ADVANTAGES OF BUYING AN USED HOME
Category News
Although many would prefer to buy a new, rather than a used "second hand" home, there can be very definite advantages to buying in the used home market. Discussing these with attendees at an Alexander Swart Property Group workshop for the general public, Rowan Alexander, Director of ASPG, named seven sound reasons for doing so.
- The first of these, is the very obvious one of being able to see and inspect the entire "product". This can give great peace of mind and enable the prospective buyer to eliminate false expectations, as sometimes happens with a home bought off plan. What you see is what you get and although there may be hidden defects, should the buyer suspect this to be the case, he can always call in a qualified inspector to look for flaws or weaknesses not likely to be spotted by a layman.
- The second advantage is that the buyer can usually move in fairly soon, typically within three months, the time required to draw up and finalise the legal and financial conditions. In some cases, should this be necessary, it is possible to take early occupation within a week or two, paying occupational rental until the documentation is confirmed and signed off.
- A third reason for buying a used home is that the buyer is spared the onerous task of getting it in working order and establishing it, the bulk of this work having already been done. All "extras" such as security fittings, electrified fencing or air-conditioning may well already be in place. The garden too is likely to be satisfactory. The garden of a new home is often only rudimentary; some newly laid lawn and a dozen flowers in new beds but in an established home the garden may need very little improvement. Moreover, the new owner is in the happy position of being able to set his schedule for any upgrades or changes to suit his budget and the time he has available.
- Similarly, the precinct or suburb in which the used home is sited is probably well established and attractive. The new owner will not have to "grin and bear" ongoing construction work close to his home, as may be the case when moving into a new development. The noise and dust has often made the first few months in a new home unpleasant for the buyer.
- The buyer of a used home is usually able to secure a more favourable mortgage loan from the bank because the financial institutions see an already-complete home as a less risky proposition than one still to be built. Although banks in SA are now taking a less stringent approach to loans for new developments, they still like an established home in a good condition.
- As a corollary to this, it is often possible to negotiate a slightly better price on a used home whereas typically on a new development is not the case. The developer is not in a position to do one-off deals with every buyer who approaches him.
- Equally important is the fact that it is usually easier to draw up a contract, in which the purchase is made subject to the sale of one's existing home - many purchases are still made this way. On a new development very few developers will agree to this.
"All in all, there are numerous factors in favour of buying an existing home," said Alexander, "and the vast majority of such deals pan out successfully for the buyer. There are of course, also multiple factors in favour of buying a new home. The buyer's decision will depend on his circumstances, needs and preferences, all of which vary from buyer to buyer."
For further information, please contact Rowan Alexander: email rowan@asproperty.co.za or cellphone 082 581 3116
Author: Independent Author
