Buying a new-build property in London requires investment, a whole lot of investment. On the other hand, buying a property that you plan to renovate requires patience, time and of course, a decent-sized investment! To choose between a new-build and a property that requires renovation, it is important to weigh the pros and cons. And, you must account for factors such as budget, time constraints, personal preferences and so on. Have you been thinking about whether you should buy new or renovate a home in London? Here are some important factors that you need to consider!
Who is this home for?
First and foremost, you need to decide whether you are buying this home for the long term or the short term. If you are planning to flip the property and sell it, you might as well renovate it. If you are planning on holding on to the property for the long term, a new build might be a better bet in terms of lesser repairs and maintenance. Secondly, is this home for your personal use or a buy to let property? If you are living in this home, you can invest in a new build. On the other hand, if you plan to rent it out, you can renovate it to add value and then put it on the market.
What is your budget?
The most important thing that you need to consider is your budget. If you can only afford to spend a fixed amount on your home, then you need to decide whether your budget allows you to buy a new-build or to renovate. You need to keep all the costs in mind, which include the cost of buying the property, the cost of renovating, the cost of fixing damages and making repairs and other such associated costs. Based on these figures, you need to assess whether it makes more sense for you to buy a new property or to renovate a property, based on your current finances.
Is there a difference between your wants and needs?
You might want a home with a spacious modular kitchen, but you need a home with three bedrooms. There is a big difference between your wants and needs! In essence, you can renovate a kitchen or redo the bathroom, you can even create an outdoor patio or landscape the garden, but you cannot build a whole new bedroom and bathroom. So, if you’re able to find a property that meets all your needs and requirements while fitting into your budget, it is definitely a good investment. On the other hand, if you’re looking to combine your needs and wants into one property, it might be better to renovate. At the end of the day, this is based on your personal preferences.
Will the location add value?
If you are planning on holding on to the home for the long-term, you need to think about the long term value. The location, the area and the neighbourhood play a big role in impacting the current value and future value of a property. So, if you’re looking at a new-build in an up and coming area, it might be a good investment because the value will grow tremendously over the coming years. Similarly, investing your money into renovation can also help add value to the property, now and in the future. In this case, choosing the right location and finding the right neighbourhood is of utmost importance.
Can you add value?
One important factor to consider is that renovation can actually add value to your home. So, if you install solar panels or create a garage, you can add enormous value to the price of your home. Even small changes like energy-efficient lighting, upgrading the HVAC system or creating a garden can add value to the property. And of course, big renovations such as changing the flooring or insulating the property will add a lot of value. In the long run, you need to decide whether renovations will add value to the property. If not, then renovating will essentially be a waste of your investment.
The pros and cons of new builds vs renovation
Pros and cons of new builds: When you opt for a new build, you can do up the place exactly as you please. This home will be based on your personal taste and style, and you will be the first person to live in it. Of course, a new build is much more expensive. Also, you might have to compromise between your needs and wants.
Pros and cons of renovating: Usually, it is cheaper to renovate. Also, if you decide to sell the property, you will end up earning a profit, which is great in the long run. However, the process of renovation can be long and exhausting. And, often, the renovation costs can go way over budget!
Are you looking to buy a home in London? Get in touch with estate agents in Rainham today!