Setting your heart on property investment is always an opportunity I would recommend. With the right property and purchase deal, a buyer can return a hefty profit, but the former is something less considered and yet can lead to the success or downfall an on-seller.
The real question is do you search and buy older or newer properties. It’s a hard thing to way up, and something that has many strengths and weaknesses, all things you need to way up when contemplating your next purchase.
Here’s a few advantages and disadvantages we have put together…
For most people on the property market, older housing is a more common buy if you’re looking for cheap, but don’t let this fool you. Cheap houses are by no means cutting down your expenses, in fact, they often work out as worse for the money. Whilst a house by itself may be sold onto you quite cheaply, it is usually because it is lacks in interior prowess. Older houses are commonly in dire need of redecoration, and more importantly things such as boilers and bathrooms don’t function quite as well as new builds. For these you may have to pay out for stripping and reinstalling features but, despite this, many buyers will expect this coming in and won’t mind paying extra knowing that these issues are fixed for them.
As well as this, older properties often come with appealing additions such as garden space. Newer properties are compact and use less space than older alternatives and so having this outside environment will give you a one-up on selling on.
Remember that the renovation and up-do stage is always a key part in the purchasing of old properties, making them habitable and fully fit for use, but when done correctly old properties have real character and a nice blend between modern function and period features. It can be said that many people prefer period to newer builds for these exact reasons. Newer builds are structured, samey, but old housing all have unique features many will pay much higher for. If people have a feel for olden-styled buildings, they won’t refuse a higher price, so don’t rule them out!
On the other hand, unlike old properties, newer builds are – as said – new, and this means much less work! In a new build property, most things are quite newly installed and up-to-date, which is great for buyers that are house-searching on a budget. When selling these on, you can be sure that everything is more-or-less in date and people will like the modern, working features enough for purchase. This means your buy-to-sell period is less laborious and less costly; repair and redecoration will be minimal.
As well as this, people often pay for newer builds with the promise of better efficiency and energy costs cheaper to run after purchase. Make sure to check on things like these though, so not to mis-sell.
On the whole, properties like this are much safer to start investments in as you shouldn’t need to put much work into making these houses home-friendly. Fire safety, security and such like should be all in working order when you buy – another thing that won’t leave you stumped.
Seems perfect right? But when it comes down to it, remember that it’s all about personal preference. Many prefer modern builds, but others like the appeal of an older or period property. What really is most important in this, that you choose what you feel you can handle. If you want a to renew old character go old and if you want a quick buy-and-sell deal, it may be best to go new. Either way we hope you prosper in your purchasing!
Hope these help way up the advantages of your next buy. Happy purchasing!
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focuses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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