is possible to :

  • Get a 5 to 10% discount by negotiating well.
  • Discuss with the syndic on possible future works.
  • Adapt the good via works to customize it.

Impossible in a new residence under the VEFA regime where everything is imposed by the promoter.

🎯 Summary of advantages/disadvantages

To summarize the key points:

NewFormer
💶 Higher budget💰 Price per m2 lower
🆕 Absence of hidden defects🔧 Risk of hidden works
💷 Tax benefits📉 Possible capital loss
🔨 Reduced flexibility✂️ More freedom

🎯 Closing

In the end, the choice between new and old must be do it according to your budget, your investor profile and above all your priorities in terms of location, benefits and taxation.

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Now that you have all these detailed comparison elements, you can make your decision with confidence. Analyze all the aspects carefully to find the property that really corresponds to your project and your needs!

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