Advantages of buying a new home.
Category News
A great many preconceived ideas can, and often do surround the debate about whether it is better to buy a new or a second hand home. The truth is that there is no one answer: it all depends on the buyer's needs and preferences, what is available at the time and of course, the buyer's financial position. This was said by Rowan Alexander, Director of Alexander Swart Property, at a recent ASPG workshop for the general public, one of many to be held by them again this year.
One of the big arguments in favour of buying a new home is that it is less cash intensive. A significant upfront saving is conferred by the fact that in most cases the buyer will not have to pay transfer duty; the tax levied by the state on almost all property purchases. Furthermore, it is usually possible for the buyer to include many of the costs incurred for extras, alterations and additions (which often arise when buying a new home e.g. for an additional bathroom or a different type of flooring) in the sum granted him in his mortgage bond.
In the first five to ten years, the buyer of a new home will also be spared many of the maintenance ("life cycle") costs that will almost certainly become necessary if he opts for a second hand home. On a second hand home, stoves, geysers, wood- and paintwork, roofs, garage doors, pool filters and cleaning equipment, even structures, tend to need repairs or replacement sooner than the buyer often expects. By way of contrast, not only are these costs deferred on a new home but, in addition, it will have a legal guarantee of five years on the structure and at least one year on the roof. Its fittings and fixtures will probably be more efficient, attractive and longer lasting than those of an older home.
Buying a new home in a new development has a great benefit that it will usually be part of a project in which there is pleasing uniformity and no one home will be unattractively designed or inappropriate for the area. This, says Alexander, is a much underrated factor, one which adds huge value to many new homes. Many a good second hand home on the other hand, has lost much value by being associated with others of less architectural merit, unworthy of the precinct in which they have been built.
"Of course," he added, "it is always possible that the owner or tenant of a new home can also "let the side down" but Home Owners Associations and Bodies Corporate have a large measure of control and act fast when one tenant or owner is not living up to the prescribed standards."
Another great advantage of a new home is that it is likely to be far more energy efficient than many older homes. Solar heated geysers are required by law today and confer a saving of 40% on most electrical bills. LED lights, now widely used on new projects, also result in significant savings and modern designs tend to be far more energy conscious than those of a decade ago.
"All in all, it will almost certainly pay the home buyer to carefully weigh up reasons he may have for rejecting the possibility of buying a new home. I will shortly discuss the possible advantages of, and the reasoning behind buying a used home. As outlined here, there are equally good reasons for buying new."
For further information, contact Rowan Alexander on 082 581 3116 or by email: rowan@aspoperty.co.za
Author: Independent Author
