Some of the more common pros and cons of buying an established home include the following:
PROS
- You’ll know exactly what home you are getting when buying an established property.
- You can move in much faster (within 6 to 10 weeks, depending on the terms of sale).
- Potential for adding value by renovation.
- Generally, you’ll be getting a larger home for the same price compared to a new home (assuming a comparable location). This is due to depreciation of an established home.
- What you see is what you’ll get in the neighbourhood, that is, the type and condition of homes and other features in an established neighbourhood is generally set.
- Infrastructure and facilities (such as public transport, shops, schools, employment opportunities) are already in place.
CONS
- Entry price points for established homes (particularly those with significant land areas) are often out of reach for most first home buyers.
- No savings in stamp (transfer) duty.
- Little or no depreciation allowance claimable.
- It might be time for components of older established homes (like the roof, plumbing, electricals, flooring) to be replaced or refurbished.
Element - The neighbourhood of your secondhand home may comprise “eyesore” properties.