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Buying a New Home or a Second Home?

Friday, May 23, 2014 Category: Tips and Tricks
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Modern Home Design with Minimalist GardenAds on housing are currently flourishing in various media, both print and online. Homes being sold are not only new homes, but also the second ones. Both new homes and second homes have advantages and disadvantages that need to be considered by prospective buyers.

Here are some advantages and disadvantages of buying new homes and second homes:
New Home
Advantages:

  • You are able to know the building materials from the specification.
  • You are free to choose the design and shape of the building according to your taste.
  • It just needs a bit of finishing costs.
  • It is more easily maintained.
  • It applies environmental cluster design.
  • There are new environmental facilities.
  • Purchasing is easier; only to developers and banks, or buying directly from the seller (individuals) in cash.
  • Good investment value, because after the region develops, the value of land and buildings is also lifted.

Disadvantages:

  • Its location is likely to be far from existing centers of activity.
  • When deciding to purchase it, the building typically has not been established. Buyers can only see the shape of the house based on the picture of the brochure.
  • The new neighborhood is generally not formed and requires a long time to be truly alive.
  • Public facilities and business district is not necessarily readily available.
  • Taxes are relatively more expensive than the old house.
  • Investment risk is greater than the second house which the region has been relatively built and well established.
  • The residents need more time to adapt because of the social system which is not running normally.

Second Home
Advantages:

  • The building has been built, so that buyers can see the shape and quality of the building.
  • Social environment (such as neighbors, social control, security systems, educational facilities, health facilities, places of worship, and other facilities) has been formed.
  • Regional infrastructure (such as roads, parks, electricity, and water) is already running.
  • Building and home prices can be negotiable, especially if the owners are in need of money.
  • The building can be occupied immediately after purchase.
  • Tax relatively cheaper than new homes.
  • Investment risk is small because the environment is well established.
  • Buyers adapt faster because all the facilities are already there.

Disadvantages:

  • Not many choices. Unlike the new housing that has various option of type, location, and price, the second home market come unplanned, so the only home offered for sale can be purchased.
  • The design of the building is outdated.
  • You have to pay for repairs and maintenance.
  • Since it is a permanent building, you must do renovations to have some changes.
  • The strength of home construction will reduce if it exceeds 20 years.
  • Building value depreciates (decreases) in 20 years.
  • The purchasing is slightly more complicated than purchasing a new home, because the certificate and the legality of land and buildings should be checked first.

Image credit: easyhomeimprovement.co.uk 

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