Should you buy a new or a resale flat?

A new flat or a resale? There appears to be no easy answer to this question. 

People buy resale flats instead of new ones for various reasons. Sometimes, a certain location just does not offer suitable options on the primary market.

At other times, buyers don’t do much research and are unaware of the availability of good new projects, or they succumb to the pressure tactics of a real estate broker and buy a resale. They may believe a serviceable flat available at a slightly lower price is a good bargain.

In most cases, people buy resale flats because they are in a hurry and require immediate possession of a property.

Assuming that a buyer is considering both new and resale options, it is important to understand the benefits and drawbacks of both options:

If the property is bought from a reputable developer, a first-sale flat has newer fixtures and fittings that come with a minimum guarantee of problem-free performance. Nor is wear and tear the only problem with older fixtures and fittings.

Newly developed flat projects by good developers tend to be more energy efficient, environmentally compliant, user-friendly and space optimised. Reputable developers are constantly updating their knowledge, techniques and equipment; which allow them to remain relevant and competitive in a market which they know to be replete with other options for buyers. The benefits of this mind-set are directly passed on to the buyer.

Previous owners of a flat always leave a certain indelible part of their personality or culture imprinted on the property. While it is possible to paint over certain things, undoing structural modifications is a challenge.

New flats under-construction can be cheaper than resale flats. In the case of under-construction projects, the sale value of individual units rise only in tandem with the stages of completion. Resale flats often cost as much as new flats because the relative cost of the original acquisition was higher.

New flats have higher resale value and also longer shelf-life on the resale market due to the lower age of the unit. Home purchase is never a decision to be made in a hurry. Regardless of whether a new flat is slightly cheaper or marginally costlier than a resale flat; it is important to understand the pros and cons of old versus new flats, and to always take an informed call when it comes to buying a home.

Whether you choosing to buy a newly developed flat or a resale property, make sure you come to Discount Landlord. We offer very competitive rates on residential and commercial landlord insurance.

Get in touch now on: 0800 294 4522 or visit www.discountinsurance.co.uk to find out how much you can save!

Gustav Ahluwalia